# EDGAR Filing Document

**Accession Number:** 0001846839
**File Stem:** 0001062993-25-011877
**Filing Date:** 2025-6
**Character Count:** 3569703
**Document Hash:** 2dc5dd4f71dd9db41e47e282a6dfde66
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-25-011877.hdr.sgml**: 20250618

**ACCESSION NUMBER**: 0001062993-25-011877

**CONFORMED SUBMISSION TYPE**: 40FR12B

**PUBLIC DOCUMENT COUNT**: 228

**FILED AS OF DATE**: 20250618

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SOL Strategies Inc.
- **CENTRAL INDEX KEY:** 0001846839

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 40FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42710
- **FILM NUMBER:** 251056677

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 217 QUEEN STREET WEST
- **STREET 2:** SUITE 401
- **CITY:** TORONTO
- **NON US STATE TERRITORY:** ONTARIO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5X 1B1
- **BUSINESS PHONE:** 416-480-2488

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 217 QUEEN STREET WEST
- **STREET 2:** SUITE 401
- **CITY:** TORONTO
- **NON US STATE TERRITORY:** ONTARIO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5X 1B1

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cypherpunk Holdings Inc.
- **DATE OF NAME CHANGE:** 20210218

------

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**Washington, D.C. 20549**

**____________________**

**FORM 40-F**

[X] Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934

or

[ ] Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 <br>

For the fiscal year ended   Commission File Number  

<u>**Sol Strategies Inc.**</u><br>(Exact name of Registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Ontario** | &nbsp;&nbsp;**6199** | &nbsp;&nbsp;**Not applicable** |
| (Province or other jurisdiction of incorporation or organization) | &nbsp;&nbsp;(Primary Standard Industrial Classification<br>Code Number) | &nbsp;&nbsp;(I.R.S. Employer<br>Identification Number) |

---

**217 Queen Street West, Suite 401**

**Toronto, Ontario, M5V 0R2, Canada** 

<u>**(416) 480-2488**</u> <br>(Address and telephone number of Registrant's principal executive offices)

**____________________**

**C T Corporation System**

**1015 15th Street N.W., Suite 1000**

**Washington, DC 20005**

<u>**(202) 572-3133**</u><br>(Name, address (including zip code) and telephone number (including<br>area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | &nbsp;&nbsp;<u>Trading Symbol(s)</u> | &nbsp;&nbsp;<u>Name of each exchange on which registered</u> |
| **Common Shares, no par value** | &nbsp;&nbsp;**STKE** | &nbsp;&nbsp;**Nasdaq Capital Market** |

---

------

Securities registered pursuant to Section 12(g) of the Act: None.

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

[ ] Annual information form [ ] Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: **N/A**

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. [ ] Yes [X] No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). [ ] Yes [ ] No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company [X]

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. [ ]

The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [ ]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. [ ]

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). [ ]

------

**EXPLANATORY NOTE**

Sol Strategies Inc. (the "Company" or the "Registrant") is a Canadian issuer eligible to file its registration statement pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), on Form 40-F pursuant to the multi-jurisdictional disclosure system ("MJDS") of the Exchange Act. The Company is a "foreign private issuer" as defined in Rule 3b-4 under the Exchange Act. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.

**FORWARD-LOOKING INFORMATION**

This registration statement and the documents incorporated by reference herein contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward- looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "continues," "forecasts," "projects," "predicts," "intends," "anticipates" or "believes," or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may," "could," "would," "should," "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this registration statement speak only as of the date of this registration statement or as of the date specified in such statement. These forward-looking statements may include, but are not limited to, statements relating to:

- the Company's expectations regarding its revenue, expenses, operations and future operational and financial performance;

- the Company's cash flows;

- popularity, adoption and rate of adoption of cryptocurrencies;

- the rise of Solana's increasing market share in the asset tokenization market;

- the Company's future growth plans and acquisition strategies;

- the Company's ability to stay in compliance with laws and regulations or the interpretation or application thereof that currently apply or may become applicable to its business both in Canada, the United States (the "U.S.") and internationally;

- the Company's expectations with respect to the application of laws and regulations and the interpretation or enforcement thereof and its ability to continue to carry on its business as presently conducted or proposed to be conducted;

- the reliability, stability, performance and scalability of the Company's infrastructure and technology;

- the Company's ability to attract new customers and maintain existing customers;

- the Company's ability to attract and retain personnel;

- the Company's expectations with respect to advancement in its technologies;

- the Company's competitive position and its expectations regarding competition; and

- regulatory developments and the regulatory environments in which the Company operates.

Forward-looking statements are based on certain assumptions and analysis made by us in light of the Company's experience and perception of historical trends, current conditions and expected future developments and other factors the Company believes are appropriate. Forward-looking statements are also subject to risks and uncertainties which include:

- decline in the cryptocurrency market or general economic conditions;

- regulatory uncertainty and risk, including changes in laws or the interpretation or application or enforcement thereof and the obtaining of regulatory approvals;

- the Company is subject to an extensive and highly evolving and uncertain regulatory landscape and any adverse changes to, or its failure to comply with, any laws and regulations, or regulatory interpretation of such laws and regulations, could adversely affect its brand, reputation, business, operating results, and financial condition;

------

- in connection with such laws and regulations or regulatory interpretation thereof, a particular crypto asset's or product offering's status as a "security" in any relevant jurisdiction is subject to a high degree of uncertainty and if the Company is unable to properly characterize a crypto asset or product offering, it may be subject to regulatory scrutiny, investigations, fines, and other penalties, and its business, operating results, and financial condition may be adversely affected;

- risks related to managing the Company's growth;

- the Company's dependence on customer growth;

- the future development and growth of crypto is subject to a variety of factors that are difficult to predict and evaluate. If crypto does not grow as the Company's expect, its business, operating results, and financial condition could be adversely affected;

- regulatory risk, including changes in laws or the interpretation or application thereof and the obtaining of regulatory approvals;

- technology and infrastructure risks;

- cybersecurity risks;

- fluctuations in quarterly operating results;

- competition in the Company's industry and markets;

- the Company's reliance on key personnel;

- the Company's reliance on third party service providers;

- exchange rate fluctuations;

- risks related to terrorism, geopolitical crisis, or widespread outbreak of an illness or other health issue; and

- risks associated with acquisitions and the integration of the acquired businesses;

Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Readers are cautioned that the above does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this registration statement.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, the Company operates in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for the Company's management to predict all risks, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this document may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for crypto assets may not continue and readers should not put undue reliance on past performance and current trends. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

**DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES**

The Registrant is permitted, under MJDS adopted by the United States Securities and Exchange Commission, to prepare this report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Registrant prepares its consolidated financial statements, which are filed with this report on Form 40-F, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and the audit is subject to Canadian auditing and auditor independence standards.

------

**PRINCIPAL DOCUMENTS**

In accordance with General Instruction B.(1) of Form 40-F, the Registrant hereby incorporates by reference Exhibits 99.1 through 99.130 inclusive, as set forth in the Exhibit Index attached hereto.

In accordance with General Instruction D.(9) of Form 40-F, the Registrant has filed or will file certain consents as Exhibit 99.130 as set forth in the Exhibit Index attached hereto.

**TAX MATTERS**

Purchasing, holding, or disposing of securities of the Registrant may have tax consequences under the laws of the United States and Canada that are not described in this registration statement on Form 40-F.

**DESCRIPTION OF COMMON SHARES**

The Registrant is authorized to issue an unlimited number of common shares without par value ("Common Shares"). The holders of Common Shares are entitled to dividends, subject to the rights of holders of any other class of shares of the Registrant, if, as and when declared by the board of directors. The holders of Common Shares are also entitled to one vote per Common Share at meetings of the shareholders of the Registrant and, subject to the rights of holders of any other class of shares of the Registrant, to share, on a pro rata basis with the other holders of Common Shares, the net assets of the Registrant, upon liquidation, dissolution or winding up of the Registrant. The Common Shares are not subject to call or assessment nor do they carry any pre-emptive or conversion rights. There are no provisions attached to such shares for redemption, purchase for cancellation, surrender or sinking or purchase funds.

As of the date hereof, 172,240,738 Common Shares are issued and outstanding.

As of the date hereof, the Registrant also has 5,329,000 Options, 12,416,332 Warrants, 47,365 convertible debenture units and 1,113,669 restricted share units issued and outstanding. See the notes to the Registrant's audited financial statements for the year ended September 30, 2024 for additional information regarding the Company's convertible securities.

**CURRENCY**

Unless otherwise indicated, all dollar amounts in this registration statement on Form 40-F are in Canadian dollars. The exchange rate of Canadian dollars into United States dollars, on September 27, 2024 based upon the daily exchange rate as quoted by the Bank of Canada was Cdn.$1.00 = U.S.$0.7408.

**OFF-BALANCE SHEET ARRANGEMENTS**

The Registrant has no off-balance sheet arrangements. (as that term is defined in paragraph 11(ii) of General Instruction B to Form 40-F) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

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**CONTRACTUAL OBLIGATIONS**

In accordance with General Instruction B.(12) of Form 40-F, the required disclosure is included under the headings "Liquidity Risk" in Management's Discussion and Analysis for the years ended September 30, 2024 and 2023 filed as Exhibit 99.73 to this Registration Statement.

**NASDAQ CORPORATE GOVERNANCE**

The Company is a "foreign private issuer" as defined in Rule 3b-4 under Exchange Act and the Company's common shares are listed on the Nasdaq Capital Market (the "Nasdaq") and the Canadian Securities Exchange (the "CSE"). Rule 5615(a)(3) of the listing rules of the Nasdaq (the "Nasdaq Stock Market Rules") permits foreign private issuers to follow home country practices in lieu of certain provisions of Nasdaq Stock Market Rules. A foreign private issuer that follows home country practices in lieu of certain provisions of Nasdaq Stock Market Rules must disclose ways in which its corporate governance practices differ from those followed by domestic companies either on its website or in the annual report that it distributes to shareholders in the United States.

A description of the ways in which the Company's governance practices differ from those followed by domestic companies pursuant to Nasdaq standards are as follows:

***Majority Independent Directors***: The Registrant does not follow Nasdaq Stock Market Rule 5605(b)(1), which requires companies to have a majority of the board of directors comprised of "Independent Directors" as defined in Nasdaq Stock Market Rule 5605(a)(2). In lieu of following Nasdaq Stock Market Rule, the Registrant follows the rules of the CSE.

***Compensation Committee Charter***: The Registrant does not follow Nasdaq Stock Market Rule 5605(d)(1), which requires companies to adopt a formal written compensation committee charter and have a compensation committee review and reassess the adequacy of the charter on an annual basis. In lieu of following Nasdaq Stock Market Rule 5605(d)(1), the Registrant follows the rules of the CSE.

***Independent Director Oversight of Director Nominations*****:** The Registrant does not follow Nasdaq Stock Market Rule 5605(e)(1), which requires Independent Director involvement in the selection of director nominees, by having a nominations committee comprised solely of Independent Directors. In lieu of following Nasdaq Stock Market Rule 5605(e)(1), the Registrant follows the rules of the CSE.

***Nominations Committee Charter***: The Registrant does not follow Nasdaq Stock Market Rule 5605(e)(2), which requires companies to adopt a formal written nominations committee charter or board resolution, as applicable, addressing the director nomination process and such related matters as may be required under the federal securities laws. In lieu of following Nasdaq Stock Market Rule 5605(e)(2), the Registrant follows the rules of the CSE.

***Shareholder Meeting Quorum Requirements***: The Registrant does not follow Nasdaq Stock Market Rule 5620(c) which requires that the minimum quorum requirement for a meeting of shareholders be 33 1/3 % of the outstanding common shares. In addition, Nasdaq Stock Market Rule 5620(c) requires that an issuer listed on Nasdaq state its quorum requirement in its by-laws. In lieu of following Nasdaq Stock Market Rule 5620(c), the Registrant follows the rules of the CSE.

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The foregoing is consistent with applicable laws, customs and practices in Canada.

**UNDERTAKING**

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities registered pursuant to Form 40-F or transactions in said securities.

**CONSENT TO SERVICE OF PROCESS**

The Registrant has concurrently filed a Form F-X in connection with the class of securities to which this registration statement relates.

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Any change to the name or address of the Registrant's agent for service shall be communicated promptly to the Commission by amendment to the Form F-X referencing the file number of the Registrant.

**SIGNATURES**

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  |  | **SOL STRATEGIES INC.** |
|  | By: | */s/ Leah Wald* |
|  |  | Name: Leah Wald |
| Date: June 18, 2025 |  | Title: Chief Executive Officer & Director |

---

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**EXHIBIT INDEX**

The following documents are being filed with the Commission as Exhibits to this registration statement:

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.1](exhibit99-1.htm) | [News Release dated February 20, 2024](exhibit99-1.htm) |
| [99.2](exhibit99-2.htm) | [Interim Condensed Consolidated Financial Statements of Cypherpunk Holdings Inc. for the three months ended December 31, 2023 and 2022](exhibit99-2.htm) |
| [99.3](exhibit99-3.htm) | [Management's Discussion and Analysis of Cypherpunk Holdings Inc. for the three month period ended December 31, 2023 and 2022](exhibit99-3.htm) |
| [99.4](exhibit99-4.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CFO dated February 29, 2024](exhibit99-4.htm) |
| [99.5](exhibit99-5.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CEO dated February 29, 2024](exhibit99-5.htm) |
| [99.6](exhibit99-6.htm) | [News Release dated March 11, 2024](exhibit99-6.htm) |
| [99.7](exhibit99-7.htm) | [News Release dated May 10, 2024](exhibit99-7.htm) |
| [99.8](exhibit99-8.htm) | [Confirmation of Notice of Record and Meeting Dates dated May 27, 2024](exhibit99-8.htm) |
| [99.9](exhibit99-9.htm) | [Interim Condensed Consolidated Financial Statements of Cypherpunk Holdings Inc. for the six months ended March 31, 2024 and 2023](exhibit99-9.htm) |
| [99.10](exhibit99-10.htm) | [Management's Discussion and Analysis of Cypherpunk Holdings Inc. for the six months ended March 31, 2024 and 2023](exhibit99-10.htm) |
| [99.11](exhibit99-11.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CFO dated May 29, 2024](exhibit99-11.htm) |
| [99.12](exhibit99-12.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CEO dated May 29, 2024](exhibit99-12.htm) |
| [99.13](exhibit99-13.htm) | [News Release dated May 31, 2024](exhibit99-13.htm) |
| [99.14](exhibit99-14.htm) | [News Release dated June 12, 2024](exhibit99-14.htm) |
| [99.15](exhibit99-15.htm) | [News Release dated July 5, 2024](exhibit99-15.htm) |
| [99.16](exhibit99-16.htm) | [News Release dated July 9, 2024](exhibit99-16.htm) |
| [99.17](exhibit99-17.htm) | [Management Information Circular of Cypherpunk Holdings Inc. dated July 2, 2024](exhibit99-17.htm) |
| [99.18](exhibit99-18.htm) | [Request for Financial Statements of Cypherpunk Holdings Inc. for the Annual and Special Meeting of Shareholders to be held on July 30, 2024](exhibit99-18.htm) |
| [99.19](exhibit99-19.htm) | [Form of Proxy of Cypherpunk Holdings Inc. for the Annual and Special Meeting of Shareholders to be held on July 30, 2024](exhibit99-19.htm) |
| [99.20](exhibit99-20.htm) | [Voting Instruction Form of Cypherpunk Holdings Inc. for the Annual and Special Meeting of Shareholders to be held on July 30, 2024](exhibit99-20.htm) |
| [99.21](exhibit99-21.htm) | [News Release dated July 16, 2024](exhibit99-21.htm) |
| [99.22](exhibit99-22.htm) | [News Release dated July 31, 2024](exhibit99-22.htm) |

---

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.23](exhibit99-23.htm) | [Interim Unaudited Condensed Consolidated Financial Statements of Cypherpunk Holdings Inc. for the nine months ended June 30, 2024 and 2023](exhibit99-23.htm) |
| [99.24](exhibit99-24.htm) | [Management's Discussion and Analysis of Cypherpunk Holdings Inc. for the nine months ended June 30, 2024 and 2023](exhibit99-24.htm) |
| [99.25](exhibit99-25.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CFO dated August 29, 2024](exhibit99-25.htm) |
| [99.26](exhibit99-26.htm) | [Certification of Interim Filings of Cypherpunk Holdings Inc. by CEO dated August 29, 2024](exhibit99-26.htm) |
| [99.27](exhibit99-27.htm) | [News Release dated September 9, 2024](exhibit99-27.htm) |
| [99.28](exhibit99-28.htm) | [News Release dated September 10, 2024](exhibit99-28.htm) |
| [99.29](exhibit99-29.htm) | [News Release dated September 11, 2024](exhibit99-29.htm) |
| [99.30](exhibit99-30.htm) | [Certificate and Articles of Amendment of Cypherpunk Holdings Inc. dated September 12, 2024](exhibit99-30.htm) |
| [99.31](exhibit99-31.htm) | [News Release dated September 12, 2024](exhibit99-31.htm) |
| [99.32](exhibit99-32.htm) | [Material Change Report dated September 24, 2024](exhibit99-32.htm) |
| [99.33](exhibit99-33.htm) | [News Release dated October 3, 2024](exhibit99-33.htm) |
| [99.34](exhibit99-34.htm) | [News Release dated October 10, 2024](exhibit99-34.htm) |
| [99.35](exhibit99-35.htm) | [News Release dated October 15, 2024](exhibit99-35.htm) |
| [99.36](exhibit99-36.htm) | [News Release dated October 22, 2024](exhibit99-36.htm) |
| [99.37](exhibit99-37.htm) | [Material Change Report dated October 23, 2024](exhibit99-37.htm) |
| [99.38](exhibit99-38.htm) | [News Release dated October 25, 2024](exhibit99-38.htm) |
| [99.39](exhibit99-39.htm) | [News Release dated October 29, 2024](exhibit99-39.htm) |
| [99.40](exhibit99-40.htm) | [News Release dated October 29, 2024](exhibit99-40.htm) |
| [99.41](exhibit99-41.htm) | [News Release dated November 18, 2024](exhibit99-41.htm) |
| [99.42](exhibit99-42.htm) | [News Release dated November 25, 2024](exhibit99-42.htm) |
| [99.43](exhibit99-43.htm) | [News Release dated November 25, 2024](exhibit99-43.htm) |
| [99.44](exhibit99-44.htm) | [News Release dated November 25, 2024](exhibit99-44.htm) |
| [99.45](exhibit99-45.htm) | [Material Change Report dated November 26, 2024](exhibit99-45.htm) |
| [99.46](exhibit99-46.htm) | [Asset Purchase Agreement between Sol Strategies Inc. and Ben Hawkins dated November 14, 2024](exhibit99-46.htm) |
| [99.47](exhibit99-47.htm) | [News Release dated December 4, 2024](exhibit99-47.htm) |
| [99.48](exhibit99-48.htm) | [News Release dated December 5, 2024](exhibit99-48.htm) |
| [99.49](exhibit99-49.htm) | [News Release dated December 11, 2024](exhibit99-49.htm) |
| [99.50](exhibit99-50.htm) | [News Release dated December 12, 2024](exhibit99-50.htm) |
| [99.51](exhibit99-51.htm) | [News Release dated December 20, 2024](exhibit99-51.htm) |
| [99.52](exhibit99-52.htm) | [News Release dated December 31, 2024](exhibit99-52.htm) |
| [99.53](exhibit99-53.htm) | [News Release dated December 31, 2024](exhibit99-53.htm) |
| [99.54](exhibit99-54.htm) | [Asset Purchase Agreement between Sol Strategies Inc. and Orangefin Ventures LLC dated December 20, 2024](exhibit99-54.htm) |
| [99.55](exhibit99-55.htm) | [Material Change Report dated December 31, 2024](exhibit99-55.htm) |
| [99.56](exhibit99-56.htm) | [News Release dated January 7, 2025](exhibit99-56.htm) |

---

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| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.57](exhibit99-57.htm) | [Material Change Report dated January 7, 2025](exhibit99-57.htm) |
| [99.58](exhibit99-58.htm) | [News Release dated January 9, 2025](exhibit99-58.htm) |
| [99.59](exhibit99-59.htm) | [Loan Agreement between Sol Strategies Inc. and Antanas Guoga dated October 21, 2024](exhibit99-59.htm) |
| [99.60](exhibit99-60.htm) | [Amended and Restated Loan Agreement between Sol Strategies Inc. and Antanas Guoga dated January 6, 2025](exhibit99-60.htm) |
| [99.61](exhibit99-61.htm) | [News Release dated January 16, 2025](exhibit99-61.htm) |
| [99.62](exhibit99-62.htm) | [News Release dated January 16, 2025](exhibit99-62.htm) |
| [99.63](exhibit99-63.htm) | [Material Change Report dated January 16, 2025](exhibit99-63.htm) |
| [99.64](exhibit99-64.htm) | [Securities Purchase Agreement between Sol Strategies Inc. and ParaFi Venture Fund II LP dated January 8, 2025](exhibit99-64.htm) |
| [99.65](exhibit99-65.htm) | [Securities Purchase Agreement between Sol Strategies Inc. and ParaFi Quantitative Strategies LP dated January 8, 2025](exhibit99-65.htm) |
| [99.66](exhibit99-66.htm) | [Securities Purchase Agreement between Sol Strategies Inc. and ParaFi Digital Opportunities LP dated January 8, 2025](exhibit99-66.htm) |
| [99.67](exhibit99-67.htm) | [News Release dated January 17, 2025](exhibit99-67.htm) |
| [99.68](exhibit99-68.htm) | [News Release dated January 21, 2025](exhibit99-68.htm) |
| [99.69](exhibit99-69.htm) | [News Release dated January 21, 2025](exhibit99-69.htm) |
| [99.70](exhibit99-70.htm) | [News Release dated January 22, 2025](exhibit99-70.htm) |
| [99.71](exhibit99-71.htm) | [News Release dated January 24, 2025](exhibit99-71.htm) |
| [99.72](exhibit99-72.htm) | [News Release dated January 27, 2025](exhibit99-72.htm) |
| [99.73](exhibit99-73.htm) | [Management's Discussion and Analysis of Sol Strategies Inc. for the years ended September 30, 2024 and 2023](exhibit99-73.htm) |
| [99.74](exhibit99-74.htm) | [News Release dated January 29, 2025](exhibit99-74.htm) |
| [99.75](exhibit99-75.htm) | [News Release dated February 3, 2025](exhibit99-75.htm) |
| [99.76](exhibit99-76.htm) | [News Release dated February 4, 2025](exhibit99-76.htm) |
| [99.77](exhibit99-77.htm) | [News Release dated February 10, 2025](exhibit99-77.htm) |
| [99.78](exhibit99-78.htm) | [News Release dated February 11, 2025](exhibit99-78.htm) |
| [99.79](exhibit99-79.htm) | [News Release dated February 14, 2025](exhibit99-79.htm) |
| [99.80](exhibit99-80.htm) | [News Release dated February 18, 2025](exhibit99-80.htm) |
| [99.81](exhibit99-81.htm) | [Letter from Former Auditor dated February 12, 2025](exhibit99-81.htm) |
| [99.82](exhibit99-82.htm) | [Letter from Successor Auditor dated February 6, 2025](exhibit99-82.htm) |
| [99.83](exhibit99-83.htm) | [Notice of Change of Auditor dated February 12, 2025](exhibit99-83.htm) |
| [99.84](exhibit99-84.htm) | [News Release dated February 20, 2025](exhibit99-84.htm) |
| [99.85](exhibit99-85.htm) | [News Release dated February 24, 2025](exhibit99-85.htm) |
| [99.86](exhibit99-86.htm) | [News Release dated February 25, 2025](exhibit99-86.htm) |

---

------

---

| | |
|:---|:---|
| <u>**Exhibit**</u> | <u>**Description**</u> |
| [99.87](exhibit99-87.htm) | [News Release dated March 3, 2025](exhibit99-87.htm) |
| [99.88](exhibit99-88.htm) | [Interim Unaudited Condensed Consolidated Financial Statements of Sol Strategies Inc. for the three months ended December 31, 2024 and 2023](exhibit99-88.htm) |
| [99.89](exhibit99-89.htm) | [Management's Discussion and Analysis of Sol Strategies Inc. for the three months ended December 31, 2024 and 2023](exhibit99-89.htm) |
| [99.90](exhibit99-90.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CFO dated March 3, 2025](exhibit99-90.htm) |
| [99.91](exhibit99-91.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CEO dated March 3, 2025](exhibit99-91.htm) |
| [99.92](exhibit99-92.htm) | [News Release dated March 3, 2025](exhibit99-92.htm) |
| [99.93](exhibit99-93.htm) | [News Release dated March 7, 2025](exhibit99-93.htm) |
| [99.94](exhibit99-94.htm) | [News Release dated March 10, 2025](exhibit99-94.htm) |
| [99.95](exhibit99-95.htm) | [News Release dated March 17, 2025](exhibit99-95.htm) |
| [99.96](exhibit99-96.htm) | [Material Change Report dated March 17, 2025](exhibit99-96.htm) |
| [99.97](exhibit99-97.htm) | [Asset Purchase Agreement between Sol Strategies Inc. and Michael Hubbard dated March 7, 2025](exhibit99-97.htm) |
| [99.98](exhibit99-98.htm) | [News Release dated April 7, 2025](exhibit99-98.htm) |
| [99.99](exhibit99-99.htm) | [News Release dated April 11, 2025](exhibit99-99.htm) |
| [99.100](exhibit99-100.htm) | [News Release dated April 15, 2025](exhibit99-100.htm) |
| [99.101](exhibit99-101.htm) | [News Release dated April 23, 2025](exhibit99-101.htm) |
| [99.102](exhibit99-102.htm) | [Material Change Report dated April 23, 2025](exhibit99-102.htm) |
| [99.103](exhibit99-103.htm) | [Annual Information Form of Sol Strategies Inc. for the financial year ended September 30, 2024](exhibit99-103.htm) |
| [99.104](exhibit99-104.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CFO dated April 28, 2025](exhibit99-104.htm) |
| [99.105](exhibit99-105.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CEO dated April 28, 2025](exhibit99-105.htm) |
| [99.106](exhibit99-106.htm) | [News Release dated April 30, 2025](exhibit99-106.htm) |
| [99.107](exhibit99-107.htm) | [News Release dated May 1, 2025](exhibit99-107.htm) |
| [99.108](exhibit99-108.htm) | [News Release dated May 1, 2025](exhibit99-108.htm) |
| [99.109](exhibit99-109.htm) | [Securities Purchase Agreement between Sol Strategies Inc. and ATW Solana Ventures SPV LLC dated April 23, 2025](exhibit99-109.htm) |
| [99.110](exhibit99-110.htm) | [Material Change Report dated May 1, 2025](exhibit99-110.htm) |
| [99.111](exhibit99-111.htm) | [News Release dated May 6, 2025](exhibit99-111.htm) |
| [99.112](exhibit99-112.htm) | [News Release dated May 8, 2025](exhibit99-112.htm) |
| [99.113](exhibit99-113.htm) | [News Release dated May 12, 2025](exhibit99-113.htm) |
| [99.114](exhibit99-114.htm) | [Voting Instruction Form of Sol Strategies Inc. for the Annual and Special Meeting of Shareholders to be held on June 19, 2025](exhibit99-114.htm) |
| [99.115](exhibit99-115.htm) | [Request for Financial Statements of Sol Strategies Inc. for the Annual and Special Meeting of Shareholders to be held on June 19, 2025](exhibit99-115.htm) |
| [99.116](exhibit99-116.htm) | [Management Information Circular of Sol Strategies Inc. dated May 9, 2025](exhibit99-116.htm) |
| [99.117](exhibit99-117.htm) | [Form of Proxy of Sol Strategies Inc. for the Annual and Special Meeting of Shareholders to be held on June 19, 2025](exhibit99-117.htm) |
| [99.118](exhibit99-118.htm) | [Notice of Annual and Special Meeting of Shareholders of Sol Strategies Inc. to be held on June 19, 2025](exhibit99-118.htm) |
| [99.119](exhibit99-119.htm) | [News Release dated May 27, 2025](exhibit99-119.htm) |
| [99.120](exhibit99-120.htm) | [News Release dated May 28, 2025](exhibit99-120.htm) |
| [99.121](exhibit99-121.htm) | [News Release dated May 29, 2025](exhibit99-121.htm) |
| [99.122](exhibit99-122.htm) | [Interim Unaudited Condensed Consolidated Financial Statements of Sol Strategies Inc. for the three and six months ended March 31, 2025 and 2024](exhibit99-122.htm) |
| [99.123](exhibit99-123.htm) | [Management's Discussion and Analysis of Sol Strategies Inc. for the six months ended March 31, 2025 and 2024](exhibit99-123.htm) |
| [99.124](exhibit99-124.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CFO dated May 30, 2025](exhibit99-124.htm) |
| [99.125](exhibit99-125.htm) | [Certification of Interim Filings of Sol Strategies Inc. by CEO dated May 30, 2025](exhibit99-125.htm) |
| [99.126](exhibit99-126.htm) | [News Release dated June 2, 2025](exhibit99-126.htm) |
| [99.127](exhibit99-127.htm) | [Consolidated Financial Statements of Sol Strategies Inc. for the years ended September 30, 2024 and 2023](exhibit99-127.htm) |
| [99.128](exhibit99-128.htm) | [Certification of Refiled Annual Filings of Sol Strategies Inc. by CFO dated June 18, 2025](exhibit99-128.htm) |
| [99.129](exhibit99-129.htm) | [Certification of Refiled Annual Filings of Sol Strategies Inc. by CEO dated June 18, 2025](exhibit99-129.htm) |
| [99.130](exhibit99-130.htm) | [Consent of Davidson & Company LLP](exhibit99-130.htm) |

---

------

## Exhibit 99.1

------

![](exhibit99-1x001.jpg)

**CYPHERPUNK ANNOUNCES INTENTION TO COMMENCE NORMAL COURSE ISSUER BID**

**Toronto, Ontario - February 20, 2024 - Cypherpunk Holdings Inc. (the "Company") (CSE: HODL) (OTC: CYFRF)** is pleased to announce that it intends to commence a normal course issuer bid (the "**NCIB**"), under which it may purchase up to 7,603,359 common shares of the Company over a period of one year (the "**NCIB Period**"), representing approximately 5% of the Company's issued and outstanding common shares, with up to 3,041,343 common shares of the Company purchasable over any 30-day period within the NCIB Period, being 2% of the Company's issued and outstanding common shares. The NCIB is expected to commence on or about February 20, 2024, and will continue until the earlier of February 20, 2025, or the date by which the Company has acquired the maximum number of common shares which may be purchased under the NCIB.

All common shares purchased under the NCIB will be purchased on the open market through the facilities of the Canadian Securities Exchange at the prevailing market price of the common shares at the time of purchase, and shall be duly cancelled and returned to treasury.

The Company believes that the market price of the common shares may not fully reflect the value of its business and prospects, and as such it believes that purchasing its own common shares for cancellation is an appropriate strategy for increasing long-term shareholder value and represents an appropriate use of the Company's financial resources. The Company intends to appoint Canaccord Genuity as its broker to conduct the NCIB transactions on its behalf.

In furtherance of its strategic initiatives, Cypherpunk Holdings Inc. is also delighted to announce it has entered into a definitive agreement for the sale of 2.5 million shares of Animoca Brands. The shares are to be sold at a price of $0.90 AUD per share. The proceeds from this sale will be reinvested in accordance with the Company's investment strategy, aimed at maximizing returns and furthering its commitment to investing in privacy technologies, high performance compute (HPC), and the secular trend towards decentralisation.

**About Cypherpunk Holdings Inc.**

Cypherpunk was established to invest in companies, technologies and protocols, which enhance or protect privacy. Its strategy is to make targeted investments in businesses and assets with strong privacy attributes, often within the blockchain ecosystem, including select cryptocurrencies. Current equity investments include Animoca Brands, Samourai Wallet, Wasabi Wallet, Chia and NGRAVE.

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

------

*There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

---

| |
|:---|
| **Officer/Director Contact** |
| Tony Guoga |
| Chief Executive Officer |
| <u>tony@cypherpunkholdings.com</u> |
| Office: 1-647-946-1300 |

---

------

## Exhibit 99.2

------

![](exhibit99-2x001.jpg)

**INTERIM CONDENSED CONSOLIDATED**

**FINANCIAL STATEMENTS**

**FOR THE THREE MONTHS ENDED**

**DECEMBER 31, 2023 AND 2022**

**(Unaudited - Expressed in Canadian Dollars)**

------

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying interim condensed consolidated financial statements of Cypherpunk Holdings Inc. were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the note 2 of these interim condensed consolidated financial statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at December 31, 2023.

**CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES**

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officers, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at December 31, 2023.

**NOTICE TO READER**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying interim condensed consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these interim condensed consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of financial statements by an entity's auditor.

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **December 31,**<br>**2023** | **September 30,**<br>**2023** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 3) | $**1940949** | $1927280 |
| Receivables and prepaid expenses (note 4) | **107609** | 117138 |
|  | **2048558** | 2044418 |
| Cryptocurrencies pledged as collateral (note 5 and 6) | **5680339** |  |
| Cryptocurrencies (note 6) | **6437583** | 7852418 |
| Investments (note 7) | **9113130** | 6464119 |
| Other assets (note 8) | **52236** | 60145 |
| Deferred tax asset (note 17) | **633145** | 633145 |
|  | $**23964991** | $17054245 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (note 9 and 14) | $**172892** | $226476 |
|  | **172892** | 226476 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 10) | **17864782** | 17864782 |
| Reserves | **17707122** | 17669046 |
| Accumlated other comprehensive income (loss) | **4082632** | (196846) |
| Accumulated deficit | **(15862437)** | (18509213) |
|  | **23792099** | 16827769 |
|  | $**23964991** | $17054245 |

---

Nature of operations and going concern (note 1)

Subsequent events (note 20)

SIGNED ON BEHALF OF THE BOARD

*(Signed) "Rubsun Ho"* *(Signed) "Moe Adham"* <br> Director Director

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Three months ended December 31,** | **2023** | 2022 |
| **Income (loss)** |  |  |
| Unrealized gain (loss) on investments (note 7) | $**2649011** | $(471116) |
| Realized gain (loss) on investments (note 7) | **270661** | (707649) |
| Other income | **10451** | 42677 |
| Dividend income | **2613** | 3867 |
| Realized gain on disposition of assets (Note 8) | **-** | 536633 |
|  | **2932736** | (595588) |
| **Expenses** |  |  |
| Consulting fees (note 13) | **106360** | 116914 |
| Professional fees (note 13) | **44466** | 155299 |
| Foreign exchange loss | **44217** | 190931 |
| General and administrative | **39407** | 86310 |
| Stock-based compensation (notes 11 and 13) | **38076** | 141806 |
| Director fees (note 13) | **10298** | 15000 |
| Amortization (note 8) | **7909** | 47110 |
|  | **290733** | 753370 |
| **Income (loss) for the period** | **2642003** | (1348958) |
| **Other comprehensive income** |  |  |
| Items that may be reclassified to profit or loss | **4279478** |  |
| Items that will not be reclassified to profit or loss | **4773** | - |
| **Total comprehensive income (loss)** | $**6926254** | $(1348958) |
| **Earnings (loss) per share - basic and diluted** | $**0.02** | $(0.01) |
| **Weighted average number of shares outstanding - basic and diluted** | 152067183 | 160070718 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Accumulated** |  |  |
|  |  |  |  | **Other** |  |  |
|  | **Common** | **Capital** |  | **Comprehensive** | **Retained** |  |
|  | **Shares** | **Stock** | **Reserves** | **Income** | **Deficit** | **Total** |
| **Balance, September 30, 2022** | **160070718** | $**18572547** | $**17238101** | $**-** | $**(12226885)** | $**23583763** |
| Stock-based compensation (note 11) |  |  | 141806 |  |  | 141806 |
| Net loss for the period | - | - | - | - | (1348958) | (1348958) |
| **Balance, December 31, 2022** | **160070718** | $**18572547** | $**17379907** | $**-** | $**(13575843)** | $**22376611** |
| Stock-based compensation (note 11) |  |  | 289139 |  |  | 289139 |
| Purchase of shares for cancellation (note 10) | (8003535) | (707765) |  |  |  | (707765) |
| Net loss for the period |  |  |  |  | (4933370) | (4933370) |
| Items that may be reclassified to profit or loss |  |  |  | (196846) |  | (196846) |
| **Balance, September 30, 2023** | **152067183** | $**17864782** | $**17669046** | $**(196846)** | $**(18509213)** | $**16827769** |
| Stock-based compensation (note 11) |  |  | 38076 |  |  | 38076 |
| Net income for the period |  |  |  |  | 2642003 | 2642003 |
| Items that may be reclassified to profit or loss |  |  |  | 4284251 |  | 4284251 |
| Items reclassified to retained earnings | - | - | - | (4773) | 4773 | - |
| **Balance, December 31, 2023** | **152067183** | $**17864782** | $**17707122** | $**4082632** | $**(15862437)** | $**23792099** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Three months ended December 31,** | **2023** | **2022** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| Income (loss) for the period | $**2642003** | $(1348958) |
| **Adjustments for:** |  |  |
| Unrealized (gain) loss on investments | **(2649011)** | 707649 |
| Realized loss (gain) on investments |  | (536633) |
| Stock-based compensation | **38076** | 141806 |
| Asset impairment | **-** | 2837 |
| Interest | **-** | 15688 |
| Foreign exchange loss | **-** | 190931 |
| Amortization of assets sold | **-** | 263895 |
| Amortization | **7909** | 47110 |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **9529** | (3893) |
| Treasury management assets | **-** | 60037 |
| Accounts payable and accrued liabilities | **(53584)** | (39862) |
| **Cash used in operating activities** | **(5078)** | (499393) |
| **Investing activities** |  |  |
| Proceeds from sale of cryptocurrencies | **18747** | 3035 |
| Proceeds from sale of assets | **-** | 1172863 |
| Sale/redemption of investments | **-** | 1591591 |
| **Cash used in investing activities** | **18747** | 2767489 |
| **Change in cash and cash equivalents** | **13669** | 2268096 |
| **Cash and cash equivalents, beginning of the period** | **1927280** | 18537221 |
| **Cash and cash equivalents, end of the period** | $**1940949** | $20805317 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Cypherpunk Holdings Inc. (the "Company" or "Cypherpunk") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company's business plan is based on its investment thesis that there will be increasing demand for technologies and cryptocurrencies with strong privacy, self-sovereignty, and digital property rights (the "Thesis"). Cypherpunk executes its Thesis through three lines of effort: (1) Treasury management and diversified yield generation - a core holding of crypto currencies supported with risk management strategies to reduce volatility, and lending, staking and liquidity provisioning to generate yield; (2) Private equity focused on early stage companies in the privacy, gaming, DeFi and blockchain sectors; and (3) Active investments to generate yield including bitcoin mining. The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 16). Additionally, during the three months ended December 31, 2023, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

The unaudited interim condensed consolidated financial statements have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other assets to supports its operations for the next twelve months from the date of the issuance of the unaudited interim condensed consolidated financial statements.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Statement of Compliance**

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. These unaudited interim condensed consolidated financial statements for the three month period ending December 31, 2023 (the "Interim Statements") have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

The policies applied in these Interim Statements are based on IFRSs issued and outstanding as of February 29, 2024, the date the Board of Directors approved the Interim Statements. The same accounting policies and methods of computation are followed in these Interim Statements as compared with the most recent audited annual financial statements as at and for the year ended September 30, 2023. Any subsequent changes to IFRS that are given effect in the Company's annual financial statements for the year ending September 30, 2024 could result in restatement of these Interim Statements.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**3. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at December 31, 2023 and September 30, 2023.

---

| | | |
|:---|:---|:---|
|  | **December 31,** | September 30, |
|  | **2023** | 2023 |
| Cash in banks | $**1940949** | $1927280 |
|  | **1940949** | $1927280 |

---

**4. RECEIVABLES AND PREPAID EXPENSES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | September 30, |
|  | **2023** | 2023 |
| Prepaid expenses | $**36365** | $54477 |
| Harmonized sales tax | **71244** | 62661 |
|  | $**107609** | $117138 |

---

**5. TREASURY MANGEMENT INVESTMENTS**

During the quarter ended December 31, 2023 the Company resumed its treasury management investment strategy to generate income on its cryptocurrency assets, previously executed during the year ended September 30, 2022. As at the date hereof, the treasury management investment strategy involves selling covered European call options (each, an "Option") on OTC markets. During the three months ended December 31, 2023, the Company transferred 50 Bitcoin to each of Zerocap Pty Ltd. ("Zerocap") and Wintermute Trading Ltd. ("Wintermute") to use as collateral. The Company recognizes premium income upon the sale of an Option. In the event the Option expires in-the-money, the Company's underlying Bitcoin used as collateral to sell the Option are sold at the strike price of the Option. There were no Options written during the year ended September 30, 2023. The active treasury management trades at December 31, 2023 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Trading**<br>**Platform** | **Bought/**<br>**Sold** | <br>**Trade Date** | **Crypto-**<br>**currency** | <br>**Expiry** | **Strike**<br>**(USD)** | **Premium**<br>**(Bitcoin)** | **Bitcoin**<br>**Pledged** |
| Zerocap Pty Ltd. Call | Sold | 29-Dec-23 | Bitcoin | 12-Jan-24 | $51000 | 0.20800 | 50.73 |
| Wintermute Trading Ltd Call | Sold | 29-Dec-23 | Bitcoin | 12-Jan-24 | $52000 | 0.27410 | 50.40 |
| **Total** |  |  |  |  |  |  |  |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**6. CRYPTOCURRENCIES**

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) (a)** | **Cost (CAD) (a)** | **Market Value** |
| Bitcoin | 216.78 | $**6097183** | $**8251638** | $**12117922** |
| **Balance at December 31, 2023** |  | $**6097183** | $**8251638** | $**12117922** |
|  | **Quantity** | **Cost (USD) (a)** | **Cost (CAD) (a)** | **Market Value** |
| Bitcoin | 215.37 | $**6038069** | $**8172065** | $**7852418** |
| **Balance at September 30, 2023** |  | $**6038069** | $**8172065** | $**7852418** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.

The activity of the Company's cryptocurrencies, excluding the 101.61 Bitcoin posted as collateral (50.94 Bitcoin at Zerocap and 50.67 Bitcoin at Wintermute, including premium on active trades), for the three months ended December 31, 2023 and the year ended September 30, 2023 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022** | $**3035** |
| Cash purchases | 8120383 |
| Cash sales | (19620) |
| Investment income received in cryptocurrencies | 31625 |
| Dividend income received in cryptocurrencies | 36642 |
| Change in fair value | (319647) |
| **Balance at September 30, 2023** | $**7852418** |
| Cash purchases |  |
| Cash sales | (18747) |
| Gain of cash sales | 4773 |
| Investment income received in cryptocurrencies | 9278 |
| Cryptocurrencies posted as collateral | (3646063) |
| Change in fair value | 2235924 |
| **Balance at December 31, 2023** | $**6437583** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

The activity of the Company's cryptocurrencies posted as collateral (note 5) for the three months ended December 31, 2023 and year ended September 30, 2023, is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022 and September 30, 2023** | $**-** |
| Cryptocurrencies post as collateral | 3646063 |
| Investment income received in cryptocurrencies | 85335 |
| Change in fair value | 1948941 |
| **Balance at December 31, 2023** | $**5680339** |

---

**7. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31,** |  | September 30, |
|  | **Quantity** | **2023** | Quantity | 2023 |
| Animoca Brands Corporation Limited (a) | **9090909** | $**7795533** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358953** | 19860 | 366932 |
| GOAT Gaming Pte Ltd. (c) | **176470** | **-** | 176470 |  |
| ISLA Digital Strategies SP (d) | **-** | **-** |  |  |
| Lucy Labs Flagship Offshore Fund SPC (e) | **500** | **-** | 500 |  |
| NGRAVE.IO (f) | **138966** | **82799** | 138966 | 80976 |
| Streetside Development, LLC (g) | **1429** | **119979** | 1429 | 122646 |
| zkSNACKS Limited - Shares (h) | **4500** | **755866** | 4500 | 772668 |
|  |  | $**9113130** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). At December 31, 2023 the Company determined the fair value of its Animoca shares was $7,795,533 (September 30, 2023 - $5,120,897) recognizing an unrealized gain of $2,674,636 in the Interim Statements (2022 - $nil).

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at December 31, 2023 recognizing an unrealized loss of $7,979 in the Interim Statements (2022 - $nil).

(c) During the year ended September 30, 2022 the Company acquired 176,470 subscription shares of GOAT Gaming Pte Ltd. ("GOAT") for consideration of US$200,000 priced at US$1.13333 per subscription share ($252,695). The Company's management determined that as at September 30, 2023 and 2022, the fair value of GOAT was $nil, and recognized a realized loss of $252,695 in the consolidated statements of comprehensive income for the year ended September 30, 2022.

(d) During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the three months ended December 31, 2023.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

(e) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023 and does not expect to recover any amounts from this investment.

(f) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at December 31, 2023 recognizing an unrealized gain of $1,823 in the Interim Statements (2022 - $nil).

(g) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $119,979 as at December 31, 2023 recognizing an unrealized loss of $2,667 in the Interim Statements (2022 - $nil).

(h) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $755,866 as at December 31, 2023 recognizing an unrealized loss of $16,802 in the Interim Statements (2022 - $nil).

The activity of investments for the three months ended December 31, 2023 and the year ended September 30, 2023 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2022** | $**3859808** |
| Cash purchases | 9434917 |
| Proceeds from sales | (1591591) |
| Realized loss on sale of investments | (1178765) |
| Net unrealized loss on investments | (4060250) |
| **Balance, September 30, 2023** | $**6464119** |
| Net unrealized gain on investments | 2649011 |
| **Balance, December 31, 2023** | $**9113130** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**8. OTHER ASSETS**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | September 30, |
| | **2023** | 2023 |
| Cryptocurrency mining assets (a) | $**52236** | $60145 |
| Intangible assets (b) | **-** | - |
|  | $**52236** | $60145 |

---

(a) Cryptocurrency mining assets of $52,236 (September 30, 2023 - $60,145) represent the acquisition cost of 25 Bitmain S19J Pro miners (the "Equipment") purchased by the Company during the year ended September 30, 2022 for cash consideration of $376,819, net of accumulated amortization and other adjustments. The Equipment is leased to MineOn LLC, which hosts and operates the machines in Iowa, USA for Cypherpunk pursuant to a managed mining and profit sharing agreement. During the year ended September 30, 2022 the Company determined that the value of the Equipment had declined and an impairment charge of $215,802 was recorded at year end. The Equipment is amortized on a straight line basis from the date of acquisition over its estimated economic useful life of 5 years. During the three- months ended December 31, 2023 the Company recognized amortization expense of $7,909 (2022 - $7,909) for total accumulated amortization of $105,944 (2023 - $74,261).

(b) Intangible assets of $nil (September 30, 2023 - $nil) reflect the disposition of the Company's 24,576 IPv4 addresses (the "Intangible Assets"). The Intangible Assets were purchased by the Company during the year ended September 30, 2021 for cash consideration of $938,582. During the year ended September 30, 2023 the Company sold it Intangible Assets for gross proceeds of $1,172,863 and recognized a gain of $536,633 in the Consolidated Statement of Comprehensive Income. The intangible assets were being amortized on a straight line basis from the date of purchase over the estimated economic useful life of 5 years. During the three months ended December 31, 2023 the Company recognized amortization expense of $nil (2022 - $39,059), reflecting the disposition.

**9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | September 30, |
| | **2023** | 2023 |
| Trade accounts payable | $**122941** | $107025 |
| Accrued liabilities | **49951** | 119451 |
|  | $**172892** | $226476 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**10. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2021** | **159970718** | $**18559920** |
| Warrants exercised | 100000 | 10000 |
| Fair value of warrants exercised |  | 2627 |
| **Balance at September 30, 2022** | **160070718** | $**18572547** |
| Purchase of shares for cancellation | (8003535) | (707765) |
| **Balance at September 30, 2023 and December 31, 2023** | **152067183** | $**17864782** |

---

Pursuant to the terms of a normal course issuer bid (the "NCIB"), during the year ended September 30, 2023, the Company purchased and cancelled 8,003,535 shares.

On October 27, 2021, 100,000 shares were issued in connection with warrants exercised for $10,000. The original fair value of the warrants was $2,627 which amount was transferred from reserves to capital stock.

**11. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period and the board of directors may specify a vesting period on a grant by grant basis.

On November 21, 2022, the Company issued 3,956,500 options for future services to a director and an officer to buy common shares at an exercise price of $0.10 per common share and expiring on November 21, 2027. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on November 21, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.10, dividend yield 0%, expected volatility based on historical volatility of 161.6%, a risk free interest rate of 3.32%, and an expected life of 5 years. The fair value of the options was estimated at $369,925 on that grant date. During the three months ended December 31, 2023, 279,500 options were cancelled. As a result, $37,606 (2022 - $42,305) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

On November 11, 2021, the Company issued 2,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.24 per common share and expiring on November 11, 2026. The stock options vested 25% on each six month anniversary of the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.24, dividend yield 0%, expected volatility based on historical volatility of 207.72%, a risk free interest rate of 1.56%, and an expected life of 5 years. The fair value of the options was estimated at $470,600 on the grant date. During the year ended September 30, 2023, 2,000,000 options were cancelled. As a result, $nil (2022 - $nil) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

On October 7, 2021, the Company issued 1,000,000 options for future services to a director to buy common shares at an exercise price of $0.20 per common share and expiring on October 7, 2026. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on October 7, 2023. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.20, dividend yield 0%, expected volatility based on historical volatility of 207.17%, a risk free interest rate of 1.49%, and an expected life of 5 years. The fair value of the options was estimated at $196,000 on the grant date, of which $470 (2022 - $15,326) was recognized Interim Statements, representing the pro rata value of remaining options that had vested during the period.

On July 7, 2021, the Company issued 8,900,000 options for future services to directors, officers, and consultants to buy common shares at an exercise price of $0.165 per common share and expiring on July 7, 2026. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on July 7, 2023. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.165, dividend yield 0%, expected volatility based on historical volatility of 206.18%, a risk free interest rate of 0.78%, and an expected life of 5 years. The fair value of the options was estimated at $1,438,094 on the grant date. During the year ended September 30, 2023, and the three month period ended December 31, 2023, 2,000,000 and 1,000,000 options were cancelled, respectively. As a result, $nil (2022 - $68,790) was recognized in the Interim Statements, representing the pro rata value of options that had vested during the period.

On April 9, 2021, the Company issued 1,500,000 options for future services to an officer to buy common shares at an exercise price of $0.30 per common share and expiring on April 9, 2026. The stock options vest at 1/3 on the issue date, 1/3 on the first anniversary of the issue date and 1/3 on the second anniversary of the issue date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.25, dividend yield 0%, expected volatility based on historical volatility of 204. 96%, a risk free interest rate of 0.93%, and an expected life of 5 years. The fair value of the options was estimated at $366,213 on the grant date, of which $nil (2022 - $15,384) was recognized in Interim Statements, representing the pro rata value of options that had vested during the period.

The continuity of outstanding stock options for the three months ended December 31, 2023 and the year ended September 30, 2023 is as follows, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** |  | Weighted |
|  |  | **average** |  | average |
|  | **December 31,** | **exercise** | September 30, | exercise |
|  | **2023** | **price** | 2023 | price |
| Beginning balance | **13106500** | **$0.18** | 14050000 | $0.18 |
| Granted | **-** | **$0.10** | 3956500 | $0.23 |
| Cancelled | **(1279500)** | **$0.00** | (4000000) | ($0.18) |
| Expired | **-** | **$0.00** | (900000) | $0.00 |
| **Ending balance - outstanding** | **11827000** | **$0.16** | 13106500 | $0.18 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

The detail of outstanding options at December 31, 2023 and September 30, 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31,** |  | **Exercise** | **September 30,** |  | **Exercise** |
| **Expiry Date** | **2023** | **Exercisable** | **Price** | **2023** | **Exercisable** | **Price** |
| August 28, 2025 | **600000** | **600000** | $**0.10** | 600000 | 600000 | $0.10 |
| December 1, 2025 | **250000** | **250000** | $**0.12** | 250000 | 250000 | $0.12 |
| April 9, 2026 | **1500000** | **1500000** | $**0.30** | 1500000 | 1000000 | $0.30 |
| July 7, 2026 | **4800000** | **4800000** | $**0.17** | 5800000 | 3650000 | $0.17 |
| October 7, 2026 | **1000000** | **1000000** | $**0.20** | 1000000 | 500000 | $0.20 |
| November 21, 2027 | **3677000** | **1838500** | $**0.10** | 3956500 | 989125 | $0.10 |
| **Ending balance - outstanding** | **11827000** | **9988500** |  | **13106500** | **6989125** |  |

---

At December 31, 2023, 9,988,500 options were exercisable at a weighted average price of $0.17 per share (September 30, 2023 - 6,989,125 at $0.17). The weighted average life of the outstanding options is 1.67 years (September 30, 2023 - 1.9 years).

**12. WARRANTS**

In connection with a private placement completed on March 24, 2021, the Company issued 14,705,883 warrants exercisable within 36 months at a price of $0.395 per share. The warrants were assigned a fair value of $2,443,637 using the Black- Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk-free interest rate of 0.49% and an expected life of 3 years.

In connection with the private placement completed on March 24, 2021, the Company issued 2,058,824 broker warrants exercisable within 36 months at a price of $0.425 per share. The warrants were assigned a fair value of $455,542 using the Black-Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk-free interest rate of 0.49% and an expected life of 3 years.

In connection with the private placement completed on January 15, 2021, the Company issued 9,933,735 warrants exercisable within 24 months at a price of $0.25 per share. The warrants were assigned a fair value of $842,368 using the Black-Scholes option pricing model with the following assumptions: share price $0.25, dividend yield 0%, expected volatility, based on historical volatility 173.47%, a risk-free interest rate of 0.15% and an expected life of 2 years.

The continuity of outstanding warrants the three months ended December 31, 2023 and the year ended September 30, 2023, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** |  | Weighted |
|  |  | **average** |  | average |
|  | **December 31,** | **exercise** | September 30, | exercise |
|  | **2023** | **price** | 2023 | price |
| Beginning balance | **16764707** | **$0.40** | 26698442 | $0.33 |
| Expired | **-** | - | (9933735) | $0.10 |
| **Ending balance** | **16764707** | **$0.40** | 16764707 | $0.40 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

The detail of outstanding warrants at December 31, 2023 and the year ended September 30, 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | September 30, | Exercise |
| **Expiry Date** | **2023** | 2023 | Price |
| March 24, 2024 | **14705883** | 14705883 | $0.395 |
| March 24, 2024 | **2058824** | 2058824 | $0.425 |
|  | **16764707** | 16764707 |  |

---

The weighted average life of the outstanding warrants as at December 31, 2023 is 0.23 years (September 30, 2023 - 0.48 years).

**13. RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the three months ended December 31, 2023, the Company paid $18,000 (2022 - $18,000) for consulting services provided by a director and officer of the Company. December 31, 2023, there is $nil (2022 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2023, the Company paid $22,500 (2022 - $15,000) for consulting services provided by an officer of the Company. At December 31, 2023 there is $nil (2022 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2023, the Company paid $30,000 (2022 - $30,000) for consulting services provided by an officer of the Company. At December 31, 2023, there is $30,000 (2022 - $30,000) of accounts payable to this related party.

During the three months ended December 31, 2023, the Company paid $18,000 (2022 - $18,000) for consulting services provided by a director and officer of the Company. At December 31, 2023, there is $nil of accounts payable to this related party (2022 - $nil).

During the three months ended December 31, 2023, the Company paid $nil (2022 - $5,000) for consulting services provided by a director of the Company. At December 31, 2023, there is $nil of accounts payable to this related party (2022 - $nil).

During the three months ended December 31, 2023, $1,025 (2022 - $35,190) was charged for legal services by a firm of which an officer of the Company is a partner. At December 31, 2023, there is $1,361 of accounts payable to this related party (2022 - $nil).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| Three months ended December 31, | **2023** | **2022** |
| Consulting fees | $**88500** | $81000 |
| Director fees | **10000** | 15000 |
| Stock-based compensation | **38076** | 141806 |
|  | $**136576** | $237806 |

---

At December 31, 2023, included in accounts payable and accrued liabilities is $37,745 (2022 - $10,000) owed to related parties.

**14. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017 the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary KRBV for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority has again issued a preliminary assessment and the Company has filed a notice of objection to this assessment. Management believes that this issue will be resolved when the Netherlands tax authority has completed a review of all the facts. As a result, no provision has been made for this reassessment in these Interim Statements.

Disputed Claim for Unpaid Services - During the year ending September 30, 2021, the Company received a claim for unpaid services of 83,731 euros (the "Claim") from a Netherlands based company that had been engaged to provide administrative services to KRBV (the "Engagement"). The Engagement was terminated by the Company on July 29, 2020. The Company has accrued 50,000 euros ($73,980) for the Claim in these Interim Statements. The Company has not received any new information regarding the Claim in during the three months ended December 31, 2023 and believes that the lawsuit is unlikely to result in any liability to the Company.

**15. FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $7795533 | $1317597 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 6437583 |  |
| Cryptocurrencies pledged as collateral | $- | 5680339 |  |
|  | $**-** | $**19913455** | $**1317597** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies | - | 7852418 | - |
|  | $**-** | $**18653654** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

(ii) Valuation *techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

(iii) *Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the three months ended December 31, 2023 and the year ended September 30, 2023.

(iv) *Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Unobservable** |  |
| **Description** | **Fair Value** |  | **Inputs** | **Range of inputs** |
|  | December 31, | September 30, | December 31, | December 31, |
|  | 2023 | 2023 | 2023 | 2023 |
| Investments | $1317597 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at December 31, 2023 and noted that a 20% decrease would result in a $263,519 decrease in fair value.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**16. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company is not subject to capital restrictions other than described in note 11.

There were no changes in the Company's approach to capital management during the three months ended December 31, 2023.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at December 31, 2023, the Company holds $1,940,949 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at December 31, 2023, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $911,313 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of December 31, 2023 is $1,703,453 (September 30, 2022 -

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2023 and 2022**

$1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $170,345 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2023, the Company had cash and cash equivalents balance of $1,940,949 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $172,892 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**17. INCOME TAX**

As at September 30, 2023, the Company recognized a deferred tax asset of $nil (2022 - $201,518) in respect of Canadian non-capital loss carry forwards, leaving approximately $1,285,482 expiring between 2037 and 2040, and a net deferred tax liability of $633,145. The net deferred tax assets which originated during the year ended September 30, 2023 have also not been recognized in the Interim Statements.

**18. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**19. SUBSEQUENT EVENTS**

On February 20, 2024, the Company announced that it intends to commence a normal course issuer bid, under which it may purchase up to 7,603,359 common shares of the Company over a period of one year.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

## Exhibit 99.3

------

![](exhibit99-3x001.jpg)

**MANAGEMENT DISCUSSION AND ANALYSIS**

For the three month period ended December 31, 2023 and 2022

As at February 29, 2024

This Management Discussion and Analysis ("MD&A") has been approved in accordance with a resolution of the Board of Directors of Cypherpunk Holdings Inc. ("Cypherpunk" or, the "Company") dated February 29, 2024. It should be read in conjunction with the interim condensed consolidated financial statements of the Company as at and for the three month period ended December 31, 2023 and 2022 (the "Interim Statements").

**ABOUT CYPHERPUNK HOLDINGS INC.**

Cypherpunk is a publicly traded company that is listed on the Canadian Securities Exchange (CSE) under the ticker HODL.

The Company is an actively managed crypto investment company. The core tenets of its investment thesis are privacy, self- sovereignty, and digital property rights (the "Thesis"). Cypherpunk executes its Thesis through three lines of effort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Treasury management - a core holding of crypto currencies held for long-term appreciation, supported with risk management strategies to reduce volatility, and lending, staking and liquidity provisioning to generate yield;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Private equity focused on early stage companies in the privacy, gaming, DeFi and blockchain sectors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Active investments to generate yield including IPv4 leasing and bitcoin mining.

As at December 31, 2023, the Company had total assets of $24 million and net book value of $23.8 million.

**SIGNIFICANT EVENTS IN THE THREE MONTH PERIOD ENDED DECEMBER 31, 2023**

**Overview**

- Total assets increased $6.9 million from year end to $24 million

- Net book value decreased $7 million to $23.8 million

- Resumption of European call option treasury management strategy

**Treasury Management and Diversified Yield Generation**

*Treasury Management -* The Company resumed its treasury management strategy during the quarter, selling European call options that generated 1.6162 in premiums, paid in Bitcoin, and recognized in other comprehensive income.

*Cryptocurrencies* - At December 31, 2023 the Company had 216.78 Bitcoin (September 30, 2023 - 215.37 Bitcoin) with a cost base of $8.3 million. The increase in Bitcoin is due to the treasury management strategy Bitcoin premium income offset by sale of Bitcoin from mining operations.

**Private Equity and Venture Capital**

*Highlights*

- $2.7 million increase in investments since September 30, 2023 to $9.1 million at December 31, 2023.

- $2.8 million Increase in the fair value of 9.09 million shares of Animoca since September 30, 2023 to $7.8 million at December 31, 2023

- $270,661 realized gain on investment recognized during the three months ended December 30, 2023 (2022 - a realized loss of $471,116), representing the Company's pro rata share of the proceeds realized by Isla Capital Ltd. ("Isla") from the sale of its right to FTX bankruptcy claims (the "Claims").

------

Cypherpunk Holdings Inc. <br>  

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail as at December 31, 2023 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31,** |  | September 30, |
| | **Quantity** | **2023** | Quantity | 2023 |
| Animoca Brands Corporation Limited (a) | **9090909** | $**7795533** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358953** | 19860 | 366932 |
| GOAT Gaming Pte Ltd. (c) | **176470** | **-** | 176470 |  |
| ISLA Digital Strategies SP (d) | **-** | **-** |  |  |
| Lucy Labs Flagship Offshore Fund SPC (e) | **500** | **-** | 500 |  |
| NGRAVE.IO (f) | **138966** | **82799** | 138966 | 80976 |
| Streetside Development, LLC (g) | **1429** | **119979** | 1429 | 122646 |
| zkSNACKS Limited - Shares (h) | **4500** | **755866** | 4500 | 772668 |
|  |  | $**9113130** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). At December 31, 2023 the Company determined the fair value of its Animoca shares was $7,795,533 (September 30, 2023 - $5,120,897) recognizing an unrealized gain of $2,674,636 in the Interim Statements (2022 - $nil).

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also e xercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at December 31, 2023 recognizing an unrealized loss of $7,979 in the Interim Statements (2022 - $nil).

(c) During the year ended September 30, 2022 the Company acquired 176,470 subscription shares of GOAT Gaming Pte Ltd. ("GOAT") for consideration of US$200,000 priced at US$1.13333 per subscription share ($252,695). The Company's management determined that as at September 30, 2023 and 2022, the fair value of GOAT was $nil, and recognized a realized loss of $252,695 in the consolidated statements of comprehensive income for the year ended September 30, 2022.

(d) During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the three months ended December 31, 2023.

(e) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023 and does not expect to recover any amounts from this investment.

(f) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at December 31, 2023 recognizing an unrealized gain of $1,823 in the Interim Statements (2022 - $nil).

(g) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $119,979 as at December 31, 2023 recognizing an unrealized loss of $2,667 in the Interim Statements (2022 - $nil).

(h) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $755,866 as at December 31, 2023 recognizing an unrealized loss of $16,802 in the Interim Statements (2022 - $nil).

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Cypherpunk Holdings Inc. <br>  

**Other Assets**

Other assets declined $7,909 to $52,236 at December 31, 2023 (September 30, 2023 - $60,145), due to the amortization of the Company's cryptocurrency mining assets.

**OVERALL PERFORMANCE**

**Overview**

- Cash position of $1.9 million (September 30, 2023 - $1.9 million)

- Cryptocurrency holdings of $12.1 million (September 30, 2023 - $7.9 million) reflecting:

o An unrealized gain of $4,184,865 (2022 - $nil), recognized in other comprehensive income

o Investment income paid in cryptocurrencies of $94,613, recognized in other comprehensive income

o Cash sales of cryptocurrencies of $18,747, resulting in a gain of $4,773, recognized in other comprehensive income

- Total assets of $24 million (September 30, 2023 - $17.1 million)

- Net book value of $23.8 million (September 30, 2023 - $16.8 million)

- Unrealized gain on investments of $2.7 million, mainly due to the appreciation in value in the Company's Animoca shares

**SELECTED ANNUAL INFORMATION**

Selected audited annual information for the three most recently completed years, all reported under IFRS, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2023** | **2022** | **2021** |
| Total assets | $17054245 | $23892055 | $31230861 |
| Shareholders' equity | 16827769 | 23583763 | 27841541 |
| Income | (4498715) | 3131499 | 406819 |
| Net income | (6282328) | 358456 | (1174497) |
| EPS | $(0.04) | $0.00 | $(0.01) |
| Comprehensive income | (6479174) | (5612877) | 7419378 |

---

**Results of Operations**

*Comparison of the years ended September 30, 2023 and 2022*

The total comprehensive loss for the year ended September 30, 2023 ("Fiscal 2023") increased $866,297 to a loss of $6,479,174 compared to total comprehensive loss of $5,612,877 for the year ended September 30, 2022 ("Fiscal 2022"). The main reasons for the variance are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unrealized loss on investments of $4,060,250 during Fiscal 2023 (2022 - $1,325,836), mainly due to an unrealized loss on Animoca of $4,314,020 in Fiscal 2023. In Fiscal 2022 the unrealized loss was mainly due to losses in the Company's GOAT, Animoca and Ngrave investments totaling $1,325,836.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• During Fiscal 2023 the Company realized a loss on investments of $1,178,765 (2022 - a realized gain of $3,758,852) due to realized losses on ISLA and Lucy Labs during Fiscal 2023. In Fiscal 2022 the realized gain on investments was mainly due to the sale of its Animoca investment of $4,212,365 offset by realized losses on its 168, Panxora and 66 investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company realized on gain on disposition of IPv4 assets during Fiscal 2023 of $536,633 (2022 - $nil).

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Cypherpunk Holdings Inc. <br>  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating expenses in Fiscal 2023 were $1,810,557 (2022 - $2,338,302), the decrease in operating losses was mainly due to:

o Stock-based compensation in Fiscal 2023 of $430,945 (2022 - $1,345,099).

o Consulting fees of $424,735 (2022 - $625,990).

o Foreign exchange loss in Fiscal 2023 of $346,669 (2022 - gain of $715,354).

o Amortization expense of $70,885 (2022 - $255,548).

o Asset impairment in Fiscal 2023 of $nil (2022 - $215,802).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For Fiscal 2023 the loss from items that will not be reclassified to profit and loss of $196,846 (2022 - $5,971,333).

**SELECTED QUARTERLY INFORMATION**

The below selected quarterly information summarizes the financial information for the last eight quarters.

---

| |
|:---|
| Income (loss) before taxes |
| Tax Recovery) |
| Income (loss) for period |
| Net income (loss) per share (basic and diluted) |
| Total comprehensive income (loss) |
| Total assets |
| Net book value |

---

**Results of Operations**

*Comparison of the three months ended December 31, 2023 and 2022*

The total comprehensive income for the three months ended December 31, 2023 ("Q1-24") increased $8.3 million to $6.9 million (2022 - total comprehensive loss of $1.4 million). The main reasons for the increase are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Q1-24 there was other comprehensive income of $4.3 million (2022 - $nil), mainly due to unrealized gains in the Company's Bitcoin holdings described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Q1-24 there was an unrealized gain on investments of $2.7 million (2022 - loss of $471,116) due to the appreciation in the price of Animoca during Q1-24.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Q1-24 there was a realized gain on investments of $270,661 (2022 - loss of $707,649) due to the sale of Isla's FTX bankruptcy claims mentioned above. During the three month period ending December 31, 2022 the Company realized losses on the redemption of its Isla AB Digital Strategy Fund shares and the write down of its Lucy Lab Labs Flagship Offshore Fund SPC investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In Q1-24 operating expenses declined $462,637 to $290,733, mainly due to the following:

o A $110,833 reduction in professional fees

o A $146,714 reduction in foreign exchange loss

o A $103,703 decrease in stock based compensation

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Cypherpunk Holdings Inc. <br>  

**FINANCIAL AND CAPITAL MANAGEMENT**

**Outstanding Share Data**

**At December 31, 2023**

---

| | |
|:---|:---|
| Common shares outstanding: | 152067183.0 |
| Options to purchase common shares: | 11827000.0 |
| Warrants: | 16764707.0 |
| **At February 29, 2024** |  |
| Common shares outstanding: | 152067183.0 |
| Options to purchase common shares: | 11827000.0 |
| Warrants: | 16764707.0 |

---

**Cash Flow**

For the three months ended December 31, 2023, the increase in cash and cash equivalents was $13,669 (2022 -$2,268,096) due to $5,078 of net cash used in operating activities (2022 - $499,393), $18,747 of net cash provided by investing activities (2022 -$2,767,489).

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $7795533 | $1317597 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 6437583 |  |
| Cryptocurrencies pledged as collateral | $- | 5680339 |  |
|  | $**-** | $**19913455** | $**1317597** |
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**18653654** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

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Cypherpunk Holdings Inc. <br>  

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

(ii) Valuation *techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

(iii) *Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the three months ended December 31, 2023 and the year ended September 30, 2023.

(iv) *Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Unobservable** |  |
| **Description** | **Fair Value** | **Fair Value** | **Inputs** | **Range of inputs** |
|  | December 31, | September 30, | December 31, | December 31, |
|  | 2023 | 2023 | 2023 | 2023 |
| Investments | $1317597 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

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Cypherpunk Holdings Inc. <br>  

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at December 31, 2023 and noted that a 20% decrease would result in a $263,519 decrease in fair value.

**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company is not subject to capital restrictions other than described in note 11.

There were no changes in the Company's approach to capital management during the three months ended December 31, 2023.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

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Cypherpunk Holdings Inc. <br>  

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at December 31, 2023, the Company holds $1,940,949 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

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Cypherpunk Holdings Inc. <br>  

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

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Cypherpunk Holdings Inc. <br>  

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at December 31, 2023, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $911,313 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of December 31, 2023 is $1,703,453 (September 30, 2022 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $170,345 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2023, the Company had cash and cash equivalents balance of $1,940,949 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $172,892 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Accounting Policies**

This MD&A should be read in conjunction with the Company's Interim Statements. For additional information on the Company's significant accounting policies, methods and critical accounting estimates and judgments used in preparation of the Company's 2022 consolidated financial statements and notes, please refer to Note 2 of the audited consolidated financial statements as at September 30, 2022. The Interim Statements are presented on a going concern basis. The preparation of financial statements in compliance with IFRS requires the Company's management to make certain estimates and assumptions that they consider reasonable and realistic. Despite regular reviews of these estimates and assumptions, based in particular on past achievements or anticipations, facts and circumstances may lead to changes in these estimates and assumptions which could impact the reported amount of the Company's assets, liabilities, income, and expenses. Actual results may differ from those estimates.

**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements.

**Transactions with Related Parties**

See note 13 of the Interim Statements.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**Other Information**

This discussion and analysis of the financial position and results of operation as at February 29, 2024, should be read in conjunction with the consolidated financial statements for the year ended September 30, 2023 and 2022. Additional information can be accessed through the Company's public filings at <u>www.sedar.com</u>.

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Cypherpunk Holdings Inc. <br>  

**Management's Responsibility for Financial Information**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**Management's Report on Internal Control over Financial Reporting**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

*"Antanas Guoga"*

Chief Executive Officer

February 29, 2024

**Forward-Looking Statements**

*Certain statements included or incorporated by reference in this MD&A, including information as to the future financial or operating performance of the Company, its subsidiaries, and its projects, constitute forward-looking statements. The words "believe", "expect" , "anticipate" , "contemplate" , "target" , "plan", "intends", "continue", "budget", "estimate", "may", "schedule" and similar expressions identify forward-looking statements. This MD&A includes, but is not limited to, forward-looking statements regarding: the Company's ability to meet its working capital needs for the twelve-months ending September 30, 2023 and statements regarding the Company's critical accounting estimates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social uncertainties, and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to additional funding requirements, political and foreign risk, uninsurable risks, competition, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs and dependence on key employees. See "Risk and Uncertainties" section of this MD&A. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this MD&A and the Company disclaims any intent or obligation to update publicly such forward- looking statements, whether as a result of new information, future events, or results or otherwise.*

------

## Exhibit 99.4

------

**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

**I, Douglas Harris, Chief Financial Officer of Cypherpunk Holdings Inc., certify the following:**

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **December 31, 2023**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.<br>

Date: February 29, 2024.

*Signed "Douglas Harris"*

*_________________________________________*

Doug Harris

Chief Financial Officer

&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

------

## Exhibit 99.5

------

**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

**I, Antanas Guoga, Chief Executive Officer of Cypherpunk Holdings Inc.,** certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **December 31, 2023**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.<br>

Date: February 29, 2024.

*Signed "Antanas Guoga"*

*_________________________________________*

Antanas Guoga

Chief Executive Officer

&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

------

## Exhibit 99.6

------

![](exhibit99-6x001.jpg)

**CYPHERPUNK HOLDINGS ANNOUNCES STRATEGIC SHIFT**

**Toronto, Ontario - March 11, 2024 - Cypherpunk Holdings Inc. (the "Company") (CSE: HODL) (OTC: CYFRF)**, announces a strategic shift in focus. Acknowledging the evolution of the digital asset landscape, notably with the introduction of Bitcoin ETFs in 2024, the Company recognizes the reduced demand for its original business model.

In a strategic response to the changing dynamics of investment in digital assets and recognizing the broadening spectrum of investment opportunities, Cypherpunk Holdings is inviting additional opportunities in high-growth sectors, including emerging technologies, biotechnology, and other relevant sectors that stand at the forefront of innovation and market disruption (the "**Sectors**"). This new direction signifies an openness to explore and engage in ventures that stand to benefit significantly from the Company's deep industry knowledge, commitment to innovation, and considerable cash reserves. The focus is on identifying companies with the potential for public market success, where the Company's involvement could act as a catalyst for accelerated business development and expansion.

The Board of Directors, working with management and its advisors, will consider a full range of strategic alternatives, including a reverse takeover, sale, merger, material investments, and other significant transactions with companies operating in the Sectors with an equity value greater than $25 million. Interested parties are encouraged to contact <u>ir@cypherpunkholdings.com</u>.

**Current Assets**

The Company wishes to provide an update regarding its current assets as of March 11<sup>th</sup>, 2024. Through its option writing program, the Company converted 50 Bitcoin to USD at an average rate of USD$60,000 plus net premiums received of 2.8822 Bitcoin. The Company also received a 0.9 BTC dividend from its ownership stake in zkSnacks Limited.

---

| | | |
|:---|:---|:---|
| Cash and Cash Equivalents | USD $5,797,216 | CAD $7,884,214 |
| 164.11 Bitcoin | USD $11,785,417 | CAD $16,028,167 |
| Shares of Animoca Brands Inc | USD $5,686,939 | CAD $7,685,053 |
| Other assets \* | USD $1,013,676 | CAD $1,369,833 |
| **Total** | **USD $24,283,249** | **CAD $32,967,267** |

---

The table above indicates values as of the date of this release, including any sold Bitcoin. Values are converted from CAD to USD at a rate of 0.74. Bitcoin is referenced at USD $71,815.00.

\* Other assets include equity ownership in Chia Networks Inc, Samourai Wallet, Wasabi Wallet, NGRAVE, as well as 25 S19J pro Bitcoin miners. Values of these positions, as well as Animoca Brands, are as of

December 31, 2023 as indicated in the Company's financial statements

------

![](exhibit99-6x002.jpg)

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings was established to invest in companies, technologies and protocols, which enhance or protect privacy. Its strategy is to make targeted investments in businesses and assets with strong privacy attributes, often within the blockchain ecosystem, including select cryptocurrencies. Current equity investments include Animoca Brands, Samourai Wallet, Wasabi Wallet, Chia and NGRAVE.

**Cautionary Note Regarding Forward-Looking Information: in**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

*There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

---

| |
|:---|
| **Officer/Director Contact** |
| Moe Adham |
| <u>ir@cypherpunkholdings.com</u> |
| Office: 1-647-946-1300 |

---

------

## Exhibit 99.7

------

![](exhibit99-7x001.jpg)

**Cypherpunk Announces Corporate Update on Current Holdings**

Sale of Animoca Brand Shares & Bitcoin

**TORONTO, ONTARIO, Friday May 10, 2024. - Cypherpunk Holdings Inc. (CSE: HODL, OTC: CYFRF)** **("** **Cypherpunk** **"** or, the **"Company** **")** would like to announce an update on the Company's holdings.

**<u>Sale of Animoca Brand Shares</u>**

The Company is pleased to announce that it has disposed of an additional 2,225,678 million ordinary shares of Animoca Brands Corporation Limited ("Animoca Brands") through secondary market trades to hold 4,365,231 ordinary shares. The Company received an aggregate purchase price of AUD $2,003,110 million for this sale.

**<u>Sale of Bitcoin</u>**

The company has discontinued its option writing program and currently holds 117.09 Bitcoin.

**<u>Other Investments:</u>**

The Company maintains its other equity investments in Chia Networks Inc, and NGRAVE. The company also owns approximately 2500 TH of mining hardware which continues to be operated under contract by MineOn LLC (dba MiningStore).

**<u>Current Assets</u>**

---

| | |
|:---|:---|
| Cash and Cash Equivalents | CAD $13,525,009 |
| 117.09 Bitcoin | CAD $9,703,596 |
| 4,364,322 Shares of Animoca Brands Inc | CAD $3,505,193 |
| Other assets | CAD $1,317,597 |
| **Total** | **CAD $28,103,631** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Values as of April 30th 2024

------

![](exhibit99-7x002.jpg)

**About Cypherpunk Holdings Inc.**

Cypherpunk was established to invest in currencies, companies, technologies and protocols, which enhance or protect privacy. Its strategy is to make targeted investments in businesses and assets with strong privacy attributes, often within the blockchain ecosystem, including select cryptocurrencies. Current equity investments include Chia and NGRAVE.

**Cautionary Note Regarding Forward-Looking Information**

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking information includes, but is not limited to the Company's expectation or belief regarding its investment in shares of Animoca Brand and Animoca Brand's future performance or business. . There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward- looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

---

| |
|:---|
| **Officer/Director Contact:** |
| Doug Harris |
| Chief Financial Officer |
| doug@cypherpunkholdings.com |
| Tel: 647-946-1300 |

---

------

## Exhibit 99.8

------

![](exhibit99-8x001.jpg)

**VIA ELECTRONIC TRANSMISSION**

May 27, 2024

**TO ALL APPLICABLE EXCHANGES AND COMMISSIONS:**

---

| | |
|:---|:---|
| **RE:** | **CYPHERPUNK HOLDINGS INC.** |
|  | **Confirmation of Notice of Record and Meeting Dates**<u> </u> |

---

We are pleased to confirm that Notice of Record and Meeting Dates was sent to The Canadian Depository for Securities.

We advise the following with respect to the upcoming Annual and Special Meeting of Security Holders for the subject issuer:

---

| | | |
|:---|:---|:---|
| 1 | ISIN: | CA2326621067 |
|  | CUSIP: | 232662106 |
| 2 | Date Fixed for the Meeting: | July 30, 2024 |
| 3 | Record Date for Notice: | June 21, 2024 |
| 4 | Record Date for Voting: | June 21, 2024 |
| 5 | Beneficial Ownership Determination Date: | June 21, 2024 |
| 6 | Classes or Series of Securities that entitle the holder to receive Notice of the Meeting: | COMMON SHARES |
| 7 | Classes or Series of Securities that entitle the holder to vote at the meeting: | COMMON SHARES |
| 8 | Business to be conducted at the meeting: | Annual and Special |
| 9 | Notice-and-Access: |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registered Shareholders: | NO |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beneficial Holders: | NO |
|  | Stratification Level: | Not Applicable |
| 10 | Reporting issuer is sending proxy-related materials directly to Non-Objecting Beneficial Owners: | YES |
| 11 | Issuer paying for delivery to Objecting Beneficial Owners: | YES |

---

Yours truly,

**TSX Trust Company** <br>

---

| | | | |
|:---|:---|:---|:---|
| **VANCOUVER**<br> 733 Seymour Street,<br>Suite #2310<br>Vancouver, BC V6B 0S6 | **CALGARY**<br> Telus Sky Building<br>2110, 685 Centre Street SW<br>Calgary Alberta T2G 1S5 | **TORONTO**<br> 301 - 100 Adelaide Street West<br>Toronto ON M5H 4H1 | **MONTRÉAL**<br> 1701 - 1190, avenue des<br>Canadiens-de-Montréal, C. P. 37<br>Montréal (Québec) H3B 0G7 |
|  |  | **Toll Free** 1-866-600-5869 |  |
| **T** 604 689-3334 | **T** 403 218-2800 | **T** 416 361-0930 | **T** 514 395-5964 |

---

------

## Exhibit 99.9

------

![](exhibit99-9x001.jpg)

**INTERIM CONDENSED CONSOLIDATED**

**FINANCIAL STATEMENTS**

**FOR THE SIX MONTHS ENDED**

**MARCH 31, 2024 AND 2023**

**(Unaudited - Expressed in Canadian Dollars)**

------

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying unaudited interim condensed consolidated financial statements of Cypherpunk Holdings Inc. for the six months end March 31, 2024 (the "Interim Statements) were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the note 2 of these Interim Statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at March 31, 2024.

**CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES**

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officers, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at March 31, 2024.

**NOTICE TO READER**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying Interim Statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these Interim Statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of financial statements by an entity's auditor.

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **March 31,**<br>**2024** | **September 30,**<br>**2023** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 3) | $**7596275** | $1927280 |
| Receivables and prepaid expenses (note 4) | **102124** | 117138 |
|  | **7698399** | 2044418 |
| Cryptocurrencies pledged as collateral (note 5 and 6) | **4846860** |  |
| Cryptocurrencies (note 6) | **11217175** | 7852418 |
| Investments (note 7) | **6902680** | 6464119 |
| Other assets (note 8) | **44327** | 60145 |
| Deferred tax asset (note 17) | **633145** | 633145 |
|  | $**31342586** | $17054245 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (note 9 and 14) | $**173401** | $226476 |
|  | **173401** | 226476 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 10) | **17478896** | 17864782 |
| Reserves | **17731815** | 17669046 |
| Accumulated other comprehensive income (loss) | **9826431** | (196846) |
| Accumulated deficit | **(13867957)** | (18509213) |
|  | **31169185** | 16827769 |
|  | $**31342586** | $17054245 |

---

Nature of operations and going concern (note 1)

Subsequent events (note 19)

SIGNED ON BEHALF OF THE BOARD

*(Signed) "Rubsun Ho"* *(Signed) "Moe Adham"* <br> Director Director

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| | **2024** | 2023 | **2024** | 2023 |
| **Income (loss)** |  |  |  |  |
| Unrealized gain (loss) on investments (note 7) | $**384152** | $290060 | $**3033163** | $290060 |
| Realized (loss) on investments (note 7) | **(630352)** |  | **(359691)** | (1178765) |
| Other income | **90644** | 90522 | **101095** | 133199 |
| Dividend income | **88606** | 13773 | **91219** | 17640 |
| Realized gain on disposition of assets (Note 8) | **-** | - | **-** | 536633 |
|  | **(66950)** | 394355 | **2865786** | (201233) |
| **Expenses** |  |  |  |  |
| Consulting fees (note 13) | **88827** | 104750 | **195187** | 221664 |
| Professional fees (note 13) | **41401** | 71149 | **85867** | 226448 |
| General and administrative | **36127** | 17091 | **75534** | 103401 |
| Stock-based compensation (notes 11 and 13) | **24693** | 156182 | **62769** | 297988 |
| Director fees (note 13) | **9702** | 15000 | **20000** | 30000 |
| Amortization (note 8) | **7909** | 7909 | **15818** | 55019 |
| Foreign exchange (gain) loss | **(34365)** | 150591 | **9852** | 341522 |
|  | **174294** | 522672 | **465027** | 1276042 |
| **Income (loss) for the period** | **(241244)** | (128317) | **2400759** | (1477275) |
| **Other comprehensive income** |  |  |  |  |
| Items that may be reclassified to profit or loss | **5743799** | 63105 | **10023277** | 63105 |
| Items that will not be reclassified to profit or loss | **2235724** | - | **2240497** | - |
| **Total comprehensive income (loss)** | $**7738279** | $(65212) | $**14664533** | $(1414170) |
| **Earnings (loss) per share - basic and diluted** | $**-** | $- | $**0.02** | $(0.01) |
| **Weighted average number of shares outstanding - basic and diluted** | 151866655 | 157134949 | 151967467 | 159664125 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Common**<br>**Shares** | <br>**Capital**<br>**Stock** | <br>**Reserves** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income** | <br>**Retained**<br>**Deficit** | <br>**Total** |
| **Balance, September 30, 2022** | **160070718** | $**18572547** | $**17238101** | $**-** | $**(12226885)** | $**23583763** |
| Stock-based compensation (note 11) |  |  | 297988 |  |  | 297988 |
| Purchase of shares for cancellation (note 10) | (2960000) | (256355) |  |  |  | (256355) |
| Unrealized gain on cryptocurrencies |  |  |  | 63105 |  | 63105 |
| Net loss for the period | - | - | - | - | (1477276) | (1477276) |
| **Balance, March 31, 2023** | **157110718** | $**18316192** | $**17536089** | $**63105** | $**(13704161)** | $**22211225** |
| Stock-based compensation (note 11) |  |  | 132957 |  |  | 132957 |
| Purchase of shares for cancellation (note 10) | (5043535) | (451410) |  |  |  | (451410) |
| Net loss for the period |  |  |  |  | (4805052) | (4805052) |
| Items that may be reclassified to profit or loss | - | - | - | (259951) | - | (259951) |
| **Balance, September 30, 2023** | **152067183** | $**17864782** | $**17669046** | $**(196846)** | $**(18509213)** | $**16827769** |
| Stock-based compensation (note 11) |  |  | 62769 |  |  | 62769 |
| Purchase of shares for cancellation (note 10) | (3041343) | (385886) |  |  |  | (385886) |
| Net income for the period |  |  |  |  | 2400759 | 2400759 |
| Items that may be reclassified to profit or loss |  |  |  | 12263774 |  | 12263774 |
| Items reclassified to retained earnings | - | - | - | (2240497) | 2240497 | - |
| **Balance, March 31, 2024** | **149025840** | $**17478896** | $**17731815** | $**9826431** | $**(13867957)** | $**31169185** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Six months ended March 31,** | **2024** | **2023** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| Income (loss) for the period | $**2400759** | $(1477276) |
| **Adjustments for:** |  |  |
| Unrealized (gain) loss on investments | **(3033163)** | (290060) |
| Realized loss (gain) on investments | **359691** | 1178765 |
| Realized (gain) loss on sale of assets |  | (536633) |
| Stock-based compensation | **62769** | 297988 |
| Asset impairment | **-** | 2837 |
| Interest | **-** | 20078 |
| Foreign exchange loss | **9852** | 341522 |
| Other non-cash (income) loss | **(154855)** | (79007) |
| Amortization of assets sold | **-** | (302352) |
| Amortization | **15818** | 55019 |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **15014** | 61404 |
| Treasury management assets | **-** | 60037 |
| Accounts payable and accrued liabilities | **(53075)** | (51233) |
| **Cash used in operating activities** | **(377190)** | (718911) |
| **Financing activities** |  |  |
| Purchase of shares for cancellation | **(385886)** | (256355) |
| **Cash provided by financing activities** | **(385886)** | (256355) |
| **Investing activities** |  |  |
| Purchase of cryptocurrencies | **-** | (2592982) |
| Proceeds from sale of cryptocurrencies | **4197160** | 19156 |
| Proceeds from sale of assets | **-** | 1172863 |
| Purchase of investments | **-** | (9434917) |
| Sale/redemption of investments | **2234911** | 1591591 |
| **Cash used in investing activities** | **6432071** | (9244289) |
| **Change in cash and cash equivalents** | **5668995** | (10219555) |
| **Cash and cash equivalents, beginning of the period** | **1927280** | 18537221 |
| **Cash and cash equivalents, end of the period** | $**7596275** | $8317666 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Cypherpunk Holdings Inc. (the "Company" or "Cypherpunk") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company's business plan is based on its investment thesis that there will be increasing demand for technologies and cryptocurrencies with strong privacy, self-sovereignty, and digital property rights (the "Thesis"). Cypherpunk executes its Thesis through three lines of effort: (1) Treasury management and diversified yield generation - a core holding of crypto currencies supported with risk management strategies to reduce volatility, and lending, staking and liquidity provisioning to generate yield; (2) Private equity focused on early stage companies in the privacy, gaming, DeFi and blockchain sectors; and (3) Active investments to generate yield including bitcoin mining. The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 16). Additionally, during the six months ended March 31, 2024, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

These unaudited interim condensed consolidated financial statements for the six months ended March 31, 2024 (the "Interim Statements") have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other assets to supports its operations for the next twelve months from the date of the issuance of the Interim Statements.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Statement of Compliance**

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. These Interim Statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

The policies applied in these Interim Statements are based on IFRSs issued and outstanding as of May 29, 2024, the date the Board of Directors approved the Interim Statements. The same accounting policies and methods of computation are followed in these Interim Statements as compared with the most recent audited annual financial statements as at and for the year ended September 30, 2023. Any subsequent changes to IFRS that are given effect in the Company's annual financial statements for the year ending September 30, 2024 could result in restatement of these Interim Statements.

**3. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at March 31, 2024 and September 30, 2023.

---

| | | |
|:---|:---|:---|
| | **March 31,**<br>**2024** | September 30,<br>2023 |
| Cash in banks | $**7596275** | $1927280 |
|  | $**7596275** | $1927280 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**4. RECEIVABLES AND PREPAID EXPENSES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **March 31,**<br>**2024** | September 30,<br>2023 |
| Prepaid expenses | $**22434** | $54477 |
| Harmonized sales tax | **79690** | 62661 |
|  | $**102124** | $117138 |

---

**5. TREASURY MANGEMENT INVESTMENTS**

During the six months ended March 31, 2024 the Company resumed its treasury management investment strategy to generate income on its cryptocurrency assets, previously executed during the year ended September 30, 2022. As at the date hereof, the treasury management investment strategy involves selling covered European call options (each, an "Option") on OTC markets. During the six months ended March 31, 2024, the Company transferred 50 Bitcoin to each of Zerocap Pty Ltd. ("Zerocap") and Wintermute Trading Ltd. ("Wintermute") to use as collateral. The Company recognizes premium income upon the sale of an Option. In the event the Option expires in-the-money, the Company's underlying Bitcoin used as collateral to sell the Option are sold at the strike price of the Option. There were no Options written during the year ended September 30, 2023. Prior to March 31, 2024, 51.3566 Bitcoin held at Zerocap were sold to hold nil Bitcoin. The open treasury management trades at March 31, 2024 are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Trading**<br>**Platform** | **Bought/**<br>**Sold** | <br>**Trade Date** | **Crypto-**<br>**currency** | <br>**Expiry** | **Strike**<br>**(USD)** | **Premium**<br>**(Bitcoin)** | **Bitcoin**<br>**Pledged** |
| Wintermute Trading Ltd Call | Sold | 29-Mar-24 | Bitcoin | 5-Apr-24 | $77000 | 0.35710 | 49.79 |

---

**6. CRYPTOCURRENCIES**

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 166.20 | $**4651418** | $**6295057** | $**16064036** |
| **Balance at March 31, 2024** |  | $**4651418** | $**6295057** | $**16064036** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 215.37 | $**6038069** | $**8172065** | $**7852418** |
| **Balance at September 30, 2023** |  | $**6038069** | $**8172065** | $**7852418** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

The activity of the Company's cryptocurrencies, excluding the Bitcoin posted as collateral at Wintermute and Zerocap (Note 5), for the six months ended March 31, 2024 and the year ended September 30, 2023 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022** | $**3035** |
| Cash purchases | 8120383 |
| Cash sales | (19620) |
| Investment income received in cryptocurrencies | 31625 |
| Dividend income received in cryptocurrencies | 36642 |
| Change in fair value | (319647) |
| **Balance at September 30, 2023** | $**7852418** |
| Cash sales | (28882) |
| Gain on cash sales | 4564 |
| Investment income received in cryptocurrencies | 104018 |
| Cryptocurrencies posted as collateral | (3794250) |
| Change in fair value | 7079307 |
| **Balance at March 31, 2024** | $**11217175** |

---

The activity of the Company's cryptocurrencies posted as collateral (note 5) for the six months ended March 31, 2024 and year ended September 30, 2023, is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022 and September 30, 2023** | $**-** |
| Cryptocurrencies posted as collateral | 3794250 |
| Investment income received in cryptocurrencies | 57961 |
| Cash sales | (4168278) |
| Gain on cash sales | 2235225 |
| Foreign exchange gain | (17335) |
| Change in fair value | 2945037 |
| **Balance at March 31, 2024** | $**4846860** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**7. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **March 31,**<br>**2024** | <br>Quantity | September 30,<br>2023 |
| Animoca Brands Corporation Limited (a) | **6590909** | $**5585084** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358952** | 19860 | 366932 |
| Lucy Labs Flagship Offshore Fund SPC (c) | **500** | **-** | 500 |  |
| NGRAVE.IO (d) | **138966** | **82799** | 138966 | 80976 |
| Streetside Development, LLC (e) | **1429** | **119979** | 1429 | 122646 |
| zkSNACKS Limited - Shares (f) | **4500** | **755866** | 4500 | 772668 |
|  |  | $**6902680** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). During the six months ended March 31, 2024, the Company sold 2,500,000 Animoca shares at a price of AUD $0.90 per share ($0.79 CAD) for net proceeds of AUD $2,250,000 ($1,964,250 CAD) At March 31, 2024 the Company determined the fair value of its remaining 6,590,909 Animoca shares to be $5,585,087 (September 30, 2023 - $5,120,897) recognizing an unrealized gain of $3,058,789 in the Interim Statements (2023 - $316,904).

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at March 31, 2024 recognizing an unrealized loss of $7,979 in the Interim Statements (2022 - $nil).

(c) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023. See also Note 19.

(d) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at March 31, 2024 recognizing an unrealized gain of $1,823 in the Interim Statements (2022 - $nil).

(e) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $119,979 as at March 31, 2024 recognizing an unrealized loss of $2,667 in the Interim Statements (2022 - $nil).

(f) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $755,866 as at March 31, 2024 recognizing an unrealized loss of $16,802 in the Interim Statements (2022 - $nil).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

(2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the six months ended March 31, 2024.

The activity of investments for the six months ended March 31, 2024 and the year ended September 30, 2023 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2022** | $**3859808** |
| Cash purchases | 9434917 |
| Proceeds from sales | (1591591) |
| Realized loss on sale of investments | (1178765) |
| Net unrealized loss on investments | (4060250) |
| **Balance, September 30, 2023** | $**6464119** |
| Proceeds from sales | (2234911) |
| Realized loss on sale of investments | (359691) |
| Net unrealized gain on investments | 3033163 |
| **Balance, March 31, 2024** | $**6902680** |

---

**8. OTHER ASSETS**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **March 31,**<br>**2024** | September 30,<br>2023 |
| Cryptocurrency mining assets (a) | $**44327** | $60145 |
|  | $**44327** | $60145 |

---

(a) Cryptocurrency mining assets of $44,327 (September 30, 2023 - $60,145) represent the acquisition cost of 25 Bitmain S19J Pro miners (the "Equipment") purchased by the Company during the year ended September 30, 2022 for cash consideration of $376,819, net of accumulated amortization and other adjustments. The Equipment is leased to MineOn LLC, which hosts and operates the machines in Iowa, USA for Cypherpunk pursuant to a managed mining and profit sharing agreement. During the year ended September 30, 2022 the Company determined that the value of the Equipment had declined and an impairment charge of $215,802 was recorded at year end. The Equipment is amortized on a straight line basis from the date of acquisition over its estimated economic useful life of 5 years. During the six-months ended March 31, 2024 the Company recognized amortization expense of $15,818 (2023 - $15,818) for total accumulated amortization of $105,944 (2023 - $82,169).

**9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

---

| | | |
|:---|:---|:---|
| The balances are comprised as follows: |  |  |
|  | **March 31,** | September 30, |
|  | **2024** | 2023 |
| Trade accounts payable | $**89403** | $107025 |
| Accrued liabilities | **54000** | 119451 |
|  | $**143403** | $226476 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**10. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2022** | **160070718** | $**18572547** |
| Purchase of shares for cancellation | (8003535) | (707765) |
| **Balance at September 30, 2023** | **152067183** | $**17864782** |
| Purchase of shares for cancellation | (3041343) | (385886) |
| **Balance at March 31, 2024** | **149025840** | $**17478896** |

---

Pursuant to the terms of a normal course issuer bid, during the six months ended March 31, 2024, the Company purchased and cancelled 3,041,343 shares (2023 - 2,960,000).

During the year ended September 30, 2023, pursuant to the terms of a normal course issuer bid, the Company purchased and cancelled 8,003,535 shares.

**11. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period and the board of directors may specify a vesting period on a grant by grant basis. As at March 31, 2024, the maximum number of shares issuable pursuant to the Plan was 14,902,584, of which 11,827,000 shares had been granted, leaving 3,075,584 shares available for issue

On November 21, 2022, the Company issued 3,956,500 options for future services to a director and an officer to buy common shares at an exercise price of $0.10 per common share and expiring on November 21, 2027. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on November 21, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.10, dividend yield 0%, expected volatility based on historical volatility of 161.6%, a risk free interest rate of 3.32%, and an expected life of 5 years. The fair value of the options was estimated at $369,925 on that grant date. During the six months ended March 31, 2024, 279,500 options were cancelled. As a result, $37,606 (2022 - $42,305) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

On November 11, 2021, the Company issued 2,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.24 per common share and expiring on November 11, 2026. The stock options vested 25% on each six month anniversary of the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.24, dividend yield 0%, expected volatility based on historical volatility of 207.72%, a risk free interest rate of 1.56%, and an expected life of 5 years. The fair value of the options was estimated at $470,600 on the grant date. During the year ended September 30, 2023, 2,000,000 options were cancelled. As a result, $nil (2022 - $nil) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

The continuity of outstanding stock options for the six months ended March 31, 2024 and the year ended September 30, 2023 is as follows, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**March 31,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **13106500** | $**0.18** | 14050000 | $0.18 |
| Granted | **-** | $**0.10** | 3956500 | $0.23 |
| Cancelled | **(1279500)** | $**0.00** | (4000000) | ($0.18) |
| Expired | **-** | $**0.00** | (900000) | $0.00 |
| **Ending balance - outstanding** | **11827000** | $**0.16** | 13106500 | $0.18 |

---

The detail of outstanding options at March 31, 2024 and September 30, 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Expiry Date** | **March 31,**<br>**2024** | <br>**Exercisable** | **Exercise**<br>**Price** | **September 30,**<br>**2023** | <br>**Exercisable** | **Exercise**<br>**Price** |
| August 28, 2025 | **600000** | **600000** | $**0.10** | 600000 | 600000 | $0.10 |
| December 1, 2025 | **250000** | **250000** | $**0.12** | 250000 | 250000 | $0.12 |
| April 9, 2026 | **1500000** | **1500000** | $**0.30** | 1500000 | 1000000 | $0.30 |
| July 7, 2026 | **4800000** | **4800000** | $**0.17** | 5800000 | 3650000 | $0.17 |
| October 7, 2026 | **1000000** | **1000000** | $**0.20** | 1000000 | 500000 | $0.20 |
| November 21, 2027 | **3677000** | **1698750** | $**0.10** | 3956500 | 989125 | $0.10 |
| **Ending balance - outstanding** | **11827000** | **9848750** |  | **13106500** | **6989125** |  |

---

At March 31, 2024, 9,988,500 options were exercisable at a weighted average price of $0.17 per share (September 30, 2023 - 6,989,125 at $0.17). The weighted average life of the outstanding options is 1.50 years (September 30, 2023 - 1.9 years).

**12. WARRANTS**

In connection with a private placement completed on March 24, 2021, the Company issued 14,705,883 warrants exercisable within 36 months at a price of $0.395 per share. The warrants were assigned a fair value of $2,443,637 using the Black-Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk- free interest rate of 0.49% and an expected life of 3 years.

In connection with the private placement completed on March 24, 2021, the Company issued 2,058,824 broker warrants exercisable within 36 months at a price of $0.425 per share. The warrants were assigned a fair value of $455,542 using the Black-Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk-free interest rate of 0.49% and an expected life of 3 years.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

The continuity of outstanding warrants the six months ended March 31, 2024 and the year ended September 30, 2023, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**March 31,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **16764707** | $**0.40** | 26698442 | $0.33 |
| Expired | **(16764707)** | **-$0.40** | (9933735) | $0.10 |
| **Ending balance** | **-** | $**0.00** | 16764707 | $0.40 |

---

The detail of outstanding warrants at March 31, 2024 and the year ended September 30, 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,** | September 30, | Exercise |
| **Expiry Date** | **2024** | 2023 | Price |
| March 24, 2024 | **-** | 14705883 | $0.395 |
| March 24, 2024 | **-** | 2058824 | $0.425 |
|  | **-** | 16764707 |  |

---

The weighted average life of the outstanding warrants as at March 31, 2024 is nil years (September 30, 2023 - 0.48 years).

**13. RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the six months ended March 31, 2024, the Company paid $36,000 (2023 - $36,000) for consulting services provided by a director and officer of the Company. March 31, 2024, there is $nil (2022 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2024, the Company paid $22,500 (2023 - $15,000) for consulting services provided by an officer of the Company. At March 31, 2024 there is $nil (2022 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2024, the Company paid $60,000 (2023 - $60,000) for consulting services provided by an officer of the Company. At March 31, 2024, there is $30,000 (2023 - $30,000) of accounts payable to this related party.

During the six months ended March 31, 2024, the Company paid $36,000 (2023 - $36,000) for consulting services provided by a director and officer of the Company. At March 31, 2024, there is $nil of accounts payable to this related party (2022 - $nil).

During the six months ended March 31, 2024, the Company paid $nil (2023 - $5,000) for consulting services provided by a director of the Company. At March 31, 2024, there is $nil of accounts payable to this related party (2023 - $5,650).

During the six months ended March 31, 2024, $5,981 (2023 - $38,994) was charged for legal services by a firm of which an officer of the Company is a partner. At March 31, 2024, there is $nil of accounts payable to this related party (2023 - $39,765).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| Six months ended March 31, | **2024** | **2023** |
| Consulting fees | $**177000** | $167000 |
| Director fees | **20000** | 30000 |
| Stock-based compensation | **62769** | 297988 |
|  | $**259769** | $494988 |

---

At March 31, 2024, included in accounts payable and accrued liabilities is $36,384 (2023\ - $86,415) owed to related parties.

**14. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017 the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary KRBV for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority has again issued a preliminary assessment and the Company has filed a notice of objection to this assessment. Management believes that this issue will be resolved when the Netherlands tax authority has completed a review of all the facts. As a result, no provision has been made for this reassessment in these Interim Statements.

Disputed Claim for Unpaid Services - During the year ending September 30, 2021, the Company received a claim for unpaid services of 83,731 euros (the "Claim") from a Netherlands based company that had been engaged to provide administrative services to KRBV (the "Engagement"). The Engagement was terminated by the Company on July 29, 2020. The Company has accrued 50,000 euros ($73,980) for the Claim in these Interim Statements. The Company has not received any new information regarding the Claim in during the six months ended March 31, 2024 and believes that the lawsuit is unlikely to result in any liability to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**15. FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5585084 | $1317596 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 11217175 |  |
| Cryptocurrencies pledged as collateral | $- | 4846860 |  |
|  | $**-** | $**21649119** | $**1317596** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the six months ended March 31, 2024 and the year ended September 30, 2023.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>&nbsp;&nbsp;&nbsp;**Range of inputs** |
|  | March 31, | September 30, | March 31, | &nbsp;&nbsp;March 31, |
|  | 2024 | 2023 | 2024 | &nbsp;&nbsp;2024 |
| Investments | $1317596 | $1343222 | (a) and (b) | &nbsp;&nbsp;N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at March 31, 2024 and noted that a 20% decrease would result in a $263,519 decrease in fair value.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**16. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the six months ended March 31, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at March 31, 2024, the Company holds $7,596,275 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Six Months Ended March 31, 2024 and 2023**

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at March 31, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $690,268 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of March 31, 2024 is $5,684,038 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $568,404 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2024, the Company had cash and cash equivalents balance of $7,596,275 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $173,401 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**17. INCOME TAX**

As at September 30, 2023, the Company recognized a deferred tax asset of $nil (2022 - $201,518) in respect of Canadian non-capital loss carry forwards, leaving approximately $1,285,482 expiring between 2037 and 2040, and a net deferred tax asset of $633,145. The net deferred tax assets which originated during the year ended September 30, 2023 have also not been recognized in the Interim Statements.

**18. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**19. SUBSEQUENT EVENTS**

On April 9, 2024, the Company cancelled 299,500 common shares purchased pursuant to the NCIB.

On April 26, 2024, the Company cancelled 2,764,500 common shares purchased pursuant to the NCIB.

On April 30, 2024, based on recent events pertaining to Streetside, the Company wrote its investment in Streetside down to $nil.

On May 15, 2024, zkSNACKS, based on recent events pertaining to zkSNACKS, the Company wrote its investment in zkSNACKS down to $nil.

On May 15, 2024, the Company was advised that it would recover approximately US$500,000 on its investment in Lucy Labs that had previously been written off pursuant to the FTX bankruptcy (Note 7 (c)).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

## Exhibit 99.10

------

![](exhibit99-10x001.jpg)

**MANAGEMENT DISCUSSION AND ANALYSIS**

For the six months ended March 31, 2024 and 2023

As at May 29, 2024

This Management Discussion and Analysis ("MD&A") has been approved in accordance with a resolution of the Board of Directors of Cypherpunk Holdings Inc. ("Cypherpunk" or, the "Company") dated May 29, 2024. It should be read in conjunction with the unaudited interim condensed consolidated financial statements of the Company as at and for the six month period ended March 31, 2024 and 2023 (the "Interim Statements").

**ABOUT CYPHERPUNK HOLDINGS INC.**

Cypherpunk is a publicly traded company that is listed on the Canadian Securities Exchange (CSE) under the ticker HODL.

The Company is an actively managed crypto investment company. The core tenets of its investment thesis are privacy, self- sovereignty, and digital property rights (the "Thesis"). Cypherpunk executes its Thesis through three lines of effort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Treasury management - a core holding of crypto currencies held for long-term appreciation, supported with risk management strategies to reduce volatility, and lending, staking and liquidity provisioning to generate yield;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Private equity focused on early stage companies in the privacy, gaming, DeFi and blockchain sectors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Active investments to generate yield including bitcoin mining.

As at March 31, 2024, the Company had total assets of $31.3 million and net book value of $31.2 million.

**SIGNIFICANT EVENTS IN THE SIX MONTH PERIOD ENDED MARCH 31, 2024**

**Overview**

- Total assets increased $14.3 million from year end to $31.3 million

- Net book value increased $14.4 million to $31.2 million

- Resumption of the European call option treasury management strategy

- Pursuant to the terms of a normal course issuer bid, during the six months ended March 31, 2024, the Company purchased and cancelled 3,041,343 shares.

**Treasury Management and Diversified Yield Generation**

*Treasury Management -* The Company resumed its treasury management strategy during the quarter, selling European call options that generated 1.5005 in premiums, paid in Bitcoin.

*Cryptocurrencies* - At March 31, 2024, the Company had 166.2 Bitcoin (September 30, 2023 - 215.37 Bitcoin) with a cost base of $6.3 million. The decrease in Bitcoin is due to the sale of Bitcoin in treasury management operations offset by Bitcoin income from mining operations and premium income in treasury management operations.

**Private Equity and Venture Capital**

*Highlights*

- Total investments effectively flat since September 30, 2023, with a $386,000 decline to $6.9 million at March 31, 2024.

- Sale of 2.5 million Animoca Brands Corporation Limited ("Animoca") shares at a price of AUD $0.90 per share ($0.79 CAD) for net proceeds of AUD $2,250,000 ($1,964,250 CAD)

------

Cypherpunk Holdings Inc. <br>  

- $359,691 realized loss on investments recognized during the six months ended March 31, 2024 (2022 - $1,178,765), representing a loss of approximately $630,000 on the sale of 2.5 million Animoca shares offset by a gain of$271,000 from the Company's pro rata share of the proceeds realized by Isla Capital Ltd. ("Isla") from the sale of its right to FTX bankruptcy claims (the "Claims").

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail as at March 31, 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **March 31,**<br>**2024** | <br>Quantity | September 30,<br>2023 |
| Animoca Brands Corporation Limited (a) | **6590909** | $**5585084** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358952** | 19860 | 366932 |
| Lucy Labs Flagship Offshore Fund SPC (c) | **500** | **-** | 500 |  |
| NGRAVE.IO (d) | **138966** | **82799** | 138966 | 80976 |
| Streetside Development, LLC (e) | **1429** | **119979** | 1429 | 122646 |
| zkSNACKS Limited - Shares (f) | **4500** | **755866** | 4500 | 772668 |
|  |  | $**6902680** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). During the six months ended March 31, 2024, the Company sold 2,500,000 Animoca shares at a price of AUD $0.90 per share ($0.79 CAD) for net proceeds of AUD $2,250,000 ($1,964,250 CAD) At March 31, 2024 the Company determined the fair value of its remaining 6,590,909 Animoca shares to be $5,585,087 (September 30, 2023 - $5,120,897) recognizing an unrealized gain of $3,058,789 in the Interim Statements (2023 - $316,904).

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at March 31, 2024 recognizing an unrealized loss of $7,979 in the Interim Statements (2022 - $nil).

(c) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023. See also Subsequent Events.

(d) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at March 31, 2024 recognizing an unrealized gain of $1,823 in the Interim Statements (2022 - $nil).

(e) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $119,979 as at March 31, 2024 recognizing an unrealized loss of $2,667 in the Interim Statements (2022 - $nil).

(f) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $755,866 as at March 31, 2024 recognizing an unrealized loss of $16,802 in the Interim Statements (2022 - $nil).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the six months ended March 31, 2024.

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Cypherpunk Holdings Inc. <br>  

**Other Assets**

Other assets declined $15,818 to $44,327 at March 31, 2024 (September 30, 2023 - $60,145), due to the amortization of the Company's cryptocurrency mining assets.

**Subsequent Events**

On April 9, 2024, the Company cancelled 299,500 common shares purchased pursuant to the NCIB.

On April 26, 2024, the Company cancelled 2,764,500 common shares purchased pursuant to the NCIB.

On April 30, 2024, based on recent events pertaining to Streetside, the Company wrote its investment in Streetside down to $nil.

On May 15, 2024, zkSNACKS, based on recent events pertaining to zkSNACKS, the Company wrote its investment in zkSNACKS down to $nil.

On May 15, 2024, the Company was advised that it would recover approximately US$500,000 on its investment in Lucy Labs that had previously been written off pursuant to the FTX Trading Ltd.

**OVERALL PERFORMANCE**

**Overview**

- Cash position of $7.6 million (September 30, 2023 - $1.9 million)

- Cryptocurrency holdings of $16.1 million (September 30, 2023 - $7.9 million) reflecting:

o An unrealized gain of $10.0 million (2023 - $nil), recognized in other comprehensive income

o Investment income paid in cryptocurrencies of $101,095

o Dividend income of $91,219

o Cash sales of cryptocurrencies of $4.2 million, resulting in a gain of $2.2 million, recognized in other comprehensive income

- Total assets of $31.3 million (September 30, 2023 - $17.1 million)

- Net book value of $31.2 million (September 30, 2023 - $16.8 million)

**SELECTED ANNUAL INFORMATION**

Selected audited annual information for the three most recently completed years, all reported under IFRS, are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2023** | **2022** | **2021** |
| Total assets | $17054245 | $23892055 | $31230861 |
| Shareholders' equity | 16827769 | 23583763 | 27841541 |
| Income | (4498715) | 3131499 | 406819 |
| Net income | (6282328) | 358456 | (1174497) |
| EPS | $(0.04) | $0.00 | $(0.01) |
| Comprehensive income | (6479174) | (5612877) | 7419378 |

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Cypherpunk Holdings Inc. <br>  

**Results of Operations**

*Comparison of the years ended September 30, 2023 and 2022*

The total comprehensive loss for the year ended September 30, 2023 ("Fiscal 2023") increased $866,297 to a loss of $6,479,174 compared to total comprehensive loss of $5,612,877 for the year ended September 30, 2022 ("Fiscal 2022"). The main reasons for the variance are as follows:

- Unrealized loss on investments of $4,060,250 during Fiscal 2023 (2022 - $1,325,836), mainly due to an unrealized loss on Animoca of $4,314,020 in Fiscal 2023. In Fiscal 2022 the unrealized loss was mainly due to losses in the Company's GOAT, Animoca and Ngrave investments totaling $1,325,836.

- During Fiscal 2023 the Company realized a loss on investments of $1,178,765 (2022 - a realized gain of $3,758,852) due to realized losses on ISLA and Lucy Labs during Fiscal 2023. In Fiscal 2022 the realized gain on investments was mainly due to the sale of its Animoca investment of $4,212,365 offset by realized losses on its 168, Panxora and 66 investments.

- The Company realized on gain on disposition of IPv4 assets during Fiscal 2023 of $536,633 (2022 - $nil).

- Operating expenses in Fiscal 2023 were $1,810,557 (2022 - $2,338,302), the decrease in operating losses was mainly due to:

o Stock-based compensation in Fiscal 2023 of $430,945 (2022 - $1,345,099).

o Consulting fees of $424,735 (2022 - $625,990).

o Foreign exchange loss in Fiscal 2023 of $346,669 (2022 - gain of $715,354).

o Amortization expense of $70,885 (2022 - $255,548).

o Asset impairment in Fiscal 2023 of $nil (2022 - $215,802).

- For Fiscal 2023 the loss from items that will not be reclassified to profit and loss of $196,846 (2022 - $5,971,333).

**SELECTED QUARTERLY INFORMATION**

The below selected quarterly information summarizes the financial information for the last eight quarters.

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| |
|:---|
| Income (loss) before taxes |
| Tax Recovery) |
| Income (loss) for period |
| Net income (loss) per share (basic and diluted) |
| Total comprehensive income (loss) |
| Total assets |
| Net book value |

---

**Results of Operations**

*Comparison of the three months ended March 31, 2024 and 2023*

The total comprehensive income for the three months ended March 31, 2024 ("Q2-24") increased $7.8 million to $7.7 million

(2023 - total comprehensive loss of $0.65 million). The main reasons for the increase are as follows:

- In Q2-24 there was other comprehensive income of $8.0 million (2023 - $0.65 million), mainly due to unrealized gains in the Company's Bitcoin holdings of $5.8 million and realized gains on the sale of 51.91 Bitcoin of approximately $2.2 million.

- In Q2-24 there was a realized loss on investments of $0.63 million (2023 - $nil) due to the sales of 2.5 million Animoca shares, offset by an unrealized gain on Animoca based on the increase of its share price on December 31, 2023 and March 31, 2024.

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Cypherpunk Holdings Inc. <br>  

- Divided income increased $74,833 to $88,606, mainly due to a 0.9 Bitcoin paid by zkSNACKS

- In Q2-24 operating expenses decreased $348,378 to $174,294, mainly due to the following:

o A $131,489 decrease in stock based compensation to $24,693

o A $184,956 decrease in foreign exchange loss to a foreign exchange gain of $34,365

o A $29,748 decrease in professional fees

**FINANCIAL AND CAPITAL MANAGEMENT**

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| | |
|:---|:---|
| **Outstanding Share Data** |  |
| **At March 31, 2024** |  |
| Common shares outstanding: | 149025840 |
| Options to purchase common shares: | 11827000 |
| Warrants: | nil |
| **At May 29, 2024** |  |
| Common shares outstanding: | 145961840 |
| Options to purchase common shares: | 11827000 |
| Warrants: | nil |

---

**Cash Flow**

For the six months ended March 31, 2024, cash and cash equivalents increased $5,668,995 (2023 - decrease of $10,219,555) due to $377,190 of net cash used in operating activities (2023 - $718,911), $385,886 of net cash used in financing activities (2022 - $256,355), and $6,432,071 of net cash provided by investing activities (2023 - $9,244,289 used in investing activities).

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

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| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5585084 | $1317596 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 11217175 |  |
| Cryptocurrencies pledged as collateral | $- | 4846860 |  |
|  | $**-** | $**21649119** | $**1317596** |

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Cypherpunk Holdings Inc. <br>  

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| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the six months ended March 31, 2024 and the year ended September 30, 2023.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | March 31, | September 30, | March 31, | March 31, |
|  | 2024 | 2023 | 2024 | 2024 |
| Investments | $1317596 | $1343222 | (a) and (b) | N/A |

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Cypherpunk Holdings Inc. <br>  

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at March 31, 2024 and noted that a 20% decrease would result in a $263,519 decrease in fair value.

**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there is sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the six months ended March 31, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

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Cypherpunk Holdings Inc. <br>  

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for its OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for its OTC derivative trading desk. The Company is not aware of anything with regard to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at March 31, 2024, the Company holds $7,596,275 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

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Cypherpunk Holdings Inc. <br>  

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in the inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

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Cypherpunk Holdings Inc. <br>  

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at March 31, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $690,268 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of March 31, 2024 is $5,684,038 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $568,404 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2024, the Company had cash and cash equivalents balance of $7,596,275 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $173,401 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Accounting Policies**

This MD&A should be read in conjunction with the Company's Interim Statements. For additional information on the Company's significant accounting policies, methods and critical accounting estimates and judgments used in preparation of the Company's 2022 consolidated financial statements and notes, please refer to Note 2 of the audited consolidated financial statements as at September 30, 2022. The Interim Statements are presented on a going concern basis. The preparation of financial statements in compliance with IFRS requires the Company's management to make certain estimates and assumptions that they consider reasonable and realistic. Despite regular reviews of these estimates and assumptions, based in particular on past achievements or anticipations, facts and circumstances may lead to changes in these estimates and assumptions which could impact the reported amount of the Company's assets, liabilities, income, and expenses. Actual results may differ from those estimates.

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Cypherpunk Holdings Inc. <br>  

**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements.

**Transactions with Related Parties**

See note 13 of the Interim Statements.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**Other Information**

This discussion and analysis of the financial position and results of operation as at May 29, 2024, should be read in conjunction with the consolidated financial statements for the year ended September 30, 2023 and 2022. Additional information can be accessed through the Company's public filings at <u>www.sedar.com</u>.

**Management's Responsibility for Financial Information**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**Management's Report on Internal Control over Financial Reporting**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

*"Antanas Guoga"*

Chief Executive Officer

May 29, 2024

------

Cypherpunk Holdings Inc. <br>  

**Forward-Looking Statements**

*Certain statements included or incorporated by reference in this MD&A, including information as to the future financial or operating performance of the Company, its subsidiaries, and its projects, constitute forward-looking statements. The words "believe", "expect" , "anticipate" , "contemplate" , "target" , "plan", "intends", "continue", "budget", "estimate", "may", "schedule" and similar expressions identify forward-looking statements. This MD&A includes, but is not limited to, forward-looking statements regarding: the Company's ability to meet its working capital needs for the twelve-months ending March 31, 2024 and statements regarding the Company's critical accounting estimates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social uncertainties, and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward- looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to additional funding requirements, political and foreign risk, uninsurable risks, competition, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write- downs and dependence on key employees. See "Risk and Uncertainties" section of this MD&A. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this MD&A and the Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events, or results or otherwise.*

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## Exhibit 99.11

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**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Douglas Harris, Chief Financial Officer** of **Cypherpunk Holdings Inc.,** certify the following:

**1. Review:** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **March 31, 2024.**

**2. *No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

**3. *Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.<br>

Date: May 29, 2024.

Signed "Douglas Harris"<br>_________________________________________

Douglas Harris

Chief Financial Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.12

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**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

**I, Antanas Guoga, Chief Executive Officer** of **Cypherpunk Holdings Inc.**, certify the following:

**1. *Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **March 31, 2024.**

**2. *No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

**3.** ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: May 29, 2024.

*Signed "Antanas Guoga"*

_______________________________________<br>Antanas Guoga

Chief Executive Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.13

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**BAYMOUNT PROVIDES AN UPDATE ON PRIVATE PLACEMENT OF UNITS**

Toronto, Ontario - May 31, 2024 - Baymount Incorporated (NEX: BYM.H) (the "**Corporation**" or "**Baymount**") announces that further to its press release of April 12, 2024, the Company has been granted a 30-day extension by the TSX Venture Exchange (the "**TSXV**") to June 29, 2024 of its previously announced non-brokered private placement financing for aggregate gross proceeds of up to $100,000 through the issuance of units (each, a "**Unit**") at a price of $0.01 per Unit (the "**Offering**").

Each Unit shall be comprised of one common share (each, a "**Common Share**") in the capital of the Company and one Common Share purchase warrant (each, a "**Warrant**"). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.05 for a period of one year from the closing date of the Offering. 100% of the gross proceeds from the sale of the Offering will be used for working capital and general corporate purposes. The Company will not make any proposed payments to non-arm's length parties of the Company and will not make any payment to persons conducting investor relations activities with the proceeds from the Offering.

Closing of the Offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSXV. All securities issued in connection with Offering will be subject to a statutory hold period of four months and one day from the closing date in accordance with applicable securities legislation.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable United States securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

***Forward-looking Statements***

This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the Corporation's business plan and matters relating thereto, and risks associated with the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Corporation's public filings on SEDAR+. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**For further information please contact:**

Mr. Graham Simmonds

Chief Executive Officer<br>416-843-2881<br><u>jgrahamsimmonds@gmail.com</u>

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## Exhibit 99.14

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![](exhibit99-14x001.jpg)

**CYPHERPUNK HOLDINGS ANNOUNCES SUCCESSFUL COMPLETION OF NORMAL COURSE ISSUER BID**

**Toronto, Ontario - June 12, 2024 - Cypherpunk Holdings Inc. (CSE: HODL) (OTC Pink: CYFRF)** (the "Company") is pleased to announce the successful completion of its Normal Course Issuer Bid ("NCIB"), initially announced on February 20, 2024.

Under the NCIB, the Company has purchased and cancelled a total of 7,603,343 common shares at an average price of CAD $0.1228 per share. These shares represent approximately 5% of the Company's issued and outstanding common shares as of the commencement of the NCIB. The Company believes that the NCIB was a prudent use of its financial resources and reflects its confidence in the long-term value of the business.

In addition, the Company has sold an additional 1,507,692 shares of Animoca Brands for net consideration of USD $980,000. Furthermore, Cypherpunk Holdings Inc. has acquired 6,131 Solana (SOL) at an average price of USD $163.11.

Following a comprehensive review, as detailed in the press release dated March 11, 2024, Cypherpunk Holdings has determined to continue its operations within the cryptocurrency sector. The Company recognizes the substantial financial opportunities within the cryptocurrency and blockchain industry and will strategically pursue these prospects. Further updates on the Company's future direction will be provided in due course.

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

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![](exhibit99-14x002.jpg)

*There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

---

| |
|:---|
| **Officer/Director Contact:** |
| Doug Harris |
| Chief Financial Officer |
| doug@cypherpunkholdings.com |

---

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## Exhibit 99.15

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**Cypherpunk Holdings Announces Option Grant and Cancellation**

**TORONTO, ONTARIO, July 5, 2024 - Cypherpunk Holdings Inc.** (CSE: HODL) (OTC Pink: CYFRF) (the "**Company**"), a Canadian-based holding vehicle dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem is pleased to announce that it has granted 3,000,000 stock options to purchase 3,000,000 common shares (each a, "**Common Share**") of the Company at a price of $0.115 per Common Share, expiring on July 3, 2029 to certain officers, directors, and employees of the Company. The Common Shares issuable upon exercise of the options are subject to a four-month hold period from the original date of grant.

The Company also announces it has cancelled a total of 6,900,000 stock options to certain officers, directors and employees of the Company as they were no longer serving their purpose in aligning the interest of the holders with those of shareholders.

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

*This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

*There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

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![](exhibit99-15x002.jpg)

---

| |
|:---|
| **Officer/Director Contact:** |
| Doug Harris |
| Chief Financial Officer |
| doug@cypherpunkholdings.com |
| Tel: 647-946-1300 |

---

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## Exhibit 99.16

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**Cypherpunk Holdings Appoints Former Valkyrie CEO Leah Wald as Chief Executive Officer**

**TORONTO, July 9, 2024 -** Cypherpunk Holdings Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Cypherpunk" or the "Company"), a Canadian-based holding vehicle dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem today announced the appointment of Leah Wald, crypto industry veteran, as President and Chief Executive Officer. Ms. Wald replaces Antanas Guoga (Tony G) in this role and will also continue to serve as a director of Cypherpunk. Mr. Guoga will remain as the Company's Chairman.

Leah Wald, President and CEO of Cypherpunk, commented: "I am excited to join the Cypherpunk executive team and honored to lead it into its next growth phase. With the recent regulatory approvals for Bitcoin financial products, the industry has made great progress in bringing the benefits of blockchain assets to a wider investor base. It's my goal to do a comprehensive review of both Cypherpunk's business strategy and brand to enact a comprehensive plan aimed to transform it into a leading vehicle for investors looking for exposure to digital assets via public markets. I look forward to driving innovation with the Cypherpunk team and expanding its investment portfolio using fresh, creative ideas to drive shareholder value through investing in digital assets."

Ms. Wald is the co-founder and former CEO of Valkyrie Investments, a specialized digital asset management firm, where she spearheaded the launch of the first-ever NASDAQ-listed Bitcoin futures ETF. While leading Valkyrie, Ms. Wald also launched several other Bitcoin ETFs and private funds, paving the way for broader acceptance and integration of digital assets in traditional financial markets. Under her leadership, Valkyrie quickly rose to prominence, earning a reputation for its cutting-edge financial products and strategic market positioning, and amassed $1.3 billion in assets under management (AUM) within just over a year of launching its first fund.

Antanas Guoga (Tony G), Chairman of Cypherpunk, commented: "We are pleased to welcome Leah Wald as the new President and CEO of Cypherpunk. Her extensive expertise and proven leadership in the digital asset industry will be instrumental in driving our next phase of innovation and growth. With Leah leading the way, we are confident that Cypherpunk will continue to push the boundaries of what's possible in blockchain investing and expand our impact in the market."

The Company also announces that its annual and special meeting of shareholders will be held on Tuesday, July 30, 2024, at 10:00 a.m. (Toronto Time). Notice of the meeting, the accompanying management information circular and related meeting materials are now available under the Company's profile on SEDAR+ at <u>www.sedarplus.com</u>

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

------

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

*This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

*There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

<br> Officer/Director Contact:

Doug Harris<br>Chief Financial Officer<br>doug@cypherpunkholdings.com<br>Tel: 647-946-1300

**Media contact:** cypherpunk@mgroupsc.com

**SOURCE:** Cypherpunk Holdings Inc.

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## Exhibit 99.17

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**CYPHERPUNK HOLDINGS INC.**

401-217 Queen Street, Toronto, Ontario M5V 0R2

**NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS**

**NOTICE IS HEREBY GIVEN** that the annual and special meeting (the "**Meeting**") of shareholders ("**Shareholders**") of Cypherpunk Holdings Inc. (the "**Company**") will be held at the office of Irwin Lowy LLP located at 217 Queen Street West, Suite 401 Toronto, ON M5V 0R2; on Tuesday, July 30, 2024 at 10:00 a.m. (Toronto Time) in order to:

1. to receive and consider the audited consolidated financial statements of the Company for the year ended September 30, 2023, and the report of the auditors thereon;

2. to elect directors of the Company to hold office until the next annual meeting of Shareholders;

3. to appoint the auditors of the Company and to authorize the directors to fix their remuneration;

4. to consider and, if deemed advisable, pass, with or without variation, a special resolution to amend the articles of amendment of the Company to change the name of the Company to such name as the directors of the Company in their sole discretion, may determine and as may be acceptable to the Director appointed under the *Business Corporations Act* (Ontario);

5. to consider and, if deemed appropriate, to pass, with or without variation, an ordinary resolution approving and confirming the stock option plan of the Company; and

6. to transact such other business as may properly come before the Meeting or any adjournments or postponements thereof.

This notice of meeting (the "**Notice of Meeting**") is accompanied by the management information circular dated July 2, 2024 (the "**Circular**") of the Company and a form of proxy, which should be read in conjunction with this Notice of Meeting.

Shareholders may attend the Meeting in person or may be represented by proxy. Shareholders unable to attend the Meeting or any adjournment(s) thereof in person are requested to date, sign and return the enclosed form of proxy to the attention of TSX Trust Company ("**TSX Trust**"), Suite 301, 100 Adelaide St. West, Toronto, Ontario, M5H 4H1. To be effective, a proxy must be received not later than 10:00 a.m. (Eastern time) on Friday, July 26, 2024, or in the event that the Meeting is adjourned or postponed, not less than 48 hours (excluding Saturdays, Sundays and holidays) immediately preceding any adjournment(s) or postponement(s) thereof. Instead of mailing your proxy, Shareholders may choose to vote using the Internet in accordance with the instructions set out in the accompanying form of proxy.

Shareholders who are unable to attend the Meeting in person, are requested to date, complete, sign and return the enclosed form of proxy so that as large a representation as possible may be had at the Meeting.

The board of directors of the Company has by resolution fixed the close of business on Friday, June 21, 2024 as the record date, being the date for the determination of the registered holders of common shares of the Company entitled to receive notice of, and to vote at, the Meeting and any adjournment thereof.

The accompanying management information circular provides additional detailed information relating to the matters to be dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of annual and special meeting. Additional information about the Company and its financial statements are also available on the Company's

profile at <u>www.sedarplus.ca</u>.

**DATED** this 2<sup>nd</sup> day of July, 2024.

**BY ORDER OF THE BOARD**

*"Antanas Guoga" (signed)*

*President and Chief Executive Officer*

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**EXHIBIT "A"**

**SPECIAL RESOLUTION OF THE SHAREHOLDERS**

**OF**

**CYPHERPUNK HOLDINGS INC.**

**<u>AMENDMENT TO ARTICLES OF AMENDMENT - NAME CHANGE</u>**

**"BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:**

1. the articles of amendment of the Company be amended to change the name of the Company to such name as the directors of the Company, in their sole discretion, may determine and as may be acceptable to the Director appointed under the *Business Corporations Act* (Ontario) (the "**Name Change**");

2. notwithstanding that this resolution has been duly passed by the shareholders of the Company, the directors of the Company be, and they are hereby authorized and empowered to revoke this resolution at any time prior to the issue of a certificate of amendment giving effect to the Name Change and to determine not to proceed with the amendment of the articles of amendment of the Company without further approval of the shareholders of the Company; and

3. any director or officer of the Company be and he or she is hereby authorized and directed, for and on behalf of the Company, to execute and deliver all such documents and to do all such other acts or things as he or she may determine to be necessary or advisable to give effect to this resolution, including, without limitation, the execution and delivery of the articles of amendment in the prescribed form to the Director appointed under the *Business Corporations Act* (Ontario), the execution of any such document or the doing of any such other act or thing being conclusive evidence of such determination."

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![](exhibit99-17x001.jpg)

**217 Queen Street West, Suite 401 Toronto, ON M5V 0R2**

**MANAGEMENT INFORMATION CIRCULAR**

This management information circular ("**Circular**") is furnished in connection with the solicitation of proxies by or on behalf of the management of Cypherpunk Holdings Inc. (the "**Company**") for use at the annual and special meeting of shareholders ("**Shareholders**") of the Company (the "**Meeting**") to be held at the office of Irwin Lowy LLP located at 217 Queen Street West, Suite 401 Toronto, ON M5V 0R2 on Tuesday, July 30, 2024 at 10:00 a.m. (Toronto Time), and at any adjournment(s) or postponement(s) thereof, for the purposes set forth in the Notice of Meeting.

**This solicitation of proxies is made by or on behalf of the management of the Company. The solicitation of proxies will be primarily by mail, but proxies may also be solicited personally, by telephone, by email, by internet or other means of communication by regular employees, officers and agents of the Company for which no additional compensation will be paid. The cost of preparing, assembling and mailing this Circular, the Notice of Meeting, the proxy form, the voting instruction form and any other material relating to the Meeting and the cost of soliciting proxies has been or will be borne by the Company.**

**The Company may supplement, update or amend this Circular after the date hereof and prior to the Meeting by filing a press release or a material change report with a securities commission or similar authority in Canada that specifically states that it is intended to supplement, update or amend this Circular.**

This Circular provides the information that you need to vote at the Meeting. If you are a registered holder of common shares (the "**Common Shares**") of the Company the form of proxy (the "**Form of Proxy**") accompanying this Circular can be used to vote at the Meeting.

If your Common Shares are held by a nominee, you may receive either a form of proxy or voting instruction form from such nominee and should carefully follow the instructions provided by the nominee in order to have your Common Shares voted at the Meeting.

Unless otherwise indicated, the information in this Circular is given as at July 2, 2024, and all references to financial results are based on our financial statements prepared in accordance with International Financial Reporting Standards ("**IFRS**"). Unless otherwise indicated, all references to "$" are to Canadian dollars.

These security holder materials are being sent to both registered and non-registered owners of the securities. If you are a non-registered owner, and the Company or its agent has sent these materials directly to you, your name and address and information about your holdings of securities have been obtained in accordance with applicable securities regulatory requirements from the intermediary holding on your behalf. By choosing to send these materials to you directly, the Company (and not the intermediary holding on your behalf) has assumed responsibility for (i) delivering these materials to you and (ii) executing your proper voting instructions. Please return your voting instructions as specified in the request for voting instructions.

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**FINANCIAL INFORMATION**

All financial statements and financial data derived therefrom included or incorporated by reference in this Circular pertaining to the Company have been prepared in accordance with IFRS.

**VOTING INFORMATION**

**Registered Shareholders**

A Shareholder is a registered shareholder (a "**Registered Shareholder**") if shown on the list of holders of Common Shares kept by TSX Trust Company, as registrar and transfer agent of the Company, at the close of business on the record date, Friday, June 21, 2024 (the "**Record Date**"). Registered Shareholders will receive from the Transfer Agent this Circular and the Form of Proxy representing the Common Shares held by the Registered Shareholder.

All reference to Shareholders in this Circular and the accompanying Instrument of Proxy and Notice of Meeting are to Registered Shareholders of record on the Record Date, unless specifically stated otherwise.

**Appointment of Proxy**

The Form of Proxy is enclosed and, whether or not you expect to attend the Meeting, please exercise your right to vote. Shareholders who have voted by proxy may still attend the Meeting. Please complete and return the Form of Proxy in the envelope provided. The Form of Proxy must be dated and executed by the Registered Shareholder or the attorney of such Shareholder, duly authorized in writing. Proxies to be used at the Meeting must be deposited with TSX Trust Company (the "**Transfer Agent**"), the transfer agent and registrar of the Company, in the envelope provided or otherwise to TSX Trust Company ("**TSX Trust**"), Suite 301, 100 Adelaide St. West, Toronto, Ontario, M5H 4H1, not later than 10:00 a.m. (Eastern time) on Friday, July 26, 2024 or 48 hours (excluding Saturdays, Sundays and holidays) prior to any adjournment(s) or postponement(s) thereof. Alternatively, Registered Shareholders may choose to vote using the Internet in accordance with the instructions set out in the Form of Proxy. Voting by mail or by Internet are the only methods by which a Registered Shareholder may appoint a person as proxyholder other than the management nominees named on the Form of Proxy.

The persons named in the enclosed Form of Proxy are directors or officers of the Company. A Shareholder may appoint as proxyholder a person or company (who need not be a Shareholder), other than those persons named in the Form of Proxy, to attend and act on such Shareholder's behalf at the Meeting or at any adjournment(s) or postponement(s) thereof. Such right may be exercised by either inserting such other desired proxyholder's name in the blank space provided on the Form of Proxy or by completing another proper form of proxy.

**Revocation of Proxy**

A Registered Shareholder who has given a proxy pursuant to this solicitation may revoke it as to any matter on which a vote has not already been cast pursuant to its authority by an instrument in writing executed by the Shareholder or by the attorney of such Shareholder authorized in writing or, if the Registered Shareholder is a Company, by an officer or attorney thereof duly authorized, and deposited either at the registered office of the Company, on or before the last business day preceding the day of the Meeting or any adjournment(s) or postponement(s) thereof at which the Form of Proxy is to be used or with the Chairman of the Meeting on the day of the Meeting or any adjournment(s) or postponement(s) thereof, or in any other manner permitted by law.

**Non-Registered Shareholders**

Only Registered Shareholders or their duly appointed proxy holders are permitted to vote at the Meeting. Most Shareholders are "non-registered" Shareholders because the Common Shares they own are not registered in their names but are instead registered in the name of the brokerage firm, bank or trust company through which they purchased the Common Shares or a clearing agency or other intermediary. More particularly, a person is not a registered Shareholder in respect of Common Shares which are held on behalf of that person (the "**Non-Registered Holder**") but which are registered either: (a) in the name of an intermediary (an "**Intermediary**") that the Non-Registered Holder deals with in respect of the Common Shares (Intermediaries include, among others, banks, trust companies, securities dealers or brokers and trustees or administrators of self-administered RRSPs, RRIFs, RESPs and similar plans); or (b) in the name of a clearing agency (such as the Canadian Depository for Securities Limited ("**CDS**")) of which the Intermediary is a participant. In accordance with the requirements of National Instrument 54- 102, the Company has distributed copies of the Notice of Meeting, this Circular and the Form of Proxy (collectively, the "**Meeting Materials**") to the clearing agencies and Intermediaries for onward distribution to Non-Registered Holders.

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Intermediaries are required to forward the Meeting Materials to Non-Registered Holders unless a Non-Registered Holder has waived the right to receive them. Very often, Intermediaries will use service companies to forward the Meeting Materials to Non-Registered Holders. Generally, Non-Registered Holders who have not waived the right to receive Meeting Materials will either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be given a Form of Proxy which has already been signed by the Intermediary (typically by a facsimile, stamped signature), which is restricted as to the number of Common Shares beneficially owned by the Non- Registered-Holder but which is otherwise not completed. Because the Intermediary has already signed the Form of Proxy, this Form of Proxy is not required to be signed by the Non-Registered Holder when submitting the Form of Proxy. In this case, the Non-Registered Holder who wishes to submit an instrument of proxy should otherwise properly complete the Form of Proxy and deposit it with the Company as provided above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) more typically, be given a Voting Instructions Form (a "**VIF**") which is not signed by the Intermediary, and which, when properly completed and signed by the Non-Registered Holder and returned to the Intermediary or its service company, will constitute voting instructions which the Intermediary must follow. Typically, the VIF will consist of a one-page, pre-printed form. Sometimes, instead of the one-page, pre-printed form, the VIF will consist of a regular printed Form of Proxy accompanied by a page of instructions which contains a removable label containing a bar-code and other information. In order for the Form of Proxy to validly constitute a proxy authorization form, the Non-Registered Holder must remove the label from the instructions and affix it to the Form of Proxy, properly complete and sign the Form of Proxy and return it to the Intermediary or its service company in accordance with the instructions of the Intermediary or its service company. Every intermediary/broker has its own mailing procedures and provides its own return instructions to clients, which should be carefully followed by Beneficial Shareholders in order to ensure that their Common Shares are voted at the Meeting.

In either case, the purpose of this procedure is to permit Non-Registered Holders to direct the voting of the Common Shares which they beneficially own. Should a Non-Registered Holder who receives one of the above forms wish to vote at the Meeting in person, the Non-Registered Holder should strike out the names of the management's representatives named in the Form of Proxy and insert the Non-Registered Holder's name in the blank space provided.

The majority of Intermediaries now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("**Broadridge**"). Broadridge typically mails the VIFs or Forms of Proxy to the Non- Registered Shareholders and asks the Non-Registered Shareholders to return the VIFs or Forms of Proxy to Broadridge. Broadridge then tabulates the results of all instructions received and provides appropriate instructions respecting the voting of Common Shares to be represented at the Meeting. A Non-Registered Shareholder receiving a VIF from Broadridge cannot use that proxy to vote Common Shares directly at the Meeting. The VIF must be returned to Broadridge well in advance of the Meeting in order to have the Common Shares voted. If you have any questions respecting the voting of Common Shares held through a broker or other Intermediary, please contact the broker or other Intermediary for assistance.

There are two kinds of Non-Registered Shareholders - those who object to their names being made known to the issuers of securities which they own being called Objecting Beneficial Owners ("**OBOs**") and those who do not object to the issuers of the securities knowing who they are being called Non-Objecting Beneficial Owners ("**NOBOs**").

Subject to the provisions of NI 54-101, issuers may request and obtain a list of their NOBOs from Intermediaries via their transfer agent in order to distribute the Meeting Materials directly to such NOBOs. The Company is taking advantage of those provisions of NI 54-101, which permit the Company to send the Meeting Materials directly to NOBOs. If you are a NOBO, and the Company or its Transfer Agent has sent the Meeting Materials directly to you, your name and address and information about your holdings of Common Shares have been obtained in accordance with applicable securities regulatory requirements from the Intermediary holding the Common Shares on your behalf. By choosing to send these materials to you directly, the Company (and not the Intermediary holding the Common Shares on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your VIF as specified therein.

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Every Intermediary has its own mailing procedures and provides its own return instructions, which should be carefully followed by Non-Registered Shareholders in order to ensure that their Common Shares are voted at the Meeting. Non- Registered Shareholders should carefully follow the instructions on the Form of Proxy or VIF that they receive from their Intermediary in order to vote the Common Shares that are held through that Intermediary.

**Revocation of Voting Instructions**

A Non-Registered Shareholder giving voting instructions may revoke such voting instructions by contacting his or her Intermediary in respect of such voting instructions and complying with any applicable requirements imposed by such Intermediary. An Intermediary that has submitted a Form of Proxy based on voting instructions received from a Non-Registered Shareholder may not be able to revoke a Form of Proxy if it receives insufficient notice of revocation.

**Voting of Proxies**

On any ballot that may be called for, the Common Shares represented by a properly executed proxy given in favour of the persons designated by management of the Company in the enclosed Form of Proxy will be voted or withheld from voting in accordance with the instructions given on the Form of Proxy and, if the Shareholder specifies a choice with respect to any matter to be acted upon, the Common Shares will be voted accordingly. In the absence of such instructions, such Common Shares will be voted FOR the approval of all resolutions in this Circular.

The enclosed Form of Proxy confers discretionary authority upon the persons named therein with respect to amendments to matters identified in the accompanying Notice of Meeting and with respect to other matters which may properly come before the Meeting or any adjournment(s) or postponement(s) thereof. As of the date of this Circular, management of the Company is not aware of any such amendments or other matter to come before the Meeting. However, if any amendments to matters identified in the accompanying Notice of Meeting or any other matters which are not now known to management should properly come before the Meeting or any adjournment(s) or postponement(s) thereof, the Common Shares represented by properly executed proxies given in favour of the persons designated by management of the Company in the enclosed Form of Proxy will be voted on such matters in accordance with the best judgment of the named proxies.

**Voting of Common Shares**

***Record Date***

The Record Date for the purpose of determining the Shareholders entitled to receive notice of and vote at the Meeting has been fixed as Friday, June 21, 2024. All Shareholders of record at the close of business on the Record Date are entitled to vote the Common Shares registered in such Shareholder's name at that date on each matter to be acted upon at the Meeting.

***Common Shares***

The authorized share capital of the Company consists of an unlimited number of Common Shares. As at the date hereof, there were 144,673,465 Common Shares issued and outstanding. Each Common Share carries the right to one vote per Common Share at the Meeting.

No other voting securities are issued and outstanding as of the Record Date.

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***Quorum***

The Company's by-laws, as amended, provide that the quorum for the transaction of business at any meeting of the Shareholders shall consist of at least two Shareholders present in person or represented by proxy.

**ADDITIONAL MATTERS PRESENTED AT THE ANNUAL AND SPECIAL MEETING**

The Form of Proxy form or VIF confers discretionary authority upon the persons named as proxies therein with respect to any amendments or variations to the matters identified in the Notice of Meeting and with respect to other matters which may properly come before the Meeting.

If you sign and return the proxy form for Common Shares and any matter is presented at the Meeting in addition to the matters described in the Notice of Meeting, the Company officers named as proxies will vote in their best judgment. When this Circular went to press, management of the Company was not aware of any matters to be considered at the Meeting other than the matters described in the Notice of Meeting or any amendments or variations to the matters described in such notice.

**PRINCIPAL HOLDERS OF VOTING SHARES**

To the knowledge of the directors and senior officers of the Company, no person beneficially owns, directly or indirectly, or exercises control or direction over, directly or indirectly, voting securities carrying ten percent (10%) or more of the voting rights attached to any class of voting securities of the Company, other than as set forth below:

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| | | |
|:---|:---|:---|
| **Name<sup>(1)</sup>** | **Number of Common**<br>**Shares** | **Percentage of Issued and**<br>**Outstanding Common**<br>**Shares<sup>(2)</sup>** |
| Anatanas Guoga | 47598167 | 32.90% |

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*Notes:*

*(1) The above information as to voting securities beneficially owned, controlled or directed, not being within the knowledge of the Company, has been obtained from publicly disclosed information and confirmed by the individual.*

**PARTICULARS OF MATTERS TO BE ACTED ON**

To the knowledge of the board of directors of the Corporation (the "**Board**"), the matters to be brought before the Meeting are those matters set forth in the accompanying Notice of Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. AUDITED FINANCIAL STATEMENTS**

The consolidated financial statements for the financial years ended September 30, 2023 and the report of the auditors thereon, which accompany this Circular will be submitted to the Meeting of shareholders. Receipt at such Meeting of the auditors' report and the Company's financial statements for this financial period will not constitute approval or disapproval of any matters referred to therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. APPOINTMENT OF AUDITORS**

The Board appointed Kingston Ross Pasnak LLP, Chartered Professional Accountants, as auditors of the Company effective June 3, 2022. Shareholders are being asked to confirm the actions of the Board and appoint Kingston Ross Pasnak LLP, Chartered Professional Accountants as auditors of the Company to hold office until the next annual meeting of shareholders.

**UNLESS THE SHAREHOLDER DIRECTS THAT HIS, HER OR ITS COMMON SHARES ARE TO BE WITHHELD FROM VOTING IN CONNECTION WITH THE CONFIRMATION AND APPOINTMENT OF AUDITORS, THE PERSONS NAMED IN THE ENCLOSED FORM OF PROXY INTEND TO VOTE FOR THE APPOINTMENT OF KINGSTON ROSS PASNAK LLP AS THE AUDITORS OF THE COMPANY UNTIL THE NEXT ANNUAL MEETING OF SHAREHOLDERS AND TO AUTHORIZE THE DIRECTORS TO FIX THEIR REMUNERATION.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. ELECTION OF DIRECTORS**

*Advance Notice By-law*

The general by-laws of the Company include provisions that establish a framework for advance notice of nominations of directors by shareholders of the Company (the "**Advance Notice By-law**"). In particular, the Advance Notice By- law is intended to increase transparency and promote informed decision making by providing all shareholders with reasonable notice of director nominations and sufficient information to vote on all the director nominees. The Advance Notice By-law sets a deadline for a certain number of days before a shareholders' meeting for a shareholder to notify the Company of its intention to nominate one or more directors, and explains the information that must be included with the notice for it to be valid. The Advance Notice By-law applies at an annual meeting of shareholders or a special meeting of shareholders that was called to elect directors, and may be waived by the Board. It does not affect the ability of shareholders to requisition a meeting.

As of the date of this Circular and in respect of the Meeting, the Company has received no nominations purportedly made under the requirements of the Advance Notice By-law or otherwise.

**Nominees for Election as Directors**

The Board currently consists of five (5) directors. It is proposed that the five (5) people listed below be nominated for election as directors of the Company to hold office until the next annual meeting or until their successors are elected or appointed. All five (5) of the proposed nominees are currently directors of the Company and have been so since the respective dates indicated.

**The Board of Directors recommends that shareholders vote for the election of the proposed nominees set out below. Unless otherwise instructed, proxies and voting instructions given pursuant to this solicitation by the management of the Company will be voted for the election of the proposed nominees. If any proposed nominee**

is unable to serve as a director, the individuals named in the enclosed form of proxy reserve the right to nominate and vote for another nominee at their discretion.

The following table sets forth for each nominee for election as director: place of residence; present principal occupation and, if not a director elected to the present term of office, principal occupations held in the last five (5) years, if different; the number of Common Shares beneficially owned, directly or indirectly, or over which control or direction, directly or indirectly, is exercised at the Record Date; the date the nominee became a director of the Company; current or proposed membership on committees of the Board; and whether or not the Board has determined each nominee to be independent. There are no contracts, arrangements or understandings between any director or executive officer or any other person pursuant to which any of the nominees has been nominated.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name, province or state and**<br>**country of residence and**<br>**position, if any, held in the**<br>**Company** | **Principal occupation or**<br>**employment and, if not a**<br>**director elected to the**<br>**present term of office,**<br>**occupation during the past**<br>**5 years** | **Served as Director**<br>**of the Company**<br>**since** | **Number of Common**<br>**Shares beneficially owned,**<br>**directly or indirectly, or**<br>**controlled or directed at**<br>**present<sup>(1)</sup>** | **Percentage of**<br>**Voting Shares**<br>**Owned or**<br>**Controlled** |
| **Antanas (Tony) Guoga**<br>**Kaunas, Lithuania**<br>**Executive Chairman,**<br>**President and Chief**<br>**Executive Officer** | **Chief Executive Officer of**<br>**the Company. Mr. Guoga**<br>**served as a member of the**<br>**Seimas of the Republic of**<br>**Lithuania, the legislative**<br>**branch of government in**<br>**Lithuania, from October**<br>**2020 to January 13, 2021.**<br>**Prior thereto, he was a**<br>**member of the European**<br>**Parliament from 2014 to**<br>**2019.** | **August 11, 2020** | **47598167** | **32.90%** |
| **Mohammed Adham**<br>**London, United Kingdom**<br>**Chief Investment Officer,**<br>**Director** | **Chief Investment Officer**<br>**and Director of the**<br>**Company and Chief**<br>**Executive Officer of**<br>**Bitaccess Inc.** | **August 14, 2018** | **3703224** | **2.55%** |
| **Jon Matonis<sup>(2)</sup>**<br>**London, United Kingdom**<br>**Chief Economist and**<br>**Director** | **Chief Economist of the**<br>**Company and businessman,**<br>**monetary economist.** | **April 9, 2020** | **300000** | **0.20%** |
| **Rubsun Ho<sup>(2)(3)</sup>**<br>**Toronto, Ontario,**<br>**Canada**<br>**Director** | **Chief Executive Officer of**<br>**Crowdmatrix Inc. and**<br>**Head of Trading**<br>**Compliance of Kognitiv**<br>**Corporation (2015 -**<br>**Present); and Co-**<br>**founder/Director of Caravel**<br>**Law PC (2016 - Present)** | **June 16, 2021** | **Nil** | **N/A** |
| **Leah Wald<sup>(2)(3)</sup>**<br>**Tennesse, USA**<br>**Director** | **Chief Executive Officer of**<br>**Valkyrie Investments Inc.**<br>**(2020 - present), VP**<br>**Portfolio Management at**<br>**Exponential Group (2020),**<br>**Partner & EVP, Lucid**<br>**Investment Strategies, LLC**<br>**(2017 - 2020)** | **September 2, 2021** | **Nil** | **N/A** |

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*Notes:*

*(1) The information as to voting securities beneficially owned, controlled or directed, not being within the knowledge of the Company, has been furnished by the respective nominees individually.*

*(2) Member of the Audit Committee.*

*(3) Member of the Compensation Committee.*

***Corporate Cease Trade Orders or Bankruptcies***

Other than as set out below, no director or executive officer of the Company is, as at the date hereof, or was within ten (10) years before the date of this Circular, a director, chief executive officer or chief financial officer of any company (including the Company), that: (a) was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or (b) was subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

Douglas Harris, the Company's Chief Financial Officer also serves as Chief Financial Officer of Braingrid Limited ("**Braingrid**"). While Mr. Harris was serving as Chief Financial Officer of Braingrid Limited, on July 22, 2020, the Ontario Securities Commission issued a cease trade order against Braingrid for failure to file its annual financial statements and related management's discussion and analysis and certificates for Braingrid's fiscal year ended January 31, 2020 and for its three-month period ended April 30, 2020. Braingrid subsequently made the required filings and the cease trade order was revoked by the Ontario Securities Commission on September 9, 2020.

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Antanas Guoga, the Company's Executive Chairman and Director also services as a Director of Tony G Co-Investment Holdings Ltd. ("**Tony G**"). On June 6, 2022, the Ontario Securities Commission issued a cease trade order against Tony G for failure to file its annual financial statements and related management's discussion and analysis and certificates for Tony G's fiscal year ended January 31, 2022. The cease trade order was revoked on July 21, 2023.

***Personal Bankruptcies***

Other than as set out below, no director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company: (a) is, as at the date hereof, or has been within the ten (10) years before the date of this Circular, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or (b) has, within the ten (10) years before the date of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

***Penalties and Sanctions***

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

**Conflicts of Interest**

The directors or officers of the Company are, or may become, directors or officers of other companies with businesses which may conflict with the business of the Company. In accordance with the *Business Corporations Act (Ontario)*, directors are required to act honestly and in good faith with a view to the best interests of the Company. In addition, directors in a conflict of interest position are required to disclose certain conflicts to the Company and to abstain from voting in connection with the matter. To the best of the Company's knowledge, there are no known existing or potential conflicts of interest between the Company or a subsidiary of the Company and a director or officer of the Company or a subsidiary of the Company as a result of their outside business interests at the date hereof. Accordingly, conflicts of interest may arise which could influence these persons in evaluating possible acquisitions or in generally acting on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. AMENDMENT TO THE ARTICLES OF THE CORPORATION - NAME CHANGE**

The Company intends to change its name to such name as the Board, in its sole discretion, may determine and as may be acceptable to the Director appointed under the *Business Corporation Act* (Ontario) (the "**Name Change**"). Management feels that the Name Change is in the best interests of the Company in order to reflect contemplated changes in the business activities of the Corporation.

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At the Meeting, shareholders will be asked to consider and, if deemed advisable, to pass, with or without variation, a special resolution, the text of which is attached as Exhibit "A" to the Notice of Meeting (the "**Name Change Resolution**"), authorizing the amendment of the Articles to effect the Name Change.

In order to pass the Name Change Resolution, at least two thirds of the votes cast by the shareholders present at the Meeting in person or by proxy must be voted in favour of the Name Change Resolution. If the Name Change Resolution does not receive the requisite shareholder approval, the Corporation will continue under its present name.

The Board recommends that shareholders vote in favour of the Name Change Resolution to approve the Name Change as set out above.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE APPROVAL OF THE NAME CHANGE RESOLUTION, UNLESS THE SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS COMMON SHARES ARE TO BE VOTED AGAINST SUCH RESOLUTION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. STOCK OPTION PLAN**

The Company has adopted a "rolling" stock option plan (the "**Plan**") for officers, directors, employees and consultants of the Company. The Plan provides for the issue of stock options to acquire up to 10% of the issued and outstanding Common Shares as at the date of grant, subject to standard anti-dilution adjustment. This is a "rolling" stock option plan as the number of Common Shares reserved for issue pursuant to the grant of stock options will increase as the number of issued and outstanding Common Shares increases. At no time will more than 10% of the outstanding Common Shares be subject to grant under the Plan. If a stock option expires, is exercised or otherwise terminates for any reason, the number of Common Shares in respect of that expired, exercised or terminated stock option shall again be available for the purpose of the Plan. The principal features of the Plan are described in more detail below in the section entitled "Statement of Executive Compensation - Stock Option Plan and other Incentive Plans".

The Plan was last approved and confirmed by the shareholders of the Company at the annual and special meeting of shareholders held on September 12, 2023.

The Plan is a "rolling" stock option plan and under Policy 6.5 of the Canadian Securities Exchange (the "**CSE**"), a listed company on the CSE is required to obtain the approval of its shareholders for a "rolling" stock option plan at each annual meeting of shareholders. Accordingly, shareholders will be asked to approve the following resolution:

**"BE IT RESOLVED THAT:**

1. the stock option plan of the Company as described in the management information circular dated July 2, 2024 be and it is hereby confirmed and approved"

In accordance with the policies of the CSE, the Plan must be approved by the majority of votes cast at the Meeting on the resolution.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE APPROVAL OF THE PLAN RESOLUTION UNLESS A SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS COMMON SHARES ARE TO BE VOTED AGAINST SUCH RESOLUTION.**

**STATEMENT OF CORPORATE GOVERNANCE PRACTICES**

Effective corporate governance is a priority for the Board of Directors. In developing the Company's corporate governance practices, the Board of Directors has taken into account the rules and guidelines adopted by the Canadian Securities Administrators ("**CSA**") in June 2005 (National Instrument 58-101 - *Disclosure of Corporate Governance Practices* ("**NI 58-101**") and National Policy 58-201 - *Corporate Governance Guidelines* (collectively, the "**CSA Governance Requirements**"), which require the Company to disclose certain information relating to its corporate governance practices.

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The CSA Governance Requirements set out best practices drawn from existing Canadian standards and U.S. regulatory standards. the Company is required to describe certain aspects of its corporate governance practices in its management information circular, including a discussion of any practices that are inconsistent with the CSA Governance Requirements. This information is set out in Appendix B to this Circular.

The CSA has also enacted rules regarding the composition of audit committees (Multilateral Instrument 52-110 - *Audit Committees*) and the certification of an issuer's disclosure controls and procedures (Multilateral Instrument 52-109 - *Certification of Disclosure in Issuers' Annual and Interim Filings*). The Company is currently in compliance with these rules. For the year ended September 30, 2023, the Chief Executive Officer and Chief Financial Officer were required to file a certificate to certify that the Company's annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings and the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

In this Circular, the term "independent" director has the corresponding meaning given to the term "independent" director in NI 58-101; namely, a director who has no direct or indirect material relationship with the Company which could, in the view of the Board of Directors, be reasonably expected to interfere with the exercise of the Director's independent judgement. A majority of the nominees standing for election as directors are "independent" within the meaning of NI 58-101.

**COMMITTEES OF THE BOARD OF DIRECTORS**

The Board of Directors has established two (2) standing committees: (1) an Audit Committee (the "**Audit Committee**"); and (2) a Compensation Committee (the "**Compensation Committee**"). A brief description of each committee is set out below.

***Audit Committee.***

The Audit Committee assists the Board in fulfilling its responsibilities for oversight of financial and accounting matters. The Audit Committee recommends the auditors to be nominated and reviews the compensation of the auditors. The Audit Committee is directly responsible for overseeing the work of the auditors, must pre-approve non- audit services, be satisfied that adequate procedures are in place for the review of our public disclosure of financial information extracted or derived from the Company's financial statements and must establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters. The current members of the Audit Committee are the Rubsun Ho (Chair), Jon Matonis and Leah Wald. For additional information concerning the Audit Committee please refer to the section entitled "Audit Committee" below.

***Compensation Committee.***

The Compensation Committee assists the Board in fulfilling its responsibilities for compensation philosophy and guidelines, and fixing compensation levels for the Company's executive officers. In addition, the Compensation Committee is charged with reviewing the Plan and proposing changes thereto, approving any awards of options under the Plan and recommending any other employee benefit plans, incentive awards and perquisites with respect to the Company's executive officers.

Each of the members of the Compensation Committee has direct experience that is relevant to their responsibilities regarding executive compensation of the Company. Accordingly, as a result of this collective experience, the Compensation Committee has knowledge of typical day-to-day responsibilities and challenges faced by the Company's management team, the role of a Board in reviewing the executive compensation of a reporting issuer, and first-hand knowledge regarding executive compensation policies and practices in the private sector, all of which are beneficial to the committee in the context of its review of the Company's compensation policies and practices.

The current members of the Compensation Committee are Rubsun Ho and Leah Wald who will both be standing for re-election.

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**STATEMENT OF EXECUTIVE COMPENSATION**

**Introduction**

This section of the Circular explains how the Company's executive compensation program is designed and operated with respect to the President and Chief Executive Officer (referred to as the "**CEO**" in the narrative discussion in this section and under the section entitled "Executive Compensation Tables"), Chief Financial Officer ("**CFO**"), and the three other most highly compensated executive officers included in this reported financial year whose total compensation was, individually, more than $150,000 (together with the CEO and CFO collectively referred to as the "**Named Executive Officers**" or "**NEOs**", and each a "**Named Executive Officer**" or "**NEO**"). This section also identifies the objectives and material elements of compensation awarded to the NEOs and the reasons for the compensation. For a complete understanding of the executive compensation program, this Compensation Discussion and Analysis should be read in conjunction with the Summary Compensation Table and other executive compensation- related disclosure included in this Circular.

The current NEO's of the Company are Antanas Guoga and Douglas Harris. During the most recently completed financial year ended September 30, 2023, the following individuals were NEOs of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Antanas Guoga, Chief Executive Officer until October 27, 2021 and re-appointed as Chief Executive Officer on August 26, 2022, Executive Chairman from October 27, 2021 and President from August 26, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Douglas Harris, Chief Financial Officer from April 12, 2021

**Director and Named Executive Officer Compensation**

***Director and named executive officer compensation, excluding compensation securities***

The following table sets forth a summary of the compensation earned by the NEOs and the Directors for the Company's two most recently completed financial years, excluding compensation securities:

**Table of Compensation Excluding Compensation Securities**

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| | | | |
|:---|:---|:---|:---|
| **Name and position** | **Year** | **Salary,**<br>**consulting fee,**<br>**director fee,**<br>**retainer or**<br>**commission**<br>**($)** | **Total**<br>**compensation**<br>**($)** |
| **Antanas (Tony)**<br>**Guoga<sup>(1)</sup>**<br>**Chief Executive**<br>**Officer, President**<br>**Chairman and**<br>**Director** | **2023**<br>**2022** | **120000**<br>**107667** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** | **120000**<br>**107667** |
| **Douglas Harris**<br>**Chief Financial**<br>**Officer** | **2023**<br>**2022** | **77500**<br>**60000** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** | **77500**<br>**60000** |
| **Mohammed Adham**<br>**Chief Investment**<br>**Officer and**<br>**Director** | **2023**<br>**2022** | **72000**<br>**72000** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** | **72,000**<br>**Nil** |
| **Jon Matonis<sup>(3)</sup>**<br>**Director** | **2023**<br>**2022** | **72000**<br>**72000** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** | **72000**<br>**72000** |
| **Peter Tutlys**<br>**Former Director** | **2023**<br>**2022** | **20000**<br>**20000** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** **Nil**<br>**Nil** | **20000**<br>**20000** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Rubsun Ho**<br>**Director** | **2023**<br>**2022** | **25000**<br>**20000** | **Nil**<br>**Nil** | **20000**<br>**20000** |
| **Leah Wald**<br>**Director** | **2023**<br>**2022** | **20000**<br>**20000** | **Nil**<br>**Nil** | **20.000**<br>**20000** |
| **Daniel Cawrey<sup>(4)</sup>**<br>**Former Chief**<br>**Operating Officer** | **2023**<br>**2022** | **N/A**<br>**25,142** | **N/A**<br>**Nil** | **N/A**<br>**25,142** |
| **Jeffrey Gao<sup>(5)</sup>**<br>**Former Chief**<br>**Executive Officer** | **2023**<br>**2022** | **N/A**<br>**225,000** | **N/A**<br>**Nil** | **N/A**<br>**225,000** |

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*Notes:*

&nbsp;&nbsp;&nbsp;&nbsp;*(1) Mr. Guoga was appointed CEO of the Company on August 11, 2020 and resigned as CEO on October 27, 2021. Mr. Guoga was appointed as CEO of the Company on August 26, 2022.*

&nbsp;&nbsp;&nbsp;&nbsp;*(2) Mr. Matonis was appointed as a Director of the Company on April 9, 2020. He provided services to the Company through his consulting company, The Hole of Roy, LLC, as described below.*

&nbsp;&nbsp;&nbsp;&nbsp;*(3) Mr. Tutlys was appointed as a Director of the Company on June 16, 2021. Mr. Tutlys resigned effective September 12, 2023.*

&nbsp;&nbsp;&nbsp;&nbsp;*(4) Mr. Cawrey was appointed as Chief Operating Officer of the Company on June 14, 2021 and resigned on October 26, 2021.*

&nbsp;&nbsp;&nbsp;&nbsp;*(5) Mr. Gao was appointed as CEO of the Company on October 27, 2021 and resigned on August 26, 2022.*

***Stock Options and Other Compensation Securities***

The following table sets out all compensation securities that were granted or issued to NEOs and directors of the Company during the most recently completed financial year of the Company for services provided or to be provided, directly or indirectly, to the Company or any of its subsidiaries.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** | &nbsp;&nbsp;&nbsp;**Compensation Securities** |
| &nbsp;&nbsp;&nbsp;**Name and position** | **Type of**<br>**compens**<br>**ation**<br>**security** | **Number of**<br>**compensatio**<br>**n securities,**<br>**number of**<br>**underlying**<br>**securities**<br>**,and**<br>**percentage**<br>**of class** | **Date of**<br>**issue or**<br>**grant** | **Issue,**<br>**conver-**<br>**sion or**<br>**exer-**<br>**cise**<br>**price** | **Closing**<br>**price of**<br>**security or**<br>**underlying**<br>**security on**<br>**the grant**<br>**date ($)** | **Closing price**<br>**of security or**<br>**underlying**<br>**security at**<br>**financial**<br>**year end ($)** | **Expiry date** |
| **Antanas (Tony)**<br>**Guoga**<br>**Chief Executive**<br>**Officer, President**<br>**Chairman and**<br>**Director** | Stock<br>Option | 2,000,000<br>exercisable<br>for<br>2,000,000<br>Common<br>Shares<br>representing<br>1.31% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Douglas Harris**<br>**Chief Financial**<br>**Officer** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |
| **Mohammed Adham**<br>**Chief Investment**<br>**Officer and**<br>**Director** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |
| **Jon Matonis**<br>**Director** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |
| **Rubsun Ho**<br>**Director** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |
| **Peter Tutlys**<br>**Former Director** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Leah Wald**<br>**Director** | Stock<br>Option | 279,500<br>exercisable<br>for 279,500<br>Common<br>Shares<br>representing<br>0.18% of the<br>outstanding<br>number of<br>Common<br>Shares | November<br>18, 2022 | $0.10 | $0.095 | $0.09 | November 18,<br>2027 |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Calculated on a partially diluted basis as at September 30, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The options vest immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The fair value of each stock option at the date of grant was estimated using Black-Scholes option pricing model to be consistent with the audited consolidated financial statements and included the following assumptions: share price of $0.10, dividend yield of 0%, expected volatility, based on historical volatility, of 161.6%, risk free interest of 3.32% and expected life of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) As at September 30, 2023, the officers and directors of the Company who had such positions with the Company as at such date held options as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Guoga held 2,000,000 stock options to purchase an aggregate of 2,000,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Harris held 2,179,500 stock options to purchase an aggregate of 1,900,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Adham held 1,279,500 stock options to purchase an aggregate of 1,000,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Matonis held 1,879,500 stock options to purchase an aggregate of 2,500,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Ho held 1,279,500 stock options to purchase an aggregate of 1,000,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Tutlys held 1,279,500 stock options to purchase an aggregate of 1,000,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ms. Wald held 1,279,500 stock options to purchase an aggregate of 1,000,000 Common Shares and no other compensation securities of the Company.

***Exercise of Compensation Securities by Directors and NEOs***

None of the NEOs or directors of the Company exercised any compensation securities during the most recently completed financial year of the Company.

**Stock Option Plan and other Incentive Plans**

The Company has no equity compensation plans other than the Stock Option Plan.

**Employment, Consulting and Management Agreements**

The following is a summary of the material terms of each agreement or arrangement under which compensation was provided during the Company's most recently completed financial year or is payable in respect of services provided to the company or any of its subsidiaries that were performed by a director or named executive officer, or performed by any other party but are services typically provided by a director or a named executive officer.

***Tony Guoga***

During the most recently completed financial year ended September 30, 2021, Tony Guoga provided his services to the Company pursuant to the terms of an independent consultant agreement (the "**Guoga Agreement**"), effective August 8, 2020, between the Company and Tony Guoga. The Guoga Agreement provides that Mr. Guoga will provide to the Company executive, advisory and management services to the Company in the role as Chief Executive Officer of the Company and shall devote approximately 50% of his monthly time to such services. For his services under the Guoga Agreement, the Company agreed to pay to Mr. Guoga the nominal sum of €1.00 per annum and to reimburse him his expenses incurred in performing such services. Either the Company or Mr. Guoga may terminate the Guoga Agreement by providing 30 days' written notice to the other party. If the Company terminates the Guoga Agreement without cause, it will pay to Mr. Guoga a lump sum payment equal to three months fees. Upon the termination of the Guoga Agreement Mr. Guoga shall, at the written request of the Board, resign as a director of the Company and from all other offices held with the Company and any of its subsidiaries, as applicable. The Guoga Agreement contains customary provisions restricting the disclosure of the Company's confidential information and provides that Mr. Guoga shall not solicit the employees or consultants of the Company for a period of 12 months from the termination of thereof. On November 11, 2021, concurrent with the appoint of Jeffrey Gao as Chief Executive Officer, Mr. Guoga was appointed Executive Chairman and the Guoga Agreement was amended to include a payment of $10,000 per month to Mr. Guoga for his services as Executive Chairman, commencing November 11, 2021.

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***Mohammed Adham***

During the most recently completed financial year ended September 30, 2021, Mohammed Adham provided his services to the Company pursuant to the terms of a consulting agreement (the "**Adham Agreement**"), dated June 28, 2018, between the Company and Mohammed Adham. The Adham Agreement provides that Mr. Adham will provide consulting services to the Company in the role as Chief Investment Officer of the Company. Under the terms of the Adham Agreement, the Company agreed to pay to Mr. Adham a monthly fee of $6,000, and to reimburse him for expenses incurred by him in performing the services under the Adham Agreement. Either the Company or Mr. Adham may terminate the Adham Agreement by providing 30 days' written notice to the other party. The Adham Agreement contains customary provisions restricting the disclosure of the Company's confidential information. On May 31, 2024 the Adham Agreement was amended to a total monthly fee of USD $6,000 and to be directed to Pavonis Limited, a UK limited company where Mr. Adham is employed.

***Jon Matonis***

During the most recently completed financial year ended September 30, 2021, Jon Matonis provided his services to the Company pursuant to the terms of a consulting agreement (the "**Matonis Agreement**"), dated December 1, 2018, as amended on July 31, 2020, between the Company and The Hole of Roy, LLC ("**HOR**"). The Matonis Agreement provides that HOR will provide consulting services to the Company. Under the terms of the Matonis Agreement, the Company agreed to pay to HOR a monthly fee of $6,000, and to reimburse him for expenses incurred by him in performing the services under the Matonis Agreement. Either the Company or HOR may terminate the Matonis Agreement by providing 30 days' written notice to the other party. The Matonis Agreement contains customary provisions restricting the disclosure of the Company's confidential information.

***Douglas Harris***

Douglas Harris, the Company's Chief Financial Officer provides his services to the Company pursuant to the terms of a consulting agreement (the "**Harris Agreement**"), dated April 9, 2021, between the Company and Harris Capital Company ("**HCC**"). The initial term of the Harris Agreement is a period of 24 months, commencing on April 12, 2021. The Harris Agreement provides that HCC will provide to the Company the services of Douglas Harris as the Company's Chief Financial Officer on a consultancy basis. Under the terms of the Harris Agreement, the Company agreed to pay to HCC a monthly fee of $5,000, and to reimburse him for expenses incurred by him in performing the services under the Harris Agreement. In addition, the Company also made a one-time grant of stock options, entitling Mr. Harris to purchase 1,500,000 Common Shares at a price of $0.30 per share for a period of five years, subject to vesting provisions. Either the Company or HCC may terminate the Harris Agreement by providing 90 days' prior written notice to the other party. If the Company or HCC provides such written notice of termination, the Company shall be liable only for the consulting fees which are due and payable by the Company for the period up to, and including, the effective date of termination. In addition, in the event that a change of control should occur during the term of the Harris Agreement with respect to the Company, and the parties newly in control of the Company do not wish to retain HCC to perform the services, then HCC shall be entitled to an immediate pay-out of 12 months of monthly consulting fees. The Harris Agreement contains customary provisions restricting the disclosure of the Company's confidential information. The Harris Agreement was amended to include a payment of $7,500 per month to HCC for Mr. Harris' services as Chief Financial Officer, commencing April 1, 2023.

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**Compensation Discussion and Analysis**

**<u>Objectives of the Compensation Program</u>**

The objectives of the Company's executive compensation program are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to reward individual contributions in light of overall business results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to be competitive with the companies with whom the Company competes for talent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to align the interests of the executives with the interests of the shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to attract and retain executives who can help the Company achieve its objectives.

**<u>Elements of Executive Compensation</u>**

Total direct compensation ("**Total Direct Compensation**") represents the combined value of fixed compensation and performance-based variable incentive compensation, comprising: base salary, short-term incentive compensation in the form of an annual cash bonus, and long-term incentive compensation in the form of stock options.

The allocation of Total Direct Compensation value to these different compensation elements is not based on a formula, but rather is intended to reflect the Compensation Committee's discretionary assessment of an executive officer's past contribution and ability to contribute to future short and long-term business results, all consistent with the circumstances of the Company.

*Base Salary*

The base salary of each NEO is reviewed annually and is the fixed portion of each NEO's Total Direct Compensation and is designed to provide income certainty consistent with the circumstances of the Company.

*Short-term Incentives*

The annual cash bonus is a short-term incentive that is intended to reward each executive officer for his yearly individual contribution in the context of overall annual corporate performance.

*Long-term Incentives*

Long-term incentive compensation is provided through the granting of stock options. This incentive arrangement is designed to motivate executives to achieve longer-term business results, align their interests with those of the shareholders and to attract and retain executives. Participants benefit only if the market value of the Company's Common Shares at the time of a stock option exercise is greater than the exercise price of the stock options at the time of the relevant grant. Stock options generally vest at the date of the grant, or as otherwise determined by the Board. Other than the Plan described below, the Company does not have a share-based awards plan or long-term incentive plan.

**<u>Determination of Compensation</u>**

Rather than strictly applying formulas and weightings to forward-looking performance objectives, which may lead to unintended consequences for compensation purposes, the Compensation Committee exercises its discretion and uses sound judgment in making compensation determinations. For this reason, the Compensation Committee does not measure performance using any pre-set formulas in determining compensation awards for NEOs.

The Board does not feel it is necessary to assess the effectiveness of individual board members. Each board member has considerable experience which is sufficient to meet the needs of the Company. On an annual basis, however, the Board assesses the contributions of each of the individual directors, and of the Board as a whole, in order to determine whether each is functioning effectively.

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**Stock Options**

*Stock Option Granting Process*

Generally, stock option grants are determined annually. The CEO makes recommendations to the Compensation Committee and the Board regarding individual stock option awards for all recipients. The CEO does not engage in discussions with the Compensation Committee or the Board regarding his own stock option grants. The Compensation Committee and the Board deliberate and consider relevant market data and other information in order to determine the CEO's stock option grant.

The Compensation Committee and the Board review the appropriateness of the stock option grant recommendations from the CEO for all eligible employees and accepts or adjusts these recommendations. The Compensation Committee and the Board are responsible for approving all individual stock option grants, including grants that are awarded outside the annual compensation deliberation process for such things as promotions or new hires.

**Other Compensation**

Executive officers may receive other benefits that the Company believes are reasonable and consistent with its overall executive compensation program. Benefits may include traditional health programs, bonus payments and limited executive perquisites.

**How the Company Determines Compensation**

*The Role of the Compensation Committee*

The Compensation Committee approves, or recommends for approval, all compensation to be awarded to the NEOs. The Compensation Committee reviews various materials in its deliberations before considering or rendering decisions.

The Compensation Committee has full discretion to adopt or alter management recommendations or to consult its own external advisors.

The Compensation Committee believes it is important to follow appropriate governance practices in carrying out its responsibilities with respect to the development and administration of executive compensation and benefit programs. Governance practices followed by the Compensation Committee include holding in-camera sessions without management present and, when necessary, obtaining advice from external consultants.

*The Role of Management*

Management has direct involvement in and knowledge of the business goals, strategies, experiences and performance of the Company. As a result, management plays an important role in the compensation decision-making process. The Compensation Committee engages in active discussions with the CEO concerning the determination of performance objectives.

The CEO makes recommendations to the Compensation Committee regarding the amount and type of compensation awards for other members of executive management. The CEO does not engage in discussions with the Compensation Committee regarding his own Total Direct Compensation. The Compensation Committee is provided with relevant market data and other information as requested, in order to support the Compensation Committee's deliberations regarding the CEO's Total Direct Compensation and subsequent recommendation to the Board.

**Performance Assessment**

Rather than strictly applying formulas and weightings to forward-looking performance objectives, which may lead to unintended consequences for compensation purposes, the Compensation Committee exercises its discretion and uses sound judgment in making compensation determinations. For this reason, the Compensation Committee does not measure performance using any pre-set formulas in determining compensation awards for NEOs.

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*Corporate Performance*

In recent years, the Company has had objectives primarily related to the collection of the international arbitration award, the distribution of any collected funds to its shareholders in a timely and tax efficient manner, and operating the Company in a cost-effective manner. These objectives are utilized by the Compensation Committee as a reference when making compensation decisions.

*Individual Performance*

The Compensation Committee, in consultation with the CEO, reviews the achievements and overall contribution of each individual executive officer who reports to the CEO. The Compensation Committee has in-camera discussions to complete an independent assessment of the performance of the CEO.

**Previously Awarded Compensation**

The Compensation Committee approves or recommends compensation awards which are not contingent on the number, term or current value of other outstanding compensation previously awarded to the individual. The Compensation Committee believes that reducing or limiting current stock option grants or other forms of compensation because of prior gains realized by an executive officer would unfairly penalize the officer and reduce the motivation for continued high achievement. Similarly, the Compensation Committee does not purposely increase long-term incentive award values in a given year to offset less-than-expected returns from previous grants.

During the annual Total Direct Compensation deliberations, the Compensation Committee is provided with summaries of the history of each executive officer's previously awarded Total Direct Compensation. These summaries help the Compensation Committee to track changes in an executive officer's Total Direct Compensation from year to year and to remain aware of the historical compensation for each individual.

**Decisions Related to Executive Compensation That Were Taken After Year End**

There were no decisions related to executive compensation that were taken after the year ended September 30, 2023.

**Pension Plan Benefits**

The Company does not have any pension plans that provide for payments or benefits at, following, or in connection with retirement or provide for retirement or deferred compensation plans.

**Termination and Change of Control Benefits**

The Company has not provided compensation, monetary or otherwise, during the preceding fiscal year, to any person who now acts or has previously acted as a Named Executive Officer or director of the Company in connection with or related to the retirement, termination or resignation of such person. The Company has not provided any compensation to such persons as a result of a change of control of the Company, its subsidiaries or affiliates.

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

The following table sets forth information with respect to all compensation plans of the Company under which equity securities are authorized for issue as of September 30, 2023:

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| | | | |
|:---|:---|:---|:---|
| **Plan category** | **Number of securities to be**<br>**issued upon exercise of**<br>**outstanding options and**<br>**rights (#) <sup>(1)</sup>** | **Weighted-average exercise**<br>**price of outstanding options**<br>**and rights**<br>**($)** | **Number of securities remaining**<br>**available for future issue under**<br>**equity compensation plans**<br>**(#)** |
| **Equity compensation plans**<br>**approved by securityholders** | 13106500 | 0.16 | 2100218 |

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| | | | |
|:---|:---|:---|:---|
| **Plan category** | **Number of securities to be**<br>**issued upon exercise of**<br>**outstanding options and**<br>**rights (#) <sup>(1)</sup>** | **Weighted-average exercise**<br>**price of outstanding options**<br>**and rights**<br>**($)** | **Number of securities remaining**<br>**available for future issue under**<br>**equity compensation plans**<br>**(#)** |
| **Equity compensation plans not**<br>**approved by securityholders** | Nil | Nil | Nil |
| **Total** | 13106500 | 0.16 | 2100218 |

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*Notes:*

(1) The Plan is a "rolling" stock option plan whereby the maximum number of Common Shares that may be reserved for issue may not exceed 10% of the number of outstanding Common Shares at the time of the stock option grant. As at the date of this Circular, 14,467.346 stock options may be reserved for issuance pursuant to the Stock Option Plan, 13,106,500 stock options have been issued and 1,306,866 stock options are still available for issue.

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

Other than as otherwise disclosed in this Circular, no informed person or proposed director of the Company, or associate or affiliate of any of the foregoing, has had any material interest, direct or indirect, in any transaction since the commencement of the most recently completed financial year of the Company or in any proposed transaction which has materially affected or would materially affect the Company.

**INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS**

No director or officer of the Company or person who acted in such capacity in the last financial year of the Company, or any other individual who at any time during the most recently completed financial year of the Company was a director of the Company or any associate of the Company, is indebted to the Company, nor is any indebtedness of any such person to another entity the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company.

**DIRECTORS' AND OFFICERS' INSURANCE AND INDEMNIFICATION**

In accordance with the provisions of the *Business Corporations Act* (Ontario), the Company's by-laws provide that the Company will indemnify a director or officer, a former director or officer, or a person who acts or acted at the Company's request as a director or officer of a body corporate of which the Company is or was a shareholder or creditor, and his or her heirs and legal representatives, against all costs, charges and expenses, including amounts paid to settle an action or to satisfy a judgment, reasonably incurred in respect of any civil, criminal or administrative action or proceeding to which he or she was made a party by reason of being or having been a director or officer of the Company or such other company if he or she acted honestly and in good faith with a view to the best interests of the Company and, in the case of a criminal or administrative action or proceeding that is enforced by monetary penalty, he or she had reasonable grounds to believe that his or her conduct was lawful. If the Company becomes liable under the terms of its by-laws, the insurance coverage will extend to its liability; however, each claim will be subject to a deductible.

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**External Auditor Service Fees**

The following fees were incurred by the Company for the financial years ended September 30, 2023 and 2022 for professional services rendered to the Company:

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| | | |
|:---|:---|:---|
| **Fees** | **2023** | **2022** |
| Audit Fees<sup>(1)</sup> | 137000 | $146769 |
| Audit-Related Fees<sup>(2)</sup> | Nil | Nil |
| Tax Fees<sup>(3)</sup> | 5000 | Nil |
| All Other Fees Other Fees<sup>(4)</sup> | Nil | Nil |

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Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Audit Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for audit services. Included in these aggregate fees are the amounts for the audit of the annual consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Audit-Related Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for assurance and related services by the current or former auditor, as applicable, that are reasonably related to the performance of the audit or review of the Company's financial statements and are not Audit Fees, including for consultations on accounting developments and the accounting for potential corporate transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Tax Fees are the aggregate fees billed or accrued, as the case may be, for the applicable period in each of the last two fiscal years for professional services rendered, as applicable, for tax compliance, tax advice, and tax planning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) All Other Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for products and services provided by the current or former auditor, as applicable, other than Audit Fees, Audit-Related Fees or Tax Fees.

**AUDIT COMMITTEE INFORMATION REQUIRED IN THE**

**INFORMATION CIRCULAR OF A VENTURE ISSUER**

National Instrument 52-110 - *Audit Committees* ("**NI 52-110**") requires that certain information regarding the Audit Committee of a "venture issuer" (as that term is defined in NI 52-110) be included in the management information circular sent to shareholders in connection with the issuer's annual meeting. The Company is a "venture issuer" for the purposes of NI 52-110.

**Audit Committee Charter**

The full text of the charter of the Company's Audit Committee is attached hereto as Appendix B (the "**Audit**

**Committee Charter").**

**Composition of the Audit Committee**

The current members of the Audit Committee are the Rubsun Ho (Chair), Jon Matonis, and Leah Wald. As a result, immediately following the Meeting, the members of the Audit Committee will be Rubsun Ho (Chair), Jon Matonis, and Leah Wald.

All current Audit Committee members are "independent" and financially literate in accordance with NI 52-110, except for Jon Matonis, who currently accepts, indirectly through The Hole of Roy, LLC, consulting, advisory or other compensatory fees from the Company in connection with his role as the Chief Economist of the Company. If Mr. Matonis is re-elected as a director at the Meeting, from and after the Meeting, Mr. Matonis will not receive any compensatory fees from the Company other than as remuneration for acting in his capacity as a member of the Board or any Board committee. Each proposed member of the Audit Committee is "financially literate" and will from the time of his re-election or election as a director at the Meeting be "independent", as such terms are defined in accordance with NI 52-110.

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**Relevant Education and Experience**

The following is a description of the education and experience of each current member of the Audit Committee that is relevant to the performance of his responsibilities as an Audit Committee member and, in particular, any education or experience that would provide the member with:

1. an understanding of the accounting principles used by the Company to prepare its financial statements;

2. the ability to assess the general application of such accounting principles in connection with the accounting for estimates, accruals and reserves;

3. experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements, or experience actively supervising one or more persons engaged in such activities; and

4. an understanding of internal controls and procedures for financial reporting.

***Rubsun Ho, Director:*** Rubsun Ho has been a lawyer and entrepreneur for 24 years and has successfully exited two prior businesses. He was a co-founder of Cognition LLP, an alternative, virtual law firm, which sold half of its assets in 2016 to Axiom Global Inc., the world's largest alternative legal services provider. He currently remains a partner in Caravel Law PC (the rebranded remaining half of Cognition), which has grown to over 90 lawyers across three provinces. He was also the co-founder and CEO of Crowdmatrix Inc., a registered Exempt Market Dealer and one of the first investment crowdfunding platforms in Canada. Crowdmatrix was sold to Kognitiv Corporation in 2019, where Rubsun remains as Head of Trading Compliance. Before Cognition, Rubsun was VP of Business Development at Wysdom Inc., where he helped raise US$57 million in financing for the wireless Internet startup. He started his legal career as a securities law associate in the Toronto and New York offices of Stikeman Elliott. Rubsun has a Bachelor of Commerce from McGill University and a Bachelor of Laws from the University of Toronto.

***Jon Matonis, Director:*** Mr. Matonis is a monetary economist with a particular focus on non-political digital currencies and privacy tech. His career has included senior influential posts at VISA, VeriSign, Sumitomo Bank and Hushmail. He was a founding director of the Bitcoin Foundation.

***Leah Wald, Director:*** Ms. Wald is the chief executive officer of cyrptocurrency investment firm Valkyrie. Ms. Wald also recently served as the VP of Portfolio Management at Exponential. Previously, Ms. Wald served as a Partner at Lucid Investments, an asset management firm where she launched their bitcoin investment arm. Ms. Wald began her career working at the World Bank in the Africa Region.

**Audit Committee Oversight**

Since the commencement of the Company's most recently completed financial year, there has not been a recommendation of the Audit Committee to nominate or compensate an external auditor which was not adopted by the Board.

**Reliance on Exemptions in NI 52-110**

The Company is a "venture issuer" for the purposes of NI 52-110. Accordingly, the Company is relying upon the exemption in section 6.1 of NI 52-110 providing that the Company is exempt from the application of Part 3 *(Composition of the Audit Committee) and Part 5 (Reporting Obligations) of NI 52-110.*

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**Pre-Approval Policies and Procedures**

The Audit Committee has adopted specific policies and procedures for the engagement of non-audit services, as described in the Audit Committee Charter.

**ADDITIONAL INFORMATION**

**Interest of Certain Persons or Companies in Matters to be Acted Upon**

Except as otherwise disclosed in this Circular, no person who has been a director or executive officer of the Company since the beginning of the last financial year and no associate or affiliate of any such director or executive officer has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Meeting.

**Interest of Informed Persons in Material Transactions**

Other than as stated elsewhere in this Circular, no informed person, director, executive officer, nominee for director, any person who beneficially owns, directly or indirectly, Common Shares carrying more than 10% of the voting rights attached to all outstanding shares of the Company, or any associated or affiliate of such persons, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any transaction or any proposed transaction which has materially affected or would materially affect the Company.

**Other Business**

Management of the Company knows of no matters to come before the Meeting other than the matters referred to in the Notice of Meeting. However, if matters not now known to management should come before the Meeting, Common Shares represented by proxies solicited by management will be voted on each such matter in accordance with the best judgment of the nominees voting same.

**AVAILABILITY OF DISCLOSURE DOCUMENTS**

Additional information relating to the Company is available on SEDAR+ at <u>www.sedarplus.ca</u>, the CSE's website at <u>www.thecse.com</u> under the Company's corporate profile and on the Company's website at www.Cypherpunkholdings.com. Financial information about the Company is provided in the Company's comparative financial statements and management's discussion and analysis of financial and operating results for the financial year ended September 30, 2023.

A copy of this Circular has been sent to each director of the Company, to the applicable regulatory authorities, to each shareholder entitled to receive notice of the Meeting and to the auditor of the Company. If you would like to obtain, at no cost to you, a copy of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the comparative financial statements and MD&A of the Company for the year ended September 30, 2023, together with the accompanying report of the auditor thereon or any interim financial statements or MD&A of the Company for periods subsequent to September 30, 2023, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Circular,

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| | |
|:---|:---|
| &nbsp;&nbsp;**Please send your request to:** | &nbsp;&nbsp;**Cypherpunk Holdings Inc.** |
|  | &nbsp;&nbsp;**217 Queen Street West, Suite 401** |
|  | &nbsp;&nbsp;**Toronto, ON M5V 0R2** |
|  | &nbsp;&nbsp;**email: doug@cypherpunkholdings.com** |
|  | &nbsp;&nbsp;**Attention: Doug Harris** |

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**APPROVAL OF THE BOARD OF DIRECTORS**

The contents of this Circular and the sending of it to the Shareholders, to each director of the Company, to the Company's auditor and to the appropriate governmental agencies have been approved by the Board.

Unless otherwise noted, the information contained herein is given as of July 2, 2024.

**DATED** 2<sup>nd</sup> day of July, 2024.

**BY ORDER OF THE BOARD**

*"Antanas Guoga" (signed)*

President and Chief Executive Officer

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**APPENDIX A**

**CORPORATE GOVERNANCE DISCLOSURE**

The Company believes that effective corporate governance practices are fundamental to the overall success of a company. National Instrument 58-101 - *Disclosure of Corporate Governance Practices* ("**NI 58-101**") requires the Company to disclose its corporate governance practices by providing in the Circular the disclosure required by Form 58-101F2 - *Corporate Governance Disclosure (Venture Issuers)* ("**Form 58-101F2**"). National Instrument 58-201 - *Corporate Governance Guidelines* establishes corporate governance guidelines which apply to all public companies. The Company's disclosure of corporate governance practices pursuant to NI 58-101 is set out below in the form required by Form 58-101F2:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Governance Disclosure Guidelines under** | **<u>Comments</u>** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>NI 58-101</u>** |  |
| &nbsp;&nbsp;**1.** | **Board of Directors** |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Disclose how the board of directors (the "Board") facilitates its exercise of independent supervision over management, including:** | **The Board is responsible for the stewardship of the Company and for the supervision of management to protect shareholder interests. The Board oversees the development of the Company's strategic plan and the ability of management to continue to deliver on the corporate objectives.**  |
|  | **(i) the identity of directors who are independent; and** | **As at September 30, 2022, the following directors were independent:**  |
|  |  | **Leah Wald** |
|  |  | **Rubsun Ho** |
|  | **(ii) the identity of directors who are not independent, and the basis for that determination.**  | **As at September 30, 2022, the following directors were not independent:**  |
|  |  | **Antanas Guoga, Jon Matonis and Mohammed Adham.** |
| &nbsp;&nbsp;**2.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Directorships** |  |
|  | **If a director is presently a director of any other issuer that is a reporting issuer (or the equivalent) in a jurisdiction or a foreign jurisdiction, identify both the director and the other issuer.**  | **Jon Matonis is a director of UAB NexPay, RACE-CAP Inc. and CommerceBlock, Ltd. Antanas Guoga is the Chairman of Tony G Co-Inventment Holdings Ltd.**  |
| &nbsp;&nbsp;**3.** | **Orientation and Continuing Education** |  |
|  | **Briefly describe what steps, if any, the Board takes to orient new board members, and describe any measures the board takes to provide continuing education for directors.**  | **The Board recognizes the importance of providing new directors with an orientation upon election to the Board and with continuing education in the business of the Company. The Board takes measures to ensure that appropriate orientation and education programs are in place for new directors and committee members.**  |

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| | | |
|:---|:---|:---|
|  |  | **Upon becoming a member of the Board, an individual will be provided with copies of the Company's principal continuous disclosure documents and a series of interviews or meetings with senior personnel in order to be informed on various business, operational and organizational aspects of the Company. Orientation will also include such things as:**  |
|  |  | **organized visits to the Company's facilities;** |
|  |  | **familiarization with the service providers and partners;**  |
|  |  | **company history and other relevant data;** |
|  |  | **information concerning mission, goals, strategy, philosophy and major policies of the Company;** |
|  |  | **review of recent analyst reports;** |
|  |  | **information pertaining to personal liability and insurance coverage;** |
|  |  | **rules for purchasing and selling securities of the Company; and** |
|  |  | **rules regarding insider information.** |
|  |  | **Continuing education could include: reports from the Chief Executive Officer on industry developments to the Board of Directors at each meeting. Directors are also regularly provided with copies of the Company's ongoing continuous disclosure documents, and receive management presentations and information and presentations from the Company's external advisors and experts, as appropriate, from time to time.**  |
| &nbsp;&nbsp;**4.** | **Ethical Business Conduct** |  |
|  | **Describe what steps, if any, the board takes to encourage and promote a culture of ethical business conduct.**  | **The Board of Directors has a written disclosure policy aimed at informative, timely and broadly disseminated disclosure of material information to the market, in accordance with applicable securities legislation.** |
|  |  | **The Board has also established a written insider trading policy which is intended as a guideline to eliminate any transaction by an insider which would not be in full compliance with applicable securities legislation or which, by implication, might suggest trading by insiders was carried out when they were in possession of privileged or material information not yet disclosed to the public.** |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**5.** | &nbsp;&nbsp;**Nomination of Directors** |  |
|  | **Disclose what steps, if any, are taken to identify new candidates for board nomination, including:<br>(i) who identifies new candidates; and**<br>**(ii) the process of identifying new candidates.** | **The directors of Cypherpunk are encouraged to submit names of potential directors. Candidates' names are also obtained through analysis of other corporate boards and through reviews of senior corporate executives in other types of enterprises. Shareholders are also welcome to submit names for consideration. Potential director candidates are reviewed by the Board on a regular basis as needed.**  |
|  | **Disclose what steps, if any, are taken to identify new candidates for board nomination, including:<br>(i) who identifies new candidates; and**<br>**(ii) the process of identifying new candidates.** |  |
|  | **Disclose what steps, if any, are taken to identify new candidates for board nomination, including:<br>(i) who identifies new candidates; and**<br>**(ii) the process of identifying new candidates.** | **The Board reviews the size, structure and composition of the Board from time to time so that when a vacancy occurs, the most appropriate candidate can be readily identified. When a vacancy occurs, the Board reviews and selects suitable candidates.** |
|  |  | **Once the Board agrees on the best candidate, an approach is made to that person in a manner deemed most appropriate by the Board. The approach would be followed by personal interviews with the prospective director involving the Chairman of the Board and other Board members as circumstances warrant.** |
|  |  | **If there is agreement to serve as a director, a Board orientation process is then carried out by the Chairman of the Board. After appointment or election, as the case may be, orientation with management is carried out.** |
| &nbsp;&nbsp;**6.** | **Compensation** |  |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** | **The Compensation Committee is charged with developing, for recommendation to the Board, a compensation philosophy and guidelines for the CEO and other executive officers of the Company. It recommends to the Board the level of compensation for the CEO and other executive officers of the Company. The Compensation Committee also considers and, if deemed appropriate, makes recommendations to the Board about any option or benefit plans to be established for the CEO and other executive officers of the Company.** |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** |  |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** | **The Compensation Committee is also charged with developing, for recommendation to the Board, a compensation philosophy and guidelines for the directors. It recommends the level of compensation for the directors based on a review of compensation paid by other public companies of the same size as the Company**<br>**and in the same industry as the Company.** |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** |  |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** | **Further details are also set out in the Circular under the heading "Compensation Discussion and Analysis".**  |
|  | **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:<br>(i) who determines compensation; and<br>(ii) the process of determining compensation.** |  |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**7.** | **Other Board Committees** |  |
|  | **If the board has standing committees other than the audit, compensation and nominating committees, identify the committees and describe their function.** | **Other than the Audit Committee and the Compensation Committee, there are no other standing committees of the Board.** |
|  | **If the board has standing committees other than the audit, compensation and nominating committees, identify the committees and describe their function.** |  |
|  | **If the board has standing committees other than the audit, compensation and nominating committees, identify the committees and describe their function.** | **Further details are also set out in the Circular under the heading "Committees of the Board of Directors".** |
| &nbsp;&nbsp;**8.** | **Assessments** |  |
|  | **Disclose what steps, if any, that the board takes to satisfy itself that the board, the committees and its individual directors are performing effectively.** | **The Board conducts annually an evaluation of the effectiveness of the Board and its committees. In such evaluation, the Board assesses the effectiveness of the Board and its committees, the adequacy of information provided to directors, communication processes between the Board and management, agenda planning for Board and committee meetings and strategic planning.** |

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**APPENDIX B**

**AUDIT COMMITTEE CHARTER**

***Name***

There shall be a committee of the Board of Directors (the "Board") of **Cypherpunk** Holdings Inc. (the "**Company**") known as the Audit Committee (the "Committee").

***Purpose***

The Committee has been established to assist the Board in fulfilling its oversight responsibilities and fiduciary obligations, in contemplation that the increasing regulatory focus on governance is principally employing audit committees as the instrumentality of the regulations. The primary functions and areas of responsibility of the Committee are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Ensure the financial statements of the Company accurately reflect the financial condition of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Review as well as report and provide recommendations to the Board on the annual and interim consolidated financial statements and related Management's Discussion and Analysis ("**MD&A**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Identify and monitor the management of the principal risks that could impact the financial reporting of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Ensure the Company has a disaster recovery plan in the case that any of the principal risks become realized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Make recommendations to the Board regarding the appointment, terms of engagement and compensation of the external auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Monitor the integrity of the Company's financial reporting process and system of internal controls regarding financial reporting and accounting compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Oversee the work of the external auditors engaged for the purpose of preparing or issuing an auditor's report or performing other audit, review or attest services for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Resolve disagreements between management and the external auditor regarding financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Receive the report of the external auditors, who must report directly to the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Review and approve all external communication in respect of the Company's financial press releases; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Provide an avenue of communication among the Company's external auditors, management, the internal accounting department and the Board.

***Composition and Qualifications***

All Committee members shall meet all applicable requirements prescribed under the Business Corporations Act (Ontario), as well as any requirements or guidelines prescribed from time to time under applicable securities legislation, including National Instrument 52-110 as amended, restated or superseded. The Committee shall be comprised of not less than three directors as determined from time to time by the Board. Each member shall be an independent director who is free from any direct or indirect relationship that would, in the view of the Board, reasonably interfere with the exercise of the member's independent judgment. While it is not necessary for members to have a comprehensive knowledge of generally accepted accounting principles and standards, all members of the Committee shall be "financially literate" so as to be able to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the issues raised by the Company's financial statements. A director who is not financially literate may be appointed to the Committee by the Board provided that such director becomes financially literate within a reasonable period following his or her appointment, and provided that the Board has determined that such appointment will not materially adversely affect the ability of the Committee to act independently.

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Committee members shall be appointed by the Board on recommendation by the Nomination Committee. The Board shall designate the Chair of the Committee and in so doing shall consider any recommendation of the Corporate Governance Committee. If a Chair is not designated or present at any meeting, the members of the Committee may designate a Chair by majority vote. The Chair shall have responsibility for ensuring that the Committee fulfills its mandate and duties effectively.

Each member of the Committee shall continue to be a member until a successor is appointed, unless the member resigns, is removed or ceases to be a director. The Board, following consultation with the Corporate Governance Committee, may fill a vacancy at any time.

***Meetings***

The Committee shall meet at least four times annually, or more frequently as circumstances dictate as determined by the Chair, and at least once in each fiscal quarter. A schedule for each of the meetings shall be prepared and disseminated to Committee members by the Chief Financial Officer prior to the start of each fiscal year.

A majority of the members of the Committee shall constitute a quorum for meetings.

An agenda shall be prepared by the Chair of the Committee as far in advance of each meeting as reasonably practicable. Minutes of all meetings of the Committee shall be prepared as soon as possible following the meeting and submitted for approval at or prior to the next following meeting.

The Committee should meet privately at least once per year with senior management of the Company, the director of the internal accounting department of the Company, the Company's external auditors, and as a committee to discuss any matters that the Committee or any of these groups believe should be discussed.

***Specific Responsibilities and Duties***

Specific responsibilities and duties of the Committee shall include, without limitation, the following:

**General Review Procedures**

1. Review and reassess the adequacy of this Charter at least annually and submit any proposed amendments to the Board for approval.

2. Review the Company's annual audited financial statements, related MD&A, and other documents prior to filing or distribution of such documents or issuing a press release in respect of the financial statements and MD&A. Review should include discussion with management and external auditors of significant issues regarding accounting principles, practices, and significant management estimates and judgments.

3. Annually, in consultation with management, external auditors, and internal auditors, consider the integrity of the Company's financial reporting processes and controls. Discuss significant financial risk exposures and the steps management has taken to monitor, control and report such exposures. Review significant findings prepared by the external auditors and the internal auditing department together with management's responses.

4. Review the effectiveness of the overall process for identifying the principal risks affecting financial reporting and provide the Committee's views to the Board of Directors.

5. Review with financial management and the external auditors the Company's quarterly financial results, related MD&A and other documents prior to the filing or distribution of such documents or issuing a press release in respect of the financial statements and MD&A. Discuss any significant changes to the Company's accounting principles. The Chair of the Committee may represent the entire Committee for purposes of this review.

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**External Auditors**

6. The external auditors are ultimately accountable to the Committee, as representatives of the shareholders. The external auditors must report directly to the Committee, who shall review the independence and performance of the auditors and annually recommend to the Board the appointment of the external auditors or approve any discharge of auditors when circumstances warrant. The Committee shall approve the compensation of the external auditors.

7. The Committee must pre-approve all non-audit services to be provided to the Company or its subsidiary entities by the auditors, unless such non-audit services are reasonably expected to constitute not more than five (5) percent of the total fees paid by the Company to the external auditor during the particular fiscal year, or if the Company did not recognize such services as non-audit services at the time of engagement. The pre-approval requirement will be satisfied if such non-audit services are promptly brought to the attention of the Committee prior to the completion of the audit and approved by the Committee, or by one or more of its members to whom authority to grant such approvals has been delegated by the Committee. In addition, the Committee may satisfy the pre-approval requirement by adopting specific and detailed policies and procedures for the engagement of non-audit services, so long as the Committee is informed of each non-audit service and such procedures do not include delegation of the Committee's responsibilities to management.

8. On an annual basis, the Committee should review and discuss with the external auditors all significant relationships they have with the Company that could impair the auditors' independence.

9. Review the external auditors' audit plan and discuss and approve the audit scope, staffing, locations, reliance upon management, and internal audit and general audit approach.

10. Prior to releasing the year-end earnings, discuss the results of the audit with the external auditors. Discuss any matters that are required to be communicated to audit committees in accordance with the standards established by the Canadian Institute of Chartered Accountants.

11. Consider the external auditors' judgments about the quality and appropriateness of the Company's accounting principles as applied in the Company's financial reporting.

***Internal Audit Department and Legal Compliance***

12. Review and approve management's decisions related to the need for internal auditing.

13. Review the mandate, budget, plan, changes in plan, activities, organizational structure and qualifications of the internal audit department, as needed.

14. Review the appointment, performance and replacement of the senior internal audit executive.

15. Review significant reports prepared by the internal audit department together with management's response and follow-up to these reports.

Other Miscellaneous Responsibilities

16. Annually assess the effectiveness of the Committee against its Mandate and report the results of the assessment to the Board.

17. Prepare and disclose a summary of the Mandate to shareholders.

Perform any other activities consistent with this Mandate, the Company's by-laws and governing law, as the Committee or the Board deems necessary or appropriate.

Review and approve the Company's hiring policies regarding partners, employees and former partners and employees of the present and former external auditor of the Company.

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**Appendix A**

***Authority***

The Committee shall have the authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Delegate approval-granting authority to pre-approve non-audit services by the external auditor to one or more of its members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Engage independent counsel and other advisors as it determines necessary to carry out its duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Set and pay the compensation for any advisors employed by the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Communicate directly with the internal and external auditors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Establish procedures for the receipt, retention and treatment of complaints received by the Company regarding internal accounting controls, or auditing matters and the confidential, anonymous submission by employees of the Company regarding questionable accounting or auditing matters.

***Reporting***

The Committee shall report its deliberations and discussions regularly to the Board and shall submit to the Board the minutes of its meetings.

***Resources***

The Committee shall have full and unrestricted access to all of the Company's books, records, facilities and personnel as well as the Company's external auditors and shall have the authority, in its sole discretion, to conduct any investigation appropriate to fulfilling its responsibilities. The Committee shall further have the authority to retain, at the Company's expense, such special legal, accounting or other consultants or experts as it deems necessary in the performance of its duties and to request any officer or employee of the Company or the Company's external counsel or auditors to attend a meeting of the Committee.

***Limitation on the Oversight Role of the Committee***

Nothing in this Charter is intended, or may be construed, to impose on any member of the Committee a standard of care or diligence that is in any way more onerous or extensive than the standard to which all members of the Board are subject.

Each member of the Committee shall be entitled, to the fullest extent permitted by law, to rely on the integrity of those persons and organizations within and outside the Company from whom he or she receives information, and the accuracy of the information provided to the Company by such persons or organizations.

While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company's financial statements and disclosures are complete and accurate and in accordance with generally accepted accounting principles and applicable rules and regulations, each of which is the responsibility of management and the Company's external auditor.

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## Exhibit 99.18

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**CYPHERPUNK HOLDINGS INC.**

**Request for Financial Statements**

2024

In accordance with National Instrument 51-102 - Continuous Disclosure Obligations, registered and beneficial securityholders may elect annually to receive a copy of our annual financial statements and corresponding management's discussion and analysis ("MD&A") or interim financial statements and the corresponding MD&A, or both.

If you wish to receive these documents by mail, please return this completed form to:

**TSX Trust Company**

**301 - 100 Adelaide Street West**

**Toronto ON M5H 4H1<br>or fax to 416-595-9593**

**Rather than receiving the financial statements by mail, you may choose to view these documents on the SEDAR+ website at** **<u>www.sedarplus.ca</u>** **.**

I HEREBY CERTIFY that I am a registered and/or beneficial holder of the Company, and as such, request that my name be placed on the Company's Mailing List in respect to its annual and/or interim financial statements and the corresponding MD&A for the current financial year.

Please send me: ☐ Annual Financial Statements with MD&A <br>☐ Interim Financial Statements with MD&A

***PLEASE PRINT***

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|:---|:---|:---|
| FIRST NAME |  | LAST NAME |
| ADDRESS |  |  |
| CITY | PROVINCE/STATE | POSTAL / ZIP CODE |
| COUNTRY |  |  |

---

SIGNED:

*(Signature of Shareholder)*

------

## Exhibit 99.19

------

![](exhibit99-19x001.jpg) <br>

------

![](exhibit99-19x002.jpg)

------

## Exhibit 99.20

------

![](exhibit99-20x001.jpg)

------

![](exhibit99-20x002.jpg)

------

## Exhibit 99.21

------

**Cypherpunk Announces Corporate Update on Current Solana Holdings, Solana Staking Activity & Solana Trading Strategy**

**TORONTO, July 16, 2024** - Cypherpunk Holdings Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Cypherpunk" or the "Company"), a Canadian-based holding vehicle dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem, announced an update on the Company's Solana (SOL) holdings, staking activity and trading strategy.

**<u>Increase in Solana Holdings</u>**

The Company announced a significant increase in its SOL holdings, with 63,003.952599862 (CAD $13,968,842.49), SOL currently in Coinbase custody, including SOL used for staking (see below), from nil at March 31, 2024, its last reported fiscal period.

**<u>Solana Staking Operations</u>**

In tandem with this purchase, the Company has elevated its commitment to the Solana ecosystem by operating <u>its own SOL validator</u>. It is also staking its own SOL node, with 49,917 SOL ($11,067,285.17).

**<u>Solana Options Trading</u>**

Concurrent with its purchase and staking of SOL, the Company announced that it is operating a SOL options trading strategy.

**About Cypherpunk HoldingsInc.**<br> Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information**

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking information includes, but is not limited to the Company's expectation or belief regarding its investment in shares of Animoca Brand and Animoca Brand's future performance or business. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer<br>doug@cypherpunkholdings.com <br>Tel: 647-946-1300

**SOURCE:** Cypherpunk Holdings Inc.

**Media contact:** cypherpunk@mgroupsc.com

------

## Exhibit 99.22

------

**Cypherpunk Announces Corporate Update on Current Holdings**

TORONTO, July 31, 2024 - Cypherpunk Holdings Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Cypherpunk" or the "Company"), a Canadian-based holding vehicle dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem, announced an update on the Company's holdings and staking activity.

The following is a summary of the Company's investment holdings:

**Solana Holdings increase to 86,294.0575 SOL**

The Company announced a significant increase in its SOL holdings, to **86,294.0575** SOL ($21.6 million) currently held in Coinbase custody, including SOL used for staking. The average acquisition price of this SOL is approximately US$143, excluding commission and staking costs. As at March 31, 2024, the Company's last financial reporting period, Cypherpunk held nil SOL.

**Solana Staking Revenue**

Following its commitment to the Solana ecosystem by operating its own SOL validators and generating recurring revenues, the Company has generated gross revenue of 230.35 SOL ($57,639) since SOL staking commenced on June 14, 2024.

**Bitcoin**

The Company currently holds 56.29229277 bitcoin in Coinbase custody with a value of approximately $5.2 million, a decline of 109.9038424 bitcoin from the 166.1961351 bitcoin held at March 31, 2024. Subsequent to March 31, 2024 the Company used 44.7962054 bitcoin to exercise 20,000 SOL options with a US$147 strike price; 67 bitcoin were sold for gross proceeds of approximately $5.8 million, and 2.06 bitcoin of investment income has been realized to the date hereof.

**Sale of Animoca Brand Shares**

Subsequent to March 31, 2024 the Company sold its remaining 6,590,909 shares of Animoca Brands Corporation Ltd., for gross proceeds of $5.1 million to hold nil. As at March 31, 2024, the Company held 6,590,909 with a book value of $5.6 million.

**Cash**

As at the date hereof the Company has approximately $4.9 million in cash.

**Other Investments**

The company has other assets and private equity/venture capital investments with a book value of approximately $50,000 and $442,000 respectively.

------

**Liabilities**

As at the date hereof the Company has net liabilities of approximately $115,000.

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information**

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking information includes, but is not limited to the Company's expectation or belief regarding its investment in shares of Animoca Brand and Animoca Brand's future performance or business. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Officer/Director Contact:

Doug Harris

Chief Financial Officer <br>doug@cypherpunkholdings.com <br>Tel: 416-480-2488

SOURCE: Cypherpunk Holdings Inc.

Media contact: cypherpunk@mgroupsc.com

------

## Exhibit 99.23

------

![](exhibit99-23x001.jpg)

**INTERIM UNAUDITED CONDENSED CONSOLIDATED**

**FINANCIAL STATEMENTS**

**FOR THE NINE MONTHS ENDED**

**JUNE 30, 2024 AND 2023**

**(Unaudited - Expressed in Canadian Dollars)**

------

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying unaudited interim unaudited condensed consolidated financial statements of Cypherpunk Holdings Inc. for the nine months ended June 30, 2024 (the "Interim Statements) were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the note 2 of these Interim Statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at June 30, 2024.

**CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES**

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officers, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at June 30, 2024.

**NOTICE TO READER**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying Interim Statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these Interim Statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of financial statements by an entity's auditor.

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **June 30,**<br>**2024** | **September 30,**<br>**2023** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 3) | $**8550548** | $1927280 |
| Receivables and prepaid expenses (note 4) | **102839** | 117138 |
|  | **8653387** | 2044418 |
| Cryptocurrencies (note 6) | **16507308** | 7852418 |
| Investments (note 7) | **2524327** | 6464119 |
| Other assets (note 8) | **36418** | 60145 |
| Deferred tax asset (note 17) | **633145** | 633145 |
|  | $**28354585** | $17054245 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (note 9 and 14) | $**477337** | $226476 |
|  | **477337** | 226476 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 10) | **16966421** | 17864782 |
| Reserves | **17731280** | 17669046 |
| Accumulated other comprehensive income (loss) | **5758736** | (196846) |
| Accumulated deficit | **(12579189)** | (18509213) |
|  | **27877248** | 16827769 |
|  | $**28354585** | $17054245 |

---

Nature of operations and going concern (note 1)

Subsequent events (note 19)

SIGNED ON BEHALF OF THE BOARD

*(Signed) "Rubsun Ho"* *(Signed) "Moe Adham"* <br> Director Director

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2024** | 2023 | **2024** | 2023 |
| **Income (loss)** |  |  |  |  |
| Unrealized gain (loss) on investments (note 7) | $**(104813)** | $(1787928) | $**2544198** | $(1497869) |
| Realized (loss) on investments (note 7) | **(1437975)** |  | **(1167314)** | (1178765) |
| Other income | **171890** | 17573 | **182341** | 150772 |
| Dividend income | **245798** | 8716 | **248411** | 26356 |
| Realized gain on disposition of assets (Note 8) | **-** | - | **-** | 536633 |
|  | **(1125100)** | (1761639) | **1807636** | (1962873) |
| **Expenses** |  |  |  |  |
| Consulting fees (note 13) | **203877** | 102241 | **310237** | 323905 |
| Professional fees (note 13) | **101856** | 22620 | **146322** | 249068 |
| General and administrative | **111772** | 40545 | **151179** | 143946 |
| Stock-based compensation (notes 11 and 13) | **43758** | 113817 | **81834** | 411805 |
| Director fees (note 13) | **14702** | 15000 | **25000** | 45000 |
| Amortization (note 8) | **15818** | 7957 | **23727** | 62976 |
| Foreign exchange (gain) loss | **(119636)** | 49732 | **(75419)** | 391254 |
|  | **372147** | 351912 | **662880** | 1627954 |
| **Income (loss) for the period** | **(1497247)** | (2113551) | **1144756** | (3590827) |
| **Other comprehensive income** |  |  |  |  |
| Items that may be reclassified to profit or loss | **1676104** |  | **5955582** |  |
| Items that will not be reclassified to profit or loss | **4780495** | 493923 | **4785268** | 557028 |
| **Total comprehensive income (loss)** | $**4959352** | $(1619628) | $**11885606** | $(3033799) |
| **Earnings (loss) per share - basic and diluted** | $**(0.01)** | $(0.010) | $**0.01** | $(0.02) |
| **Weighted average number of shares outstanding - basic and diluted** | 151866655 | 152942734 | 151967467 | 157423661 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Common**<br>**Shares** | <br>**Capital**<br>**Stock** | <br>**Reserves** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income** | <br>**Retained**<br>**Deficit** | <br>**Total** |
| **Balance, September 30, 2022** | **160070718** | $**18572547** | $**17238101** | $**-** | $**(12226885)** | $**23583763** |
| Stock-based compensation (note 11) |  |  | 297988 |  |  | 297988 |
| Purchase of shares for cancellation (note 10) | (2960000) | (256355) |  |  |  | (256355) |
| Unrealized gain on cryptocurrencies |  |  |  | 63105 |  | 63105 |
| Net loss for the period | - | - | - | - | (1477276) | (1477276) |
| **Balance, March 31, 2023** | **157110718** | $**18316192** | $**17536089** | $**63105** | $**(13704161)** | $**22211225** |
| Stock-based compensation (note 11) |  |  | 132957 |  |  | 132957 |
| Purchase of shares for cancellation (note 10) | (5043535) | (451410) |  |  |  | (451410) |
| Net loss for the period |  |  |  |  | (4805052) | (4805052) |
| Items that may be reclassified to profit or loss | - | - | - | (259951) | - | (259951) |
| **Balance, September 30, 2023** | **152067183** | $**17864782** | $**17669046** | $**(196846)** | $**(18509213)** | $**16827769** |
| Stock-based compensation (note 11) |  |  | 81834 |  |  | 81834 |
| Options exercised | 209625 | 20963 |  |  |  | 20963 |
| Fair value of options exercised |  | 19600 | (19600) |  |  |  |
| Purchase of shares for cancellation (note 10) | (7603343) | (938924) |  |  |  | (938924) |
| Net income for the period |  |  |  |  | 1144756 | 1144756 |
| Items that may be reclassified to profit or loss |  |  |  | 10740850 |  | 10740850 |
| Items reclassified to retained earnings | - | - | - | (4785268) | 4785268 | - |
| **Balance, June 30, 2024** | **144673465** | $**16966421** | $**17731280** | $**5758736** | $**(12579189)** | $**27877248** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Nine months ended June 30,** | **2024** | **2023** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| Income (loss) for the period | $**1144756** | $(3590827) |
| **Adjustments for:** |  |  |
| Unrealized (gain) loss on investments | **(2544198)** | 1497869 |
| Realized loss (gain) on investments | **1167314** | 1178765 |
| Realized (gain) loss on sale of assets | **-** | (536633) |
| Stock-based compensation | **81834** | 411805 |
| Foreign exchange loss | **(75419)** | 341057 |
| Other non-cash (income) loss | **(324822)** | (59865) |
| Amortization of assets sold | **-** | (302352) |
| Amortization | **23727** | 62976 |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **14299** | 77205 |
| Treasury management assets | **-** | 60037 |
| Accounts payable and accrued liabilities | **250861** | (96564) |
| **Cash used in operating activities** | **(261648)** | (956527) |
| **Financing activities** |  |  |
| Exercise of options and warrants | **20963** |  |
| Purchase of shares for cancellation | **(938924)** | (707765) |
| **Cash provided by financing activities** | **(917961)** | (707765) |
| **Investing activities** |  |  |
| Purchase of cryptocurrencies | **(6255607)** | (8120383) |
| Proceeds from sale of cryptocurrencies | **8675529** | 26257 |
| Proceeds from sale of assets | **270661** | 1172863 |
| Purchase of investments | **-** | (9434917) |
| Sale/redemption of investments | **5112294** | 1591591 |
| **Cash used in investing activities** | **7802877** | (14764589) |
| **Change in cash and cash equivalents** | **6623268** | (16428881) |
| **Cash and cash equivalents, beginning of the period** | **1927280** | 18537221 |
| **Cash and cash equivalents, end of the period** | $**8550548** | $2108340 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Cypherpunk Holdings Inc. (the "Company" or "Cypherpunk") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company is an actively managed crypto investment company. The Company's objective is to invest in crypto companies that drive technological innovation, demonstrate market leadership, achieve real-world adoption, navigate regulatory environments effectively, and form strategic partnerships for sustained growth (the "Investment Objective"). Cypherpunk executes its Investment Objective through three lines of effort: (1) Treasury management - Maintaining a core portfolio of cryptocurrencies for long-term growth, enhanced with risk management strategies to minimize volatility, and generating yield through lending, staking, and liquidity provisioning; (2) Private equity focused on early stage companies in the DeFi and blockchain sectors; and (3) Active investments to generate yield through strategic activities, including Bitcoin mining. The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 16). Additionally, during the nine months ended June 30, 2024, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

These unaudited interim condensed consolidated financial statements for the nine months ended June 30, 2024 (the "Interim Statements") have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other assets to supports its operations for the next twelve months from the date of the issuance of the Interim Statements.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Statement of Compliance**

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. These Interim Statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

The policies applied in these Interim Statements are based on IFRSs issued and outstanding as of August 29, 2024, the date the Board of Directors approved the Interim Statements. The same accounting policies and methods of computation are followed in these Interim Statements as compared with the most recent audited annual financial statements as at and for the year ended September 30, 2023. Any subsequent changes to IFRS that are given effect in the Company's annual financial statements for the year ending September 30, 2024 could result in restatement of these Interim Statements.

**3. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at June 30, 2024 and September 30, 2023.

---

| | | |
|:---|:---|:---|
| | **June 30,**<br>**2024** | September 30,<br>2023 |
| Cash in banks | $**8550548** | $1927280 |
|  | $**8550548** | $1927280 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**4. RECEIVABLES AND PREPAID EXPENSES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **June 30,**<br>**2024** | September 30,<br>2023 |
| Prepaid expenses | $**24125** | $54477 |
| Harmonized sales tax | **78714** | 62661 |
|  | $**102839** | $117138 |

---

**5. TREASURY MANGEMENT INVESTMENTS**

During the nine months ended June 30, 2024 the Company resumed its treasury management investment strategy to generate income on its cryptocurrency assets, previously executed during the year ended September 30, 2022. As at the date hereof, the treasury management investment strategy involves selling covered European call options (each, an "Option") on OTC markets. During the nine months ended June 30, 2024, the Company transferred 50 Bitcoin to each of Zerocap Pty Ltd. ("Zerocap") and Wintermute Trading Ltd. ("Wintermute") to use as collateral. The Company recognizes premium income upon the sale of an Option. In the event the Option expires in-the-money, the Company's underlying Bitcoin used as collateral to sell the Option are sold at the strike price of the Option. There were no Options written during the year ended September 30, 2023. Prior to June 30, 2024, 51.3566 Bitcoin held at Zerocap were sold to hold nil Bitcoin. All cryptocurrencies pledged as collateral were withdrawn from treasury management accounts and there were no open treasury management trades at June 30, 2024.

**6. CRYPTOCURRENCIES**

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 117.15 | $**3360302** | $**4541039** | $**10050002** |
| Solana | 32205.87 | 4563456 | 6255607 | 6457306 |
| **Balance at June 30, 2024** |  | $**7923758** | $**10796646** | $**16507308** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 215.37 | $**6038069** | $**8172065** | $**7852418** |
| **Balance at September 30, 2023** |  | $**6038069** | $**8172065** | $**7852418** |

---

(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

The activity of the Company's cryptocurrencies, excluding the Bitcoin posted as collateral at Wintermute and Zerocap (Note 5), for the nine months ended June 30, 2024 and the year ended September 30, 2023 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022** | $**3035** |
| Cash purchases | 8120383 |
| Cash sales | (19620) |
| Investment income received in cryptocurrencies | 31625 |
| Dividend income received in cryptocurrencies | 36642 |
| Change in fair value | (319647) |
| **Balance at September 30, 2023** | $**7852418** |
| Cash purchases | 6255607 |
| Cash sales | (1713770) |
| Gain of cash sales | 927439 |
| Investment income received in cryptocurrencies | 201822 |
| Cryptocurrencies posted as collateral | (3794251) |
| Crptocurrency collateral returned | 748237 |
| Foreign exchange gain | 6008 |
| Change in fair value | 6023798 |
| **Balance at June 30, 2024** | $**16507308** |

---

The activity of the Company's cryptocurrencies posted as collateral (note 5) for the nine months ended June 30, 2024 and year ended September 30, 2023, is as follows:

---

| | |
|:---|:---|
| **Balance at Setember 30, 2022 and September 30, 2023** | $**-** |
| Cryptocurrencies posted as collateral | 3794250 |
| Cryptocurrency collateral returned | (748274) |
| Investment income received in cryptocurrencies | 122103 |
| Cash sales | (6961759) |
| Gain on cash sales | 3850554 |
| Foreign exchange gain | 590 |
| Change in fair value | (57464) |
| **Balance at June 30, 2024** | $**-** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**7. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **June 30,**<br>**2024** | <br>Quantity | September 30,<br>2023 |
| Animoca Brands Corporation Limited (a) | **2856630** | $**2082575** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358953** | 19860 | 366932 |
| NGRAVE.IO (c) | **138966** | **82799** | 138966 | 80976 |
| Lucy Labs Flagship Offshore Fund SPC (d) | **500** | **-** | 500 |  |
| Streetside Development, LLC (e) | **1429** | **-** | 1429 | 122646 |
| zkSNACKS Limited - Shares (f) | **4500** | **-** | 4500 | 772668 |
|  |  | $**2524327** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). During the nine months ended June 30, 2024, the Company sold 6,233,370 Animoca shares at an average price of AUD $0.92 per share ($0.82 CAD) for gross proceeds of AUD $5,732,910 ($5,112,294 CAD). At June 30, 2024, the Company determined the fair value of its remaining 2,856,630 Animoca shares to be $2,082,575.

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at June 30, 2024.

(c) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at June 30, 2024.

(d) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023.

(e) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $nil as at June 30, 2024 recognizing an unrealized loss of $122,646 in the Interim Statements (2022 - $nil).

(f) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. During the nine months ended June 30, 2024, the Company received dividend income of approximately 2.0 bitcoin (2023 - 0.99 bitcoin). The Company determined the fair value of its Streetside shares was $nil as at June 30, 2024 recognizing an unrealized loss of $772,668 in the Interim Statements (2022 - $nil).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the nine months ended June 30, 2024.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

The activity of investments for the nine months ended June 30, 2024 and the year ended September 30, 2023 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2022** | $**3859808** |
| Cash purchases | 9434917 |
| Proceeds from sales | (1591591) |
| Realized loss on sale of investments | (1178765) |
| Net unrealized loss on investments | (4060250) |
| **Balance, September 30, 2023** | $**6464119** |
| Proceeds from sales | (5112294) |
| Realized loss on sale of investments <sup>(1)</sup> | (1371696) |
| Net unrealized gain on investments | 2544198 |
| **Balance, June 30, 2024** | $**2524327** |

---

(1) The realized loss on sale of investments of $1,371,696 excludes the recovery of $270,661 from the sale of the Claims and brokerage fees of $66,280 related to the sale of the Company's Animoca share, which have been included in the Realized (loss) on investments in the Interim Condensed Consolidated Statements of Comprehensive Income for the nine months ended June 30, 2024.

**8. OTHER ASSETS**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **June 30,**<br>**2024** | September 30,<br>2023 |
| Cryptocurrency mining assets (a) | $**36418** | $60145 |
|  | $**36418** | $60145 |

---

(a) Cryptocurrency mining assets of $36,418 (September 30, 2023 - $60,145) represent the acquisition cost of 25 Bitmain S19J Pro miners (the "Equipment") purchased by the Company during the year ended September 30, 2022 for cash consideration of $376,819, net of accumulated amortization and other adjustments. The Equipment is leased to MineOn LLC, which hosts and operates the machines in Iowa, USA for Cypherpunk pursuant to a managed mining and profit sharing agreement. During the year ended September 30, 2022 the Company determined that the value of the Equipment had declined and an impairment charge of $215,802 was recorded at year end. The Equipment is amortized on a straight line basis from the date of acquisition over its estimated economic useful life of 5 years. During the nine-months ended June 30, 2024 the Company recognized amortization expense of $23,727 (2023 - $47,971) for total accumulated amortization of $121,762 (2023 - $90,126).

**9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **June 30,**<br>**2024** | September 30,<br>2023 |
| Trade accounts payable | $**243337** | $107025 |
| Funds held for option exercise | **150000** |  |
| Accrued liabilities | **84000** | 119451 |
|  | $**477337** | $226476 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**10. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2022** | **160070718** | $**18572547** |
| Purchase of shares for cancellation | (8003535) | (707765) |
| **Balance at September 30, 2023** | **152067183** | $**17864782** |
| Purchase of shares for cancellation | (7603343) | (938924) |
| Exercise of options | 209625 | 40563 |
| **Balance at June 30, 2024** | **144673465** | $**16966421** |

---

Pursuant to the terms of a normal course issuer bid, during the nine months ended June 30, 2024, the Company purchased and cancelled 7,603,343 shares (2023 - 2,960,000).

During the year ended September 30, 2023, pursuant to the terms of a normal course issuer bid, the Company purchased and cancelled 8,003,535 shares.

**11. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period, and the board of directors may specify a vesting period on a grant by grant basis. As at June 30, 2024, the maximum number of shares issuable pursuant to the Plan was 14,467,347, of which 11,617,375 shares had been granted, leaving 2,849,972 shares available for issue.

On November 21, 2022, the Company issued 3,956,500 options for future services to a director and an officer to buy common shares at an exercise price of $0.10 per common share and expiring on November 21, 2027. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on November 21, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.10, dividend yield 0%, expected volatility based on historical volatility of 161.6%, a risk free interest rate of 3.32%, and an expected life of 5 years. The fair value of the options was estimated at $369,925 on that grant date. During the nine months ended June 30, 2024, 279,500 options were cancelled and 209,625 were exercised. As a result, $81,364 (2022 - $42,305) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

On November 11, 2021, the Company issued 2,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.24 per common share and expiring on November 11, 2026. The stock options vested 25% on each six month anniversary of the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.24, dividend yield 0%, expected volatility based on historical volatility of 207.72%, a risk free interest rate of 1.56%, and an expected life of 5 years. The fair value of the options was estimated at $470,600 on the grant date. During the year ended September 30, 2023, 2,000,000 options were cancelled. As a result, $nil (2022 - $nil) was recognized in the Interim Statements, representing the pro rata value of remaining options that had vested during the period.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

The continuity of outstanding stock options for the nine months ended June 30, 2024 and the year ended September 30, 2023 is as follows, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**June 30,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **13106500** | $**0.18** | 14050000 | $0.18 |
| Cancelled | **(1279500)** | $**0.00** | (4000000) | ($0.18) |
| Exercised | **(209625)** | $**0.10** |  | $0.00 |
| Granted | **-** | $**0.10** | 3956500 | $0.23 |
| Expired | **-** | $**0.00** | (900000) | $0.00 |
| **Ending balance - outstanding** | **11617375** | $**0.16** | 13106500 | $0.18 |

---

The detail of outstanding options at June 30, 2024 and September 30, 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Expiry Date** | **June 30,**<br>**2024** | <br>**Exercisable** | **Exercise**<br>**Price** | **September 30,**<br>**2023** | <br>**Exercisable** | **Exercise**<br>**Price** |
| August 28, 2025 | **600000** | **600000** | $**0.10** | 600000 | 600000 | $0.10 |
| December 1, 2025 | **250000** | **250000** | $**0.12** | 250000 | 250000 | $0.12 |
| April 9, 2026 | **1500000** | **1500000** | $**0.30** | 1500000 | 1000000 | $0.30 |
| July 7, 2026 | **4800000** | **4800000** | $**0.17** | 5800000 | 3650000 | $0.17 |
| October 7, 2026 | **1000000** | **1000000** | $**0.20** | 1000000 | 500000 | $0.20 |
| November 21, 2027 | **3467375** | **2548125** | $**0.10** | 3956500 | 989125 | $0.10 |
| **Ending balance - outstanding** | **11617375** | **10698125** |  | **13106500** | **6989125** |  |

---

At June 30, 2024, 10,698,125 options were exercisable at a weighted average price of $0.17 per share (September 30, 2023 - 6,989,125 at $0.17). The weighted average life of the outstanding options is 1.35 years (September 30, 2023 - 1.9 years).

**12. WARRANTS**

In connection with a private placement completed on March 24, 2021, the Company issued 14,705,883 warrants exercisable within 36 months at a price of $0.395 per share. The warrants were assigned a fair value of $2,443,637 using the Black-Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk- free interest rate of 0.49% and an expected life of 3 years.

In connection with the private placement completed on March 24, 2021, the Company issued 2,058,824 broker warrants exercisable within 36 months at a price of $0.425 per share. The warrants were assigned a fair value of $455,542 using the Black-Scholes option pricing model with the following assumptions: share price $0.285, dividend yield 0%, expected volatility, based on historical volatility 152.75%, a risk-free interest rate of 0.49% and an expected life of 3 years.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

The continuity of outstanding warrants the nine months ended June 30, 2024 and the year ended September 30, 2023, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**June 30,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **16764707** | $**0.40** | 26698442 | $0.33 |
| Expired | **(16764707)** | **-$0.40** | (9933735) | $0.10 |
| **Ending balance** | **-** | $**0.00** | 16764707 | $0.40 |

---

The detail of outstanding warrants at June 30, 2024 and the year ended September 30, 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,** | September 30, | Exercise |
| **Expiry Date** | **2024** | 2023 | Price |
| March 24, 2024 | **-** | 14705883 | $0.395 |
| March 24, 2024 | **-** | 2058824 | $0.425 |
|  | **-** | 16764707 |  |

---

The weighted average life of the outstanding warrants as at June 30, 2024 is nil years (September 30, 2023 - 0.48 years).

**13. RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the nine months ended June 30, 2024, the Company paid $20,513 (2023 - $nil) for consulting services provided by a director and officer of the Company. At June 30, 2024, there is $20,513 (2023 - $nil) of accounts payable to this related party.

During the nine months ended June 30, 2024, the Company paid $62,641 (2023 - $54,000) for consulting services provided by a director and officer of the Company. At June 30, 2024, there is $2,641 (2023 - $nil) of accounts payable to this related party.

During the nine months ended June 30, 2024, the Company paid $67,500.00 (2023 - $55,558) for consulting services provided by an officer of the Company. At June 30, 2024 there is $nil (2023 - $nil) of accounts payable to this related party.

During the nine months ended June 30, 2024, the Company paid $90,000 (2023 - $90,000) for consulting services provided by an officer of the Company. At June 30, 2024, there is $180,000 (2023 - $30,000) of accounts payable to this related party, including $150,000 of funds held pursuant to an option exercise.

During the nine months ended June 30, 2024, the Company paid $54,000 (2023 - $54,000) for consulting services provided by a director and officer of the Company. At June 30, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the nine months ended June 30, 2024, the Company paid $nil (2023 - $5,000) for consulting services provided by a director of the Company. At June 30, 2024, there is $nil of accounts payable to this related party (2023 - $5,650).

During the nine months ended June 30, 2024, $20,741 (2023 - $59,244) was charged for legal services by a firm of which an officer of the Company is a partner. At June 30, 2024, there is $6,560 of accounts payable to this related party (2023 - $845).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

---

| | | |
|:---|:---|:---|
| The compensation payable to current and former key management is shown below: |  |  |
| Nine months ended June 30, | **2024** | **2023** |
| Consulting fees | $**294654** | $167000 |
| Director fees | **25000** | 30000 |
| Stock-based compensation | **81834** | 297988 |
|  | $**401488** | $494988 |

---

At June 30, 2024, included in accounts payable and accrued liabilities is $59,714 (2023 - $845) owed to related parties.

**14. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017 the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary KRBV for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority has again issued a preliminary assessment, and the Company has filed a notice of objection to this assessment. Management believes that this issue will be resolved when the Netherlands tax authority has completed a review of all the facts. As a result, no provision has been made for this reassessment in these Interim Statements.

Disputed Claim for Unpaid Services - During the year ending September 30, 2021, the Company received a claim for unpaid services of 83,731 euros (the "Claim") from a Netherlands based company that had been engaged to provide administrative services to KRBV (the "Engagement"). The Engagement was terminated by the Company on July 29, 2020. The Company has accrued 50,000 euros ($73,980) for the Claim in these Interim Statements. The Company has not received any new information regarding the Claim in during the nine months ended June 30, 2024 and believes that the lawsuit is unlikely to result in any liability to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**15. FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - June 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $2082575 | $441752 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 16507308 |  |
|  | $**-** | $**18589883** | $**441752** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the nine months ended June 30, 2024 and the year ended September 30, 2023.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | June 30, | September 30, | June 30, | June 30, |
|  | 2024 | 2023 | 2024 | 2024 |
| Investments | $441752 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at June 30, 2024 and noted that a 20% decrease would result in a $88,350 decrease in fair value.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**16. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the nine months ended June 30, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at June 30, 2024, the Company holds $8,550,548 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**CYPHERPUNK HOLDINGS INC.**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Nine months ended June 30, 2024 and 2023**

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at June 30, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $252,433 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of June 30, 2024 is $8,271,667 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $827,168 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at June 30, 2024, the Company had cash and cash equivalents balance of $8,550,311 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $477,337 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**17. INCOME TAX**

As at September 30, 2023, the Company recognized a deferred tax asset of $nil (2022 - $201,518) in respect of Canadian non-capital loss carry forwards, leaving approximately $1,285,482 expiring between 2037 and 2040, and a net deferred tax asset of $633,145. The net deferred tax assets which originated during the year ended September 30, 2023 have also not been recognized in the Interim Statements.

**18. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**19. SUBSEQUENT EVENTS**

On July 3, 2024, the Company granted 3,000,000 options to acquire common shares of the Company at an exercise price of $0.115.

On July 3, 2024, the Company cancelled 6,900,000 options to acquire common shares of the Company.

On July 8, 2024, the Company granted 2,000,000 options to acquire common shares at an exercise price of $0.115.

On August 6, 2024, the Company granted 6,900,000 options to acquire common shares at an exercise price of $0.155.

Subsequent to June 30, 2024 to the date hereof the Company has acquired 67,130 SOL for a total cost of US$9,806,010 ($13,332,251).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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## Exhibit 99.24

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![](exhibit99-24x001.jpg)

**MANAGEMENT DISCUSSION AND ANALYSIS**

For the nine months ended June 30, 2024 and 2023

As at August 29, 2024

This Management Discussion and Analysis ("MD&A") has been approved in accordance with a resolution of the Board of Directors of Cypherpunk Holdings Inc. ("Cypherpunk" or, the "Company") dated August 29, 2024. It should be read in conjunction with the unaudited interim condensed consolidated financial statements of the Company as at and for the nine month period ended June 30, 2024 and 2023 (the "Interim Statements").

**ABOUT CYPHERPUNK HOLDINGS INC.**

Cypherpunk is a publicly traded company that is listed on the Canadian Securities Exchange (CSE) under the ticker HODL.

The Company is an actively managed crypto investment company. The Company's objective is based on its objective to invest in crypto companies that drive technological innovation, demonstrate market leadership, achieve real-world adoption, navigate regulatory environments effectively, and form strategic partnerships for sustained growth (the "Investment Objective").

Cypherpunk executes its Investment Objective through three lines of effort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Treasury management - - Maintaining a core portfolio of cryptocurrencies for long-term growth, enhanced with risk management strategies to minimize volatility, and generating yield through lending, staking, and liquidity provisioning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Private equity focused on early stage companies in the DeFi and blockchain sectors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Active investments to generate yield through strategic activities, including Bitcoin mining.

As at June 30, 2024, the Company had total assets of $28.4 million and net book value of $27.9 million.

**SIGNIFICANT EVENTS IN THE NINE MONTH PERIOD ENDED JUNE 30, 2024**

**Overview**

- Total assets increased $11.3 million from year end to $28.4 million

- Net book value increased $11.1 million to $27.9 million

- Resumption of the European call option treasury management strategy

- Pursuant to the terms of a normal course issuer bid, during the nine months ended June 30, 2024, the Company purchased and cancelled 7,603,343 shares.

**Treasury Management and Diversified Yield Generation**

*Treasury Management -* The Company resumed its treasury management strategy during the quarter, selling European call options that generated 7.3293 Bitcoin in premiums.

*Cryptocurrencies* - At June 30, 2024, the Company had 117.15 Bitcoin (September 30, 2023 - 215.37 Bitcoin) with a cost base of $4.5 million. The decrease in Bitcoin since September 30, 2024 is due to the sale of Bitcoin to fund the purchase of Solana and to support treasury management operations offset by Bitcoin income from mining operations, dividends and premium income from treasury management operations.

**Private Equity and Venture Capital**

*Highlights*

- Total investments of $2.5 million, a decrease of $4 million from $6.5 million at September 30, 2023.

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Cypherpunk Holdings Inc. <br>  

- Sale of 6.2 million Animoca Brands Corporation Limited ("Animoca") shares at a price of AUD $0.92 per share ($0.82 CAD) for gross proceeds of AUD $5.7 million ($5.1 million CAD).

- $1,167,314 realized loss on investments recognized during the nine months ended June 30, 2024 (2023 - $1,178,765), representing a loss of approximately $1,437,946, on the sale of approximately 6.2 million Animoca shares, which includes brokerage costs of $66,280, offset by a gain of $270,661 from the Company's pro rata share of the proceeds realized by Isla Capital Ltd. ("Isla") from the sale of its right to FTX Trading Ltd. ("FTX") bankruptcy claims (the "Claims").

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail as at June 30, 2024 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **June 30,**<br>**2024** | <br>Quantity | September 30,<br>2023 |
| Animoca Brands Corporation Limited (a) | **2856630** | $**2082575** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **358953** | 19860 | 366932 |
| NGRAVE.IO (c) | **138966** | **82799** | 138966 | 80976 |
| Lucy Labs Flagship Offshore Fund SPC (d) | **500** | **-** | 500 |  |
| Streetside Development, LLC (e) | **1429** | **-** | 1429 | 122646 |
| zkSNACKS Limited - Shares (f) | **4500** | **-** | 4500 | 772668 |
|  |  | $**2524327** |  | $6464119 |

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(a) During the year ended September 30, 2023, the Company purchased 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a cost of AUD $1.10 ($1.04 CAD) per share for a total cost of AUD $10,000,000 ($9,434,917 CAD). During the nine months ended June 30, 2024, the Company sold 6,233,370 Animoca shares at an average price of AUD $0.92 per share ($0.82 CAD) for gross proceeds of AUD $5,732,910 ($5,112,294 CAD). At June 30, 2024, the Company determined the fair value of its remaining 2,856,630 Animoca shares to be $2,082,575.

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. Based on a review of the financial status of Chia as at September 30, 2023, management estimated Chia's fair market value per share to be $17.98 (US$13.30), the Company wrote its investment Chia down by $2,558 (2022 - $188,231) to a value of $366,932 (2022 - 369,490) in the consolidated statements of comprehensive income. The Company determined the fair value of its Chia shares was $358,953 as at June 30, 2024.

(c) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. Based on an independent valuation of NGRAVE dated September 30, 2023, that estimated the fair value of NGRAVE to be C$80,976 (2022 - $148,419) as at September 30, 2023, the Company recognized an unrealized loss of $67,443 (2022 - $107,692) on its NGRAVE investment in the consolidated statements of comprehensive income. The Company determined the fair value of its NGRAVE shares was $82,799 as at June 30, 2024.

(d) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). As at September 30, 2022, the Company determined that the fair value of Lucy Labs was $707,649, recognizing an unrealized gain of $71,574 in the consolidated statements of comprehensive income. On November 11, 2022, FTX filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023.

(e) Based on an independent valuation of Streetside Development, LLC dated September 30, 2023 that estimated the fair value of Streetside to be $122,646 (2022 - $126,516) as at September 30, 2023, the Company recognized an unrealized loss of $3,870 (2022 - $nil) on its Streetside investment in the consolidated statements of comprehensive income. The Company determined the fair value of its Streetside shares was $nil as at June 30, 2024 recognizing an unrealized loss of $122,646 in the Interim Statements (2022 - $nil).

(f) Based on an independent valuation of zkSNACKS Limited dated September 30, 2023 that estimated the fair value of zkSNACKS to be $772,668 (2022 - $445,028) as at September 30, 2023, the Company recognized an unrealized gain of $327,641 (2022 - $nil) on its zkSNACKS investment in the consolidated statements of comprehensive income. During the nine months ended June 30, 2024, the Company received dividend income of approximately 2.0 bitcoin (2023 - 0.99 bitcoin). The Company determined the fair value of its Streetside shares was $nil as at June 30, 2024 recognizing an unrealized loss of $772,668 in the Interim Statements (2022 - $nil).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the nine months ended June 30, 2024.

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Cypherpunk Holdings Inc. <br>  

**Other Assets**

Other assets declined $23,727 to $36,418 at June 30, 2024 (September 30, 2023 - $60,145), due to the amortization of the Company's cryptocurrency mining assets.

**Subsequent Events**

On July 3, 2024, the Company granted 3,000,000 options to acquire common shares of the Company at an exercise price of $0.115.

On July 3, 2024, the Company cancelled 6,900,000 options to acquire common shares of the Company.

On July 8, 2024, the Company granted 2,000,000 options to acquire common shares at an exercise price of $0.115.

On August 6, 2024, the Company granted 6,900,000 options to acquire common shares at an exercise price of $0.155.

Subsequent to June 30, 2024 to the date hereof the Company has acquired 67,130 SOL for a total cost of US$9,806,010 ($13,332,251).

**OVERALL PERFORMANCE**

**Overview**

- Cash position of $8.5 million (September 30, 2023 - $1.9 million)

- Cryptocurrency holdings of $16.5 million (September 30, 2023 - $7.9 million) reflecting:

o An unrealized gain of $6.0 million (2023 - $63,105), recognized in other comprehensive income

o Other income of $182,341

o Dividend income of $248,411

o Cash sales of cryptocurrencies of $8.8 million, resulting in a gain of $4.8 million, recognized in other comprehensive income

- Total assets of $28.4 million (September 30, 2023 - $17.1 million)

- Net book value of $27.9 million (September 30, 2023 - $16.8 million)

**SELECTED ANNUAL INFORMATION**

Selected audited annual information for the three most recently completed years, all reported under IFRS, are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2023** | **2022** | **2021** |
| Total assets | $17054245 | $23892055 | $31230861 |
| Shareholders' equity | 16827769 | 23583763 | 27841541 |
| Income | (4498715) | 3131499 | 406819 |
| Net income | (6282328) | 358456 | (1174497) |
| EPS | $(0.04) | $0.00 | $(0.01) |
| Comprehensive income | (6479174) | (5612877) | 7419378 |

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**Results of Operations**

*Comparison of the years ended September 30, 2023 and 2022*

The total comprehensive loss for the year ended September 30, 2023 ("Fiscal 2023") increased $866,297 to a loss of $6,479,174 compared to total comprehensive loss of $5,612,877 for the year ended September 30, 2022 ("Fiscal 2022"). The main reasons for the variance are as follows:

- Unrealized loss on investments of $4,060,250 during Fiscal 2023 (2022 - $1,325,836), mainly due to an unrealized loss on Animoca of $4,314,020 in Fiscal 2023. In Fiscal 2022 the unrealized loss was mainly due to losses in the Company's GOAT, Animoca and Ngrave investments totaling $1,325,836.

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Cypherpunk Holdings Inc. <br>  

- During Fiscal 2023 the Company realized a loss on investments of $1,178,765 (2022 - a realized gain of $3,758,852) due to realized losses on ISLA and Lucy Labs during Fiscal 2023. In Fiscal 2022 the realized gain on investments was mainly due to the sale of its Animoca investment of $4,212,365 offset by realized losses on its 168, Panxora and 66 investments.

- The Company realized on gain on disposition of IPv4 assets during Fiscal 2023 of $536,633 (2022 - $nil).

- Operating expenses in Fiscal 2023 were $1,810,557 (2022 - $2,338,302), the decrease in operating losses was mainly due to:

o Stock-based compensation in Fiscal 2023 of $430,945 (2022 - $1,345,099).

o Consulting fees of $424,735 (2022 - $625,990).

o Foreign exchange loss in Fiscal 2023 of $346,669 (2022 - gain of $715,354).

o Amortization expense of $70,885 (2022 - $255,548).

o Asset impairment in Fiscal 2023 of $nil (2022 - $215,802).

- For Fiscal 2023 the loss from items that will not be reclassified to profit and loss of $196,846 (2022 - $5,971,333).

**SELECTED QUARTERLY INFORMATION**

The below selected quarterly information summarizes the financial information for the last eight quarters.

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| |
|:---|
| Income (loss) before taxes |
| Tax Recovery) |
| Income (loss) for period |
| Net income (loss) per share (basic and diluted) |
| Total comprehensive income (loss) |
| Total assets |
| Net book value |

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**Results of Operations**

*Comparison of the three months ended June 30, 2024 and 2023*

The total comprehensive income for the three months ended June 30, 2024 ("Q3-24") increased $5.0 million to $4.9 million (2023 - total comprehensive loss of $1.6 million). The main reasons for the increase are as follows:

- In Q3-24 there was other comprehensive income of $6.5 million (2023 - $0.49 million), mainly due to unrealized gains in the Company's Bitcoin holdings of $1.7 million and realized gains on the sale of 102.21 Bitcoin of approximately $4.8 million during Q3-24.

- In Q3-24 there was a realized loss on investments of $1.4 million (2023 - $nil) mainly due to the sale of 3.7 million Animoca shares.

- Divided income increased $237,082 to $245,798, mainly due to approximately 2.0 of Bitcoin dividends paid by zkSNACKS

- In Q2-24 operating expenses increased $20,235 to $372,147, mainly due to the following:

o A $70,059 decrease in stock based compensation to $43,758

o A $169,368 decrease in foreign exchange loss to a foreign exchange gain of $119,636

o A $101,636 increase in consulting fees to $203,877

o A $79,236 increase in professional fees to $101,856

o A $71,227 increase in general and administrative fees

*Comparison of the nine months ended June 30, 2024 and 2023*

The total comprehensive income for the nine months ended June 30, 2024 increased $14.9 million to $11.9 million (2023 - total comprehensive loss of $3.0 million). The main reasons for the increase are as follows:

- During the nine months ended June 30, 2024, there was other comprehensive income of $10.7 million (2023 - $0.56 million), mainly due to unrealized gains in the Company's Bitcoin holdings of $6.0 million and realized gains on the sale of approximately 102.4 Bitcoin of approximately $4.8 million

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Cypherpunk Holdings Inc. <br>  

- During the nine months ended June 30, 2024, there was an unrealized gain on investments of $2.5 million (2023 - unrealized loss of $1.5 million) mainly due to the appreciation of Animoca shares during the nine months ended June 30, 2024 relative to their market value at September 30, 2023.

- During the nine months ended June 30, 2024, divided income increased $2222,055 to $248,411, mainly due to 2.0 of Bitcoin dividends paid by zkSNACKS

- Realized gain on the disposition of assets of $nil during the nine months ended June 30, 2024 (2023 - $536,633)

- During the nine months ended June 30, 2024, operating expenses decreased $965,074 to $662,880, mainly due to the following:

o A $329,971 decrease in stock based compensation to $81,834

o A $466,673 decrease in foreign exchange loss to a foreign exchange gain of $75,419

o A $102,746 decrease in professional fees to $146,322

**FINANCIAL AND CAPITAL MANAGEMENT**

---

| | |
|:---|:---|
| **Outstanding Share Data** |  |
| **At June 30, 2024** |  |
| Common shares outstanding: | 144673465 |
| Options to purchase common shares: | 11617375 |
| Warrants: | nil |
| **At August 29, 2024** |  |
| Common shares outstanding: | 146173465 |
| Options to purchase common shares: | 14467375 |
| Warrants: | nil |

---

**Cash Flow**

For the nine months ended June 30, 2024, cash and cash equivalents increased $6.6 million (2023 - decrease of $16.4 million) due to $261,648 of net cash used in operating activities (2023 - $956,527), $917,961 of net cash used in financing activities (2023 - $707,765), and $7.8 million of net cash provided by investing activities (2023 - $14.8 used in investing activities).

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - June 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $2082575 | $441752 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 16507308 |  |
|  | $**-** | $**18589883** | $**441752** |

---

------

Cypherpunk Holdings Inc. <br>  

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the nine months ended June 30, 2024 and the year ended September 30, 2023.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Unobservable** |  |
| **Description** | **Fair Value** | **Fair Value** | **Inputs** | **Range of inputs** |
|  | June 30, | September 30, | June 30, | June 30, |
|  | 2024 | 2023 | 2024 | 2024 |
| Investments | $441752 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

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Cypherpunk Holdings Inc. <br>  

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at June 30, 2024 and noted that a 20% decrease would result in a $88,350 decrease in fair value.

**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there is sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the nine months ended June 30, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

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Cypherpunk Holdings Inc. <br>  

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at June 30, 2024, the Company holds $8,550,548 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

------

Cypherpunk Holdings Inc. <br>  

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that possess both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at June 30, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $252,433 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of June 30, 2024 is $8,271,667 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $827,168 (September 30, 2023 - $166,962).

------

Cypherpunk Holdings Inc. <br>  

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at June 30, 2024, the Company had cash and cash equivalents balance of $8,550,311 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $477,337 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Accounting Policies**

This MD&A should be read in conjunction with the Company's Interim Statements. For additional information on the Company's significant accounting policies, methods and critical accounting estimates and judgments used in preparation of the Company's 2022 consolidated financial statements and notes, please refer to Note 2 of the audited consolidated financial statements as at September 30, 2022. The Interim Statements are presented on a going concern basis. The preparation of financial statements in compliance with IFRS requires the Company's management to make certain estimates and assumptions that they consider reasonable and realistic. Despite regular reviews of these estimates and assumptions, based in particular on past achievements or anticipations, facts and circumstances may lead to changes in these estimates and assumptions which could impact the reported amount of the Company's assets, liabilities, income, and expenses. Actual results may differ from those estimates.

**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements.

**Transactions with Related Parties**

See note 13 of the Interim Statements.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**Other Information**

This discussion and analysis of the financial position and results of operation as at August 29, 2024, should be read in conjunction with the unaudited interim condensed consolidated financial statements for the three and nine months ended June 30, 2024 and the consolidated financial statements for the year ended September 30, 2023 and 2022. Additional information can be accessed through the Company's public filings at <u>www.sedar.com</u>.

**Management's Responsibility for Financial Information**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**Management's Report on Internal Control over Financial Reporting**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

------

Cypherpunk Holdings Inc. <br>  

*"Leah Wald"*

Chief Executive Officer

August 29, 2024

**Forward-Looking Statements**

*Certain statements included or incorporated by reference in this MD&A, including information as to the future financial or operating performance of the Company, its subsidiaries, and its projects, constitute forward-looking statements. The words "believe", "expect" , "anticipate" , "contemplate" , "target" , "plan", "intends", "continue", "budget", "estimate", "may", "schedule" and similar expressions identify forward-looking statements. This MD&A includes, but is not limited to, forward-looking statements regarding: the Company's ability to meet its working capital needs for the twelve-months ending June 30, 2024 and statements regarding the Company's critical accounting estimates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social uncertainties, and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to additional funding requirements, political and foreign risk, uninsurable risks, competition, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs and dependence on key employees. See "Risk and Uncertainties" section of this MD&A. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this MD&A and the Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events, or results or otherwise.*

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## Exhibit 99.25

------

**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Douglas Harris, Chief Financial Officer of Cypherpunk Holdings Inc.,** certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **June 30, 2024**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

<br>Date: August 29, 2024.

*Signed "Douglas Harris"*

*______________________________________*

Douglas Harris

Chief Financial Officer

&nbsp;&nbsp;&nbsp; **NOTE TO READER**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.26

------

**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Leah Wald, Chief Executive Officer of Cypherpunk Holdings Inc.,** certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Cypherpunk Holdings Inc.** (the "issuer") for the interim period ended **June 30, 2024**.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.<br>

Date: August 29, 2024.

*Signed "Leah Wald"<br>______________________________________*

<br> Leah Wald

Chief Executive Officer

&nbsp;&nbsp;&nbsp; **NOTE TO READER**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.27

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**Cypherpunk Announces Name Change to Sol Strategies Inc.**

TORONTO, September 9, 2024 - Cypherpunk Holdings Inc. (CSE: HODL) (OTC Pink: CYFRF) ("**Cypherpunk**" or the "**Company**"), is pleased to announce it will be changing its name to "Sol Strategies Inc.". The Company's stock symbol on the Canadian Securities Exchange will remain as "HODL", and the Company expects its shares will commence trading under the new name on market opening on or about Thursday, September 12, 2024. A new CUSIP number has been obtained to replace the previous CUSIP number.

No action will be required by existing shareholders with respect to the name change. Certificates representing common shares of the Company will not be affected by the name change and will not need to be exchanged. The Company encourages any shareholder with questions or concerns to contact the Company or to discuss any of the foregoing with their broker or agent.

**About Cypherpunk Holdings Inc.**

Cypherpunk Holdings is dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information**

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking information includes, but is not limited to the Company's expectation or belief regarding its investment in shares of Animoca Brand and Animoca Brand's future performance or business. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

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Officer/Director Contact:

Doug Harris

Chief Financial Officer <br>doug@cypherpunkholdings.com <br>Tel: 416-480-2488

SOURCE: Cypherpunk Holdings Inc.

Media contact: cypherpunk@mgroupsc.com

------

## Exhibit 99.28

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**Cypherpunk Holdings Appoints Ungad Chadda to Board of Directors**

**TORONTO, ONTARIO, September 10, 2024** - Cypherpunk Holdings Inc. (CSE: HODL, OTC: CYFRF) (the "Company"), a Canadian-based company dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem, today announced the appointment of Ungad Chadda as an additional independent director, joining the Company's Board of Directors effective immediately.

Mr. Chadda is a seasoned capital markets regulator and financial services executive, having held various senior positions at TMX Group Limited, the parent company of the Toronto Stock Exchange. During Mr. Chadda's tenure of over 21 years at TMX Group, he held progressively senior roles, including Director of Listings, TSX Venture Exchange; Chief Operating Officer, TSX Venture Exchange; Vice President, Business Development, Toronto Stock Exchange and TSX Venture Exchange; President, Toronto Stock Exchange; CFO of TSX Trust (formerly Equity Transfer and Trust) an OSFI regulated entity; and SVP, Head of Enterprise Corporate Strategy and External Affairs, TMX Group. Currently, Mr. Chadda serves as the CEO and Director of Urban Infrastructure Group Inc., a TSX Venture Exchange-listed company in the construction industry.

Mr. Chadda holds an Honours Bachelor of Commerce from McMaster University, obtained his Chartered Accountancy designation with Ernst & Young LLP in 1996, and completed the Director Education Course at the Rotman School of Management in 2019 as valedictorian.

Leah Wald, CEO of the Company, commented: "We are pleased to welcome Ungad Chadda to our Board of Directors. His addition complements the existing skills of our Board, and we are confident that his regulatory and leadership experience working in the capital markets will help lead the Company forward in executing new and creative strategies in the blockchain and digital asset sectors. Ungad's appointment reinforces our commitment to enhancing our governance and ensuring that the Company remains at the forefront of the digital asset ecosystem."

**About Cypherpunk Holdings Inc.**

The Company is dedicated to investing in companies, cryptocurrencies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

*This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

<br> ------

*Forward-looking statements made in this news release include, but are not limited to, statements regarding the appointment of a new director to the Company's Board of Directors and associated benefits, and the Company's plans to execute its strategies and goals. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.*

*There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@cypherpunkholdings.com <br>Tel: 416-480-2488

**SOURCE:** Cypherpunk Holdings Inc.

**Media contact:** <u>cypherpunk@mgroupsc.com</u>

------

## Exhibit 99.29

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**Cypherpunk Holdings Announces Consulting Agreement and Issuance of Stock Options**

**TORONTO, ONTARIO, September 11, 2024** - Cypherpunk Holdings Inc. (CSE: HODL, OTC: CYFRF) ("Cypherpunk" or the "Company"), a Canadian-based company dedicated to investing in companies, technologies, and protocols within the blockchain ecosystem, announces it has that it has entered into an investor relations agreement (the "**Agreement**") dated September 11, 2024 with Proconsul Capital Ltd. ("**Proconsul**"), an arm's length party to the Company. Pursuant to the Agreement, Proconsul has agreed to provide strategic communication services to the Company, in consideration for a fee of $7,000, plus HST per month during the Term of the Agreement and the issuance of stock options in the Company (the "**Consultant Options**"). The Agreement is in effect until October 30, 2024, and renewable automatically on a month-to-month basis unless terminated by either party in accordance with the termination provisions contained in the Agreement (the "**Term**"). Proconsul's business address is 100 Richmond St. W. Suite 200, Toronto, ON M5H 3K6 email: acurkovic@proconsulcapital.com, telephone: 416-577-9927. Proconsul currently owns nil securities of the Company.

The Consultant Options are exercisable to purchase 100,000 common shares (each, a "**Common Share**") in the capital of the Company at a price of $0.145 per Common Share, until the earlier of September 11, 2026, and thirty (30) days after the termination of the Agreement. The Consultant Options vest after three months and prior to the expiry of the stock option agreement. The Options were granted pursuant to the Company's stock option plan last approved by shareholders at the annual and special meeting of shareholders on July 30, 2024.

The Company has also granted stock options (the "**Options**") to purchase 49,971 Common Shares in the capital of the Company to Ungad Chadda in connection with his previously announced appointment as a director of the Company at a price of $0.145 per Common Share, expiring on September 10, 2029. The Options vest immediately. The Options were granted pursuant to the Company's stock option plan last approved by shareholders at the annual and special meeting of shareholders on July 30, 2024.

**About Cypherpunk**

Cypherpunk is dedicated to investing in companies, cryptocurrencies, technologies, and protocols within the blockchain ecosystem. With a strategic focus on cryptocurrency and blockchain innovation, the Company leverages its extensive industry expertise to identify and support high-potential opportunities in the digital asset space.

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

*This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

<br> ------

*Forward-looking statements made in this news release include, but are not limited to, statements regarding the appointment of a new director to the Company's Board of Directors and associated benefits, and the Company's plans to execute its strategies and goals. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.*

*There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@cypherpunkholdings.com <br>Tel: 416-480-2488

**SOURCE:** Cypherpunk

**Media contact:** <u>cypherpunk@mgroupsc.com</u>

------

## Exhibit 99.30

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![](exhibit99-30x001.jpg)

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![](exhibit99-30x002.jpg)

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![](exhibit99-30x003.jpg)

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![](exhibit99-30x004.jpg)

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## Exhibit 99.31

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**Cypherpunk Holdings Inc. Rebrands to Sol Strategies, Signifying Strategy Shift to Solana**

**TORONTO - September 12, 2024 -** Sol Strategies Inc., formerly Cypherpunk Holdings Inc. (CSE: HODL) (OTC: CYFRF) ("**Sol Strategies**" or the "**Company**"), a Canadian company focused on blockchain investments, today announced its rebrand to "Sol Strategies" to reflect its new investment strategy centered on Solana. This shift includes staking Solana and investing in the protocol's projects and infrastructure. The Company's legal name change from "Cypherpunk Holdings Inc." to "Sol Strategies Inc." took effect on September 12, 2024, and was unanimously approved by the Company's board of directors and by its shareholders at the Company's shareholder meeting held on July 30, 2024. Sol Strategies will continue to be traded under the ticker symbol HODL on the Canadian Securities Exchange (CSE) and CYFRF on the OTC market.

"With the Company rebranding to Sol Strategies, we are positioned to capitalize on the growth potential within the Solana ecosystem" said Leah Wald, CEO of Sol Strategies. She added: "Just as the Company was one of the first publicly traded investment vehicles investing its treasury assets in Bitcoin, the Company's shareholders can gain similar indirect exposure to the Company's holdings and staking of Solana and any future investments that it may make in Solana-based projects and infrastructure. Transitioning to Sol Strategies signifies our strategic evolution for the Company as we focus on unlocking Solana for public markets and driving value for our shareholders."

The Company's blockchain and cryptocurrency related business emerged in 2018, focused on venture capital, private equity and Bitcoin investments at a time when no crypto-asset ETFs existed. It was one of the first publicly traded companies in Canada to hold significant Bitcoin as a treasury asset. As the digital asset market continues to rapidly evolve and mature, so has the Company. The Company's rebranding reflects the Company's evolution and maturity.

Now branded as Sol Strategies, the Company is focused on operating its own validator node on Solana through a third-party service provider and making strategic investments in Solana-based projects and infrastructure. This shift provides the Company's investors with an opportunity to benefit any future growth of the Company related to its investments and participation in the Solana ecosystem, blockchain and cryptocurrency sector, without the complexities of directly purchasing and managing cryptocurrency assets. With this direction, Sol Strategies is seeking to take a leading role in connecting public markets to decentralized finance.

For more information and to see the Company's current staking progress, as outlined in the August 1st corporate update, please visit Sol Strategies' new website at <u>Solstrategies.io.</u>

**About Sol Strategies**

Sol Strategies is a publicly traded company committed to the continued development of the blockchain and cryptocurrency ecosystem through its activities in the private equity and financial markets and its support for related technology innovation. Through its investments, the Company offers its shareholders exposure to Solana through its direct investing and staking activities. By staking Solana and investing in Solana- based projects and infrastructure, the Company seeks to benefit from the potential growth of Solana and its other investments to drive value for its shareholders, including those seeking to avoid the complexities of managing cryptocurrency assets directly. Sol Strategies' mission is to lead the Solana ecosystem by generating a strong revenue stream through staking rewards and investing in emerging, high-potential Solana-based projects and infrastructure. To learn more about taking a stake in Sol Strategies' future, please visit our website at www. <u>Solstrategies.io.</u> A copy of this news release and all material documents in respect of the Company may be obtained under the Company's SEDAR+ profile at www.sedar+.com.

------

**Cautionary Note Regarding Forward-Looking Information:**

*Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.*

*This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".*

*Forward looking statements in this news release include statements regarding the company's future investing plans and strategies, the potential success of its brand, the growth of Solana and other investments. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward- looking information.*

*There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.*

**Disclaimer:**

*Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.*

------

*None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with the respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.*

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** solstrategies@mgroupsc.com

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## Exhibit 99.32

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**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**1. Name and Address of Company**

Sol Strategies Inc. (formerly, Cypherpunk Holdings Inc.) (the "**Company**")

401-217 Queen Street West <br>Toronto, ON M5V 0R2

**2. Date of Material Change** 

September 12, 2024

**3. News Release**

A news release disclosing the material change was released on September 12, 2024 through the facilities of Newsfile Corp.

**4. Summary of Material Change**

On September 12, 2024, the Company announced it had filed Articles of Amendment effecting the change of its name to "Sol Strategies Inc." (the "**Name Change**").

**5. Full Description of Material Change**

On September 12, 2024 the Company announced it had completed the Name Change. The stock symbol on the Canadian Securities Exchange (the "**CSE**") will not be changed and will remain trading under "HODL". The name change was approved by shareholders at the Company's shareholder meeting held on July 30, 2024.

No action will be required by existing shareholders with respect to the name change. Certificates representing common shares of the Company will not be affected by the name change and will not need to be exchanged. The Company encourages any shareholder with any questions or concerns to contact the Company or to discuss any of the foregoing with their broker or agent. The Company will provide a further update regarding the effective date of the Name Change.

**6. Reliance on subsection 7.1(2) of National Instrument 51-102** 

The report is not being filed on a confidential basis.

**7. Omitted Information**

No significant facts have been omitted from this Material Change Report.

**8. Executive Officer**

For further information, contact Doug Harris, Chief Financial Officer of the Company at (416) 480-2488.

**9. Date of Report**

This report is dated at Toronto, this 24<sup>th</sup> day of September, 2024.

------

**Cautionary Statement Regarding Forward-Looking Information**

*This material change report contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this material change report are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this material change report, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.*

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## Exhibit 99.33

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**Sol Strategies Recovers Funds from FTX and Announces Increase in SOL Holdings and Staking Revenue**

**Toronto, Ontario-October 2, 2024**-Sol Strategies Inc., (formerly, Cypherpunk Holdings Inc., "Sol Strategies" or the "Company") (CSE: HODL) (OTC Pink: CYFRF), a Canadian company focused on blockchain investments, today announced the recovery of approximately CAD $825,450 (US $611, 494) in the form of USDC from Lucy Labs Flagship Offshore Fund SPC ("Lucy Labs") due to the recovery by Lucy Labs of capital held at FTX Trading Ltd ("FTX") pursuant to FTX's bankruptcy proceedings. The recovery represents a premium of 122% on the Company's original US$500,000 investment, which the Company had written off in December 2022, after FTX filed for Chapter 11 bankruptcy protection.

In addition to the recovered claim, Sol Strategies has increased its Solana investment holdings since its <u>previous public update</u> detailing its investment portfolio and financial activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Solana Holdings Increase:** The Company has increased its SOL holdings to 100,763.0230 SOL ($20.8 million<sup>(1)</sup>), which are currently held in Coinbase custody, including SOL used for staking. The average acquisition price of this SOL is approximately US$142.43, excluding commission and staking costs. As of July 31, 2024, the Company's last financial update, Sol Strategies' held 86,294.0575 SOL ($21.6 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Solana Staking Revenue:** The Company has generated gross revenue of 1,430 SOL ($282,910) from staking, with a gross profit of $266,680, since commencing staking on June 14, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Bitcoin:** The Company currently holds 56.2406 bitcoin in Coinbase custody, valued at approximately $4.8 million<sup>(1)</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Cash:** As of the date hereof, the Company has approximately $1,795,000 in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Other Investments:** The Company holds private equity/venture capital investments with a book value of approximately $442,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1) Based on closing prices and foreign exchange rates on September 30th, 2024.*

Leah Wald, CEO of Sol Strategies, commented: "The recovery of the claim is a welcome addition to our available funds and underscores Sol Strategies' commitment to maintaining a solid financial foundation. Coupled with our increased SOL holdings, these recovered assets are expected to be allocated within the Solana ecosystem."

**About Sol Strategies**

Sol Strategies is a publicly traded company committed to the continued development of the blockchain and cryptocurrency ecosystem through its activities in the private equity and financial markets and its support for related technology innovation. Through its investments, the Company offers its shareholders exposure to Solana through its direct investing and staking activities. By staking "SOL", Solana's native token, and potential future investments in Solana-based projects and infrastructure, the Company seeks to benefit from the potential growth of Solana and its other investments to drive value for its shareholders, including those seeking to avoid the complexities of managing cryptocurrency assets directly. Sol Strategies' mission is to lead the Solana ecosystem by generating a strong revenue stream through staking rewards and investing in emerging, high-potential Solana-based projects and infrastructure. To learn more about taking a stake in Sol Strategies' future, please visit our website at www.solstrategies.io. A copy of this news release and all material documents in respect of the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and strategies, the growth of Solana, and the Company's investments. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with the respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies Inc.

**Media contact:** <u>solstrategies@mgroupsc.com</u>

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## Exhibit 99.34

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**Sol Strategies Boosts SOL Holdings**

**Toronto, Ontario-October 10, 2024**-Sol Strategies Inc., (formerly, Cypherpunk Holdings Inc., "**Sol Strategies**" or the "**Company**") (CSE: HODL) (OTC Pink: CYFRF), a publicly traded, Canadian holding company committed to the continued development of the Solana blockchain and ecosystem through its investments, today announced that it has acquired 4,341.80 SOL at an average price of CAD $191.77 per SOL. As a result of the acquisition, the Company now holds a total of 105,249.82 SOL. SOL is the native cryptocurrency of the Solana blockchain. The Company intends to utilize the newly acquired SOL for staking within the Solana blockchain.

**Leah Wald, CEO of Sol Strategies, commented:** "With the successful recovery from FTX's bankruptcy proceedings, we've strategically increased our SOL holdings and enhanced our staking operations. This allocation strengthens our position in the Solana ecosystem and allows us to continue delivering value to our shareholders through efficient management of our digital asset portfolio."

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to take advantage of a range of investment opportunities through staking rewards and investments in Solana- based projects and infrastructure, allowing shareholders to indirectly participate in decentralized finance without the complexities of managing cryptocurrencies. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io.</u> A copy of this news release and all material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** solstrategies@mgroupsc.com

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## Exhibit 99.35

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**Sol Strategies Reports Increased Delegated Stake to its Validator**

**Toronto, Ontario**-**October 15, 2024**- Sol Strategies Inc., (formerly Cypherpunk Holdings Inc., "Sol Strategies" or the "Company") (CSE: HODL) (OTC Pink: CYFRF), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem**,** today announced a significant increase in the amount of SOL delegated to the Company's public validator for purposes of earning staking rewards on the Solana blockchain. Sol Strategies began staking operations on June 14, 2024.

As of October 15, 2024, approximately 225,158.82 SOL (CAD $48,086,433.94\*) had been delegated by its owners to the Company's validator for staking, including 105,288.99 SOL delegated by the Company and the remainder delegated by third parties. The Company earns staking fees and rewards in the form of new SOL from SOL delegated to its validator. As of October 15, 2024, the Company held a total of 105,389.79 SOL (CAD $22,493,066.54<sup>\*</sup>).

The Company benefited from the delegation of 118,596.55 SOL to its validator through the Solana Foundation's delegation program. Additionally, the growth in the delegated amount is attributed to the delegation by other third-parties, which contributed a delegation of 1,290.032993 SOL (CAD $275,328.36).

Leah Wald, CEO of Sol Strategies, commented: "The increased stake is a direct result of our team's operational excellence, strategic planning and dedication to maintaining top-tier validator performance. This milestone highlights Sol Strategies' commitment to the Solana network and reinforces its role in supporting the protocol's growth and decentralization for the long term."

*\*The above Canadian dollar (CAD) amount is based on prices and foreign exchange rates quoted by Coinbase (<u>https://www.coinbase.com/converter/sol/usd)</u> as at 3:20 pm ET on October 15, 2024.*

At the request of the Canadian Investment Regulatory Organization (CIRO), the Company also confirmed today that it is not aware of any material undisclosed information relating to the Company that may be contributing to the recent increase in market price and level of trading activity of its shares.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future staking holdings and plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** solstrategies@mgroupsc.com

------

## Exhibit 99.36

------

**Sol Strategies Announces CAD $10 Million Revolving Credit Facility**

**Toronto, Ontario-October 22, 2024-** Sol Strategies Inc., (formerly Cypherpunk Holdings Inc., "Sol Strategies" or the "Company") (CSE: HODL) (OTC Pink: CYFRF), a Canadian holding company that invests in the Solana blockchain and ecosystem, today announced that it has entered into an agreement dated October 21, 2024, with Antanas Guoga (the "Lender"), the Company's Chairman and director, providing for a $10 million unsecured, revolving demand credit facility (the "Credit Facility").

Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to $10 million (the "Commitment Amount") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to October 21, 2026 (the "Maturity Date"). The drawn and unpaid portion of the Commitment Amount (the "Principal Balance") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

The Company expects to use any borrowings under the Credit Facility for its day-to-day working capital requirements and investment purposes. No portion of the Credit Facility has been drawn as of the date of this news release.

Mr. Guoga commented on the investment: "Sol Strategies has demonstrated its operational excellence and commitment to maintaining top-tier validator performance in the Solana ecosystem. This loan reflects my confidence in its ability to continue driving the Company's growth operating within the Solana ecosystem."

Leah Wald, CEO of Sol Strategies added, "We are pleased to have arranged this non-dilutive financing with our chairman and major shareholder, which provides the Company with additional financial flexibility as we move forward with our objectives. Mr. Guoga's loan commitment also emphasizes his continued support and belief in the Company's strategic vision."

Related-party transaction and approval process by the Company's board of directors

The Lender is Chairman and a director of the Company. He also holds common shares and options to purchase common shares of the Company, representing approximately 36.0% of its outstanding common shares on an undiluted basis. For the Company, entering into the Credit Facility with the Lender is a "Related Party Transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements set out in sections 5.5(b) and 5.7(1)(f) of MI 61- 101 in connection with this transaction.

The Credit Facility was approved unanimously by the Company's board of directors, including by its independent directors, who determined that the Credit Facility was obtained by the Company on reasonable commercial terms not less favourable to the Company than if it had been obtained from a person dealing at arm's length with it.

------

The Company did not file a material change report at least 21 days prior to agreeing to the Credit Facility, because the Company's directors determined that it was in its interests to enter the Credit Facility upon settling its terms without delay. The directors determined that this was reasonable in the circumstances because it allowed the Company to avail itself of the Credit Facility in an expeditious manner. The Company intends to file a material change report containing all the prescribed disclosures relating to this related party transaction within the required timeframe.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF. To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cautionary** | **Note** | **Regarding** | **Forward-Looking** | **Information** |

---

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking statements in this news release include statements regarding the company's future staking holdings and intended use of proceeds from the Credit Facility and growth plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward- looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** solstrategies@mgroupsc.com

------

## Exhibit 99.37

------

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**1. Name and Address of Company**

Sol Strategies Inc. (the "**Company**")

217 Queen Street West, Suite 401 <br>Toronto, ON M5V 0R2

**2. Date of Material Change** 

October 21, 2024

**3. News Release**

A press release disclosing the material change was released on October 22, 2024, through the facilities of Newsfile Corp.

**4. Summary of Material Change**

On October 21, 2024, the Company entered into an agreement (the "**Agreement**") dated October 21, 2024 with Antanas (Tony) Guoga (the "**Lender**"), pursuant to which the Company has obtained a revolving demand credit facility of up to CAD$10,000,000 to fund the Company's general corporate and working capital requirements from time to time (the "**Credit Facility**").

**5. Full Description of Material Change**

On October 21, 2024, the Company entered into the Agreement.

Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to CAD$10,000,000 (the "**Commitment Amount**") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to October 21, 2026 (the "**Maturity Date**"). The drawn and unpaid portion of the Commitment Amount (the "**Principal Balance**") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

The Company expects to use any borrowings under the Credit Facility for its day-to-day working capital requirements and investment purposes. No portion of the Credit Facility has been drawn as of the date of this Material Change Report.

The following supplementary information is provided in accordance with Section 5.2 of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("**MI 61-101**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) a description of the transaction and its material terms:**

On October 21, 2024, the Company entered into the Agreement with the Lender, who is a director, Chairman and a shareholder of the Company.

------

**(b) the purpose and business reasons for the transaction:**

The Company entered into the Agreement to fund the Company's general corporate and working capital requirements.

**(c) the anticipated effect of the transaction on the issuer's business and affairs:**

The Company's general corporate and working capital requirements will be funded by the Credit Facility.

**(d) a description of:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) the interest in the transaction of every interested party and of the related parties and associated entities of the interested parties:**

On October 21, 2024, the Company entered into Agreement with the Lender, who is a director, Chairman and shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) the anticipated effect of the transaction on the percentage of securities of the issuer, or of an affiliated entity of the issuer, beneficially owned or controlled by each person or company referred to in subparagraph (I) for which there would be a material change in that percentage:**

Prior to entering into the Agreement, Mr. Guoga held, directly or indirectly, an aggregate of 53,872,187 common shares (the "**Common Shares**") in the capital of the Company and 2,000,000 stock options. Upon entering into the Agreement, Mr. Guoga holds, director or indirectly, an aggregate of 53,872,187 Common Shares and 2,000,000 stock options, representing approximately 36% of the issued and outstanding Common Shares on a non-diluted and 37% on a partially diluted basis.

**(e) unless this information will be included in another disclosure document for the transaction, a discussion of the review and approval process adopted by the board of directors and the special committee, if any, of the issuer for the transaction, including a discussion of any materially contrary view or abstention by a director and any material disagreement between the board and the special committee:**

A resolution of the board of directors was passed on October 18, 2024, approving the Agreement. No special committee was established in connection with the transaction, and no materially contrary view or abstention was expressed or made by any director.

**(f) A summary in accordance with section 6.5 of MI 61-101, of the formal valuation, if any, obtained for the transaction, unless the formal valuation is included in its entirety in the material change report or will be included in its entirety in another disclosure document for the transaction:**

Not applicable.

**(g) disclosure, in accordance with section 6.8 of MI 61-101, of every prior valuation in respect of the issuer that relates to the subject matter of or is otherwise relevant to the transaction:**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) that has been made in the 24 months before the date of the material change report:**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) the existence of which is known, after reasonable enquiry, to the issuer or to any director or officer of the issuer:**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) the general nature and material terms of any agreement entered into by the issuer, or a related party of the issuer, with an interested party or a joint actor with an interested party, in connection with the transaction:**

Other than the Agreement, the Company did not enter into any agreement with an interest party or a joint actor with an interested party in connection with Credit Facility. To the Company's knowledge, no related party to the Company entered into any agreement with an interest party or a joint actor with an interested party, in connection with the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) disclosure of the formal valuation and minority approval exemptions, if any, on which the issuer is relying under sections 5.5 and 5.7 of MI 61-101 respectively, and the facts supporting reliance on the exemptions:**

The transaction contemplated by the Agreement is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 - *Protection of Minority Securityholders in Special Transactions* ("**MI 61-101**"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(f) of MI 61- 101, as the Company is not listed on a specified market and the board of directors of the Company (the "**Board**") determined that the terms of the Agreement are on reasonable commercial terms that are not less advantageous to the Company than if the Agreement were obtained from a person dealing at arm's length to the Company, and the Credit Facility is not (i) convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary of the Company, or otherwise participating in nature; or (ii) repayable as to principal or interest, directly or indirectly, in equity or voting securities of the Company or a subsidiary of the Company.

**6. Reliance on subsection 7.1(2) of National Instrument 51-102** 

The report is not being filed on a confidential basis.

**7. Omitted Information**

No significant facts have been omitted from this Material Change Report.

**8. Executive Officer**

For further information, contact Doug Harris, Chief Financial Officer of the Company at 416-480- 2488.

------

**9. Date of Report**

This report is dated at Toronto, this 23<sup>rd</sup> day of October, 2024.

**Cautionary Statement Regarding Forward-Looking Information**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this material change report.

This material change report contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this material change report include statements regarding the company's intended use of proceeds from the Credit Facility and growth plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward- looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

## Exhibit 99.38

------

**Sol Strategies Announces Letter of Intent to Acquire Validators and Financial Update**

Toronto, Ontario--(Newsfile Corp. - October 25, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) (formerly, Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced a corporate update. Included in this update is a Letter of Intent to acquire four blockchain validators from an arm's length party.

The following is an update on the Company's financial activities and investment portfolio since its most recent <u>financial disclosure</u> on October 22, 2024:

**Letter of Intent to Acquire Validators**

On October 21, 2024, the Company entered into a non-binding letter of intent with an arm's length party (the "Vendor"), pursuant to which the Company will acquire four blockchain validators (the "Validators") from the Vendor (the "Proposed Transaction").

The consideration for the Proposed Transaction is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) CAD $1,384,500 (USD $1,000,000) of cash, payable on closing

&nbsp;&nbsp;&nbsp;&nbsp;(ii) CAD $1,384,500 (USD $1,000,000) of Sol Strategies common shares, payable at closing

&nbsp;&nbsp;&nbsp;&nbsp;(iii) CAD $7,614,750 (USD $5,500,000) of Sol Strategies common shares issuable to Vendor over a period of three years from the date of closing, subject to performance targets.

Completion of the Proposed Transaction is subject to customary conditions including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company and the Vendor entering into a definitive agreement

&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt of all required consents; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) regulatory approval.

There are no finder's fees payable in connection with the Proposed Transaction.

**Loan Drawdown**

On October 23, 2023, the Company drew down USD $2,000,000 (CAD $2,769,000) from its CAD $10,000,000 loan facility (the "Loan Facility") announced on October 22, 2024. The funds have been transferred to Coinbase Prime and the Company has used the capital to acquire Solana ("SOL").

**Solana Holdings Increase**

The Company announced an increase in its SOL holdings to 117,619.10 SOL (CAD $28,632,798) currently held in Coinbase custody, including SOL used for staking. As of the Company's October 10, 2024, <u>financial update,</u> Sol Strategies held 105,249.82 SOL. The increase of 12,369.28 SOL is mainly due to the acquisition of 12,000 SOL at an average cost of USD $172.81 (CAD $239.25) and 369.28 SOL (CAD $89,896.28) from staking operations. The additional 12,000 SOL has been delegated to the Company's Solana Validator.

**Solana Staking Revenue**

Following its commitment to the Solana ecosystem by operating its own SOL validators and generating recurring revenues, the Company has generated gross revenue of 1,944.22 SOL (CAD $473,294 at current SOL prices), with a gross profit of CAD $454,000, since commencing staking on June 14, 2024.

**Bitcoin Holdings**

------

The company sold 8.57 bitcoin at an average price of USD $66,369 (CAD $91,947) for gross proceeds of USD $568,783 (CAD $787,991). The Company currently holds 47.67 bitcoin in with a value of approximately CAD $4,501,290.

**Purchase of Solana Call Options**

On October 24th, 2024, the Company entered into a call option agreement to acquire 8,000 SOL at a strike price of USD $190, which was financed by selling 8,000 SOL put options at a strike price of USD $160. The option agreement expires on December 6, 2024.

**Other Investments**

The company has private equity/venture capital investments with a book value of approximately CAD $442,000.

**Cash**

As at the date hereof the Company has approximately CAD $2,393,700 in cash.

**Liabilities**

As at the date hereof the Company has net liabilities of approximately $80,000.

*(1) The above Canadian dollar (CAD) amount is based on cryptocurrency prices rates from Coinbase on October 24, 2024 and F/X rates quoted from the Bank of Canada.*

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE**: Sol Strategies

**Media contact**: <u>solstrategies@mgroupsc.com</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/227801</u>

------

## Exhibit 99.39

------

**Sol Strategies Sells Bitcoin, Buys Solana**

Toronto, Ontario--(Newsfile Corp. - October 29, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) (formerly, Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced that it acquired 12,389 SOL at an average price of CAD $240.12. As a result of the acquisition, the Company now holds a total of 130,125.2186 SOL with a value of CAD $32,202,081. Concurrently, Sol Strategies sold 24.5026 bitcoin at an average price of CAD $95,878.28 for gross proceeds of CAD $2,349,267. The Company currently holds 23.168 bitcoin with a value of approximately CAD $2,250,466.

**Leah Wald, CEO of Sol Strategies commented:** "Reallocating a portion of our BTC holdings to SOL reflects Sol Strategies' strategic alignment with Solana's evolving value proposition within decentralized finance. While Bitcoin remains foundational to the digital asset landscape, we recognize Solana's growth trajectory and innovative capabilities as uniquely positioned to drive the next phase of blockchain infrastructure."

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to take advantage of a range of investment opportunities through staking rewards and investments in Solana-based projects and infrastructure, allowing shareholders to indirectly participate in decentralized finance without the complexities of managing cryptocurrencies. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io.</u> A copy of this news release and all material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws.

Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**Media contact:** <u>solstrategies@mgroupsc.com</u>

**SOURCE**: Sol Strategies Inc.

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/228185</u>

------

## Exhibit 99.40

------

**Sol Strategies Announces Option Grant**

**TORONTO, ONTARIO, October 29, 2024 - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) (formerly, Cypherpunk Holdings Inc.) (the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, is pleased to announce that it has granted 279,500 stock options to purchase 279,500 common shares (each a, "Common Share") of the Company at a price of $2.02 per Common Share, expiring on October 28, 2029 to a director of the Company. The Common Shares issuable upon exercise of the options are subject to a four-month hold period from the original date of grant.**

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.<br>

------

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE**: Sol Strategies

**Media contact**: solstrategies@mgroupsc.com

------

## Exhibit 99.41

------

**Sol Strategies Enters into Definitive Agreement for the Acquisition of High-Performance Validators**

**From Cogent Crypto**

**TORONTO, Ontario - November 14, 2024 -** Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) (formerly, Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced it has entered into a definitive agreement dated November 14, 2024 (the "Definitive Agreement") for the acquisition of four validators (each a "Validator") and certain assets related to the Validators from <u>Cogent Crypto</u>, a high-performance validator operating within the Solana ecosystem (the "Acquisition").

The Acquisition would increase the amount of SOL delegated to Sol Strategies-owned Solana validators to 948,804 SOL (CAD $285,866,889), an increase of 699,012 SOL (CAD $210,570,732), enabling Sol Strategies to earn validation commission on this delegation.

Three other validator assets to be acquired on the SUI, MONAD, and ARCH network have cumulative delegations of CAD $181,444,889.40.

Validators play a crucial role in maintaining transaction integrity and network stability while enabling yield generation through staking-a role Cogent Crypto has distinguished itself in with exceptional reliability and technical rigor. The Acquisition positions Sol Strategies to capitalize on Cogent Crypto's proven success and further the growth of the Company's staking operations with the addition of new, high-quality validator infrastructure.

CAD to USD calculations in this news release are based on quotes from Google Finance as at November 14, 2024. SOL to CAD and SUI to CAD calculations are based on Coin Base converter as of November 13, 2024.

**Leah Wald, CEO of Sol Strategies commented:** "For this next phase of Sol Strategies, we are focused on making the Company's first acquisition to advance the Company's long-term growth strategy. This acquisition will meaningfully expand Sol Strategies' staking capabilities, which underpins Solana's reputation as a next generation blockchain for institutional and decentralized applications alike. By building on Cogent Crypto's established role in the ecosystem, Sol Strategies is positioned to support the future of decentralized finance and drive long-term value creation for shareholders."

**Acquisition Terms**

Pursuant to the terms of the Acquisition, Sol Strategies will acquire a 78% interest in a Validator on the Solana blockchain and a 100% ownership interest in Validators on the SUI blockchain, Monad blockchain, and Arch blockchains including main networks and test networks, and all accounts, information, data, infrastructure, intellectual property, rights, authorities and other property and components required for or associated with the access, management, operation and other use or exploitation of such Validator in the business of Cogent Crypto (the "Purchased Assets"). Sol Strategies will assume full operational control of Cogent Crypto's Validators effective immediately on the closing of the Acquisition (the "Closing").

------

Under the Definitive Agreement and in consideration for the Purchased Assets, the Company will (i) pay USD $1,000,000 in cash on Closing, (ii) issue 1,162,000 common shares of Sol Strategies (each a "Common Share") on Closing (valued at a price of CAD $1.20 per Common Share), and (iii) issue 18,592,000 Common Shares (valued at a price of CAD $1.20 per Common Share) over a period of three years from Closing on specific dates prescribed in the Definitive Agreement (the "Remaining Share Consideration"). The Common Shares issued as consideration for the Acquisition are subject to a statutory four-month hold period upon issuance and certain mutually agreed to trading restrictions.

On each business day prior to the issuance of the Remaining Share Consideration if the total amount of Solana staked to the Solana Validator is 5% or more less than the amount of Solana staked at Closing the Remaining Share Consideration to be paid on the applicable payment date prescribed in the Definitive Agreement shall be reduced by an equal percentage difference.

The Acquisition remains subject to customary closing conditions, including the approval of the Canadian Securities Exchange.

The Company will not be assuming any long-term debt, and no finder's fees are payable in conjunction with the Acquisition.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition, (ii) expectations regarding the Company's closing times and future development opportunities in connection with Acquisition; (iii) expectations regarding the timing and closings thereof; and (iv) expectations concerning the Company's business plans and operations. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding completion of the Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact**: solstrategies@mgroupsc.com

------

## Exhibit 99.42

------

**Sol Strategies Appoints Prominent Digital**

**Assets Investor Anthony Pompliano as**

**Company Advisor**

Toronto, Ontario--(Newsfile Corp. - November 25, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced the appointment of Anthony Pompliano as an advisor to the Company. As an entrepreneur, investor, and prominent advocate for digital assets, Mr. Pompliano leverages his extensive experience to provide strategic direction to Sol Strategies.

Mr. Pompliano brings a wealth of expertise in digital assets and venture capital to Sol Strategies. Currently, he is the founder and CEO of Professional Capital Management, an investment firm allocating capital across public and private markets. His pioneering efforts in digital asset education, through ventures like The Pomp Podcast and The Pomp Letter, have cemented his reputation as a trusted voice in the crypto industry. Additionally, Mr. Pompliano has a proven track record as an investor, backing companies like Coinbase, Lyft, Reddit, and Everlywell.

"Joining Sol Strategies as an advisor is an incredible opportunity to contribute to the growth of the company," **said Anthony Pompliano on his appointment**. "Sol Strategies' commitment to giving public market investors access to the Solana ecosystem is a valuable strategy that should be well-received by capital allocators. I look forward to working with the team to drive impactful investments and accelerate the business."

**Leah Wald, CEO of Sol Strategies, commented on the appointment:** "With the growing interest in the Solana ecosystem, Mr. Pompliano's unparalleled experience in bridging traditional finance and digital assets makes him an invaluable addition to Sol Strategies. His insights will be instrumental in advancing our mission to ensure secure pathways for investors to access Solana's success."

In exchange for the advisory services, the Company has agreed to grant 563,669 restricted share units to Mr. Pompliano, subject to the approval of the Company's board and shareholders and the Canadian Securities Exchange.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) expectations regarding the characteristics, value drivers, and anticipated benefits of the engagement, and (ii) expectations concerning the Company's business plans and operations. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Acquisition and its intended impact on the Company, the Company's future investing plans, and staking plans. There is no assurance that the Acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact**: <u>solstrategies@mgroupsc.com</u>

------

![](exhibit99-42x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/231271</u>

------

## Exhibit 99.43

------

**Sol Strategies Announces Completion of Cogent Crypto Validator Acquisition**

**TORONTO, Ontario - November 25, 2024 -** Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced the completion of its previously <u>disclosed definitive agreement</u> to acquire four blockchain validators (the "Validators") and certain assets related to the Validators from Cogent Crypto (the "Completed Acquisition").

The integration of Cogent Crypto's operations is expected to deliver immediate value to Sol Strategies by increasing validator capacity and boosting staking revenue. The Company plans to maintain Cogent Crypto's operational excellence while leveraging its resources to scale its validator network further.

The Completed Acquisition increases the total SOL delegated to the Company's Solana validators to 941,224 SOL, valued at CAD $336,180,652. Validators on the SUI, Monad, and Arch blockchains carry additional token delegations valued at CAD $172,024,602.

According to <u>Cogent Crypto's Validator Profit Calculator</u>, the expected yearly net income from Cogent's Solana validator operation is currently projected at $6,783,157 CAD, showcasing the potential of the validator's economic contributions to Sol Strategies' business model.

This projection is based on current market conditions, staking levels, and Solana network performance, and is subject to change due to factors such as validator uptime, network activity, and fluctuations in token prices.

CAD to USD calculations in this news release are based on quotes from Google Finance as of November 25, 2024. SOL to CAD and SUI to CAD calculations are based on the Coinbase converter as of November 25, 2024, at 2:30 p.m., eastern time. Solana validator numbers are found on stakewiz.com and SUI validator numbers are found on https://suigo.app/.

Effective immediately, Sol Strategies has assumed full operational control of Cogent Crypto's Validators, following the approval of the Canadian Securities Exchange and the announcement of today's Completed Acquisition.

**Leah Wald, CEO of Sol Strategies, commented: "*As interest in Solana continues to expand, solidifying its position as a premier blockchain for decentralized finance, we remain focused on planting our flag firmly within the ecosystem. The acquisition of Cogent Crypto's validators marks a pivotal moment in Sol Strategies' mission to drive the growth and adoption of the Solana ecosystem. By expanding our staking capabilities, we are enhancing our ability to deliver value to shareholders while solidifying Solana's role as a cornerstone of the digital asset landscape*."**

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

------

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) expectations regarding the characteristics, value drivers, and anticipated benefits of the Completed Acquisition, (ii) expectations regarding the Company's future development opportunities in connection with Completed Acquisition;; and (iii) expectations concerning the Company's business plans and operations. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding completion of the Completed Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact**: solstrategies@mgroupsc.com

------

## Exhibit 99.44

------

**Sol Strategies Announces Completion of Cogent Crypto Validator Acquisition**

Toronto, Ontario--(Newsfile Corp. - November 25, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, today announced the completion of its previously <u>disclosed definitive agreement</u> to acquire four blockchain validators (the "Validators") and certain assets related to the Validators from Cogent Crypto (the "Completed Acquisition").

The integration of Cogent Crypto's operations is expected to deliver immediate value to Sol Strategies by increasing validator capacity and boosting staking revenue. The Company plans to maintain Cogent Crypto's operational excellence while leveraging its resources to scale its validator network further.

The Completed Acquisition increases the total SOL delegated to the Company's Solana validators to 941,224 SOL, valued at CAD $336,180,652. Validators on the SUI, Monad, and Arch blockchains carry additional token delegations valued at CAD $172,024,602.

According to <u>Cogent Crypto's Validator Profit Calculator</u>, the expected yearly net income from Cogent's Solana validator operation is currently projected at $6,783,157 CAD, showcasing the potential of the validator's economic contributions to Sol Strategies' business model.

This projection is based on current market conditions, staking levels, and Solana network performance, and is subject to change due to factors such as validator uptime, network activity, and fluctuations in token prices.

CAD to USD calculations in this news release are based on quotes from Google Finance as of November 25, 2024. SOL to CAD and SUI to CAD calculations are based on the Coinbase converter as of November 25, 2024, at 2:30 p.m., eastern time. Solana validator numbers are found on stakewiz.com and SUI validator numbers are found on <u>https://suigo.app/</u>.

Effective immediately, Sol Strategies has assumed full operational control of Cogent Crypto's Validators, following the approval of the Canadian Securities Exchange and the announcement of today's Completed Acquisition.

**Leah Wald, CEO of Sol Strategies, commented:** "*As interest in Solana continues to expand, solidifying its position as a premier blockchain for decentralized finance, we remain focused on planting our flag firmly within the ecosystem. The acquisition of Cogent Crypto's validators marks a pivotal moment in Sol Strategies' mission to drive the growth and adoption of the Solana ecosystem. By expanding our staking capabilities, we are enhancing our ability to deliver value to shareholders while solidifying Solana's role as a cornerstone of the digital asset landscape*."

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) expectations regarding the characteristics, value drivers, and anticipated benefits of the Completed Acquisition, (ii) expectations regarding the Company's future development opportunities in connection with Completed Acquisition; and (iii) expectations concerning the Company's business plans and operations. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding completion of the Completed Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

------

**Media contact**: <u>solstrategies@mgroupsc.com</u>

![](exhibit99-44x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/231366</u>

------

## Exhibit 99.45

------

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. ("**Sol Strategies**" or the "**Company**") <br>217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

November 25, 2024

**Item 3 - News Release:**

The news releases announcing the material change referred to in this report were disseminated over Cision on November 14, 2024 and over Newsfile on November 25, 2024 and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On November 25, 2024, the Company announced that it had closed the asset purchase transaction previously announced on November 14, 2024 to acquire four blockchain validators and certain assets related to the validators from Ben Hawkins (dba Cogent Crypto).

**Item 5 - Full Description of Material Change:**

**5.1 Full Description of Material Change**

On November 14, 2024, the Company announced that it entered into an asset purchase agreement (the "**Asset Purchase Agreement**") with Ben Hawkins (dba Cogent Crypto) (the "**Seller**") for the purchase of all of the assets that the Seller owns and carries in his business of operating and managing nodes that validate transactions on certain blockchain networks, including on the Solana, SUI, Monad and Arch blockchain networks and offering staking services on such networks, including the assets listed under the Asset Purchase Agreement (the "**Acquisition**").

In consideration for the purchased assets, the Company paid the Seller $1,000,000 USD and issued 1,162,000 common shares in the capital of the Company ("**Common Shares**") to the Seller at closing of the Acquisition, and will pay up to 18,592,000 Common Shares over three years from the closing of the Acquisition.

On November 25, 2024, the Company announced closing of the Acquisition. Effective as of November 25, 2024, Sol Strategies has assumed full operational control of Cogent Crypto's validators.

------

**5.2 Disclosure for Restructuring Transactions** 

Not applicable.

**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer <br>416-480-2488 <br>doug@solstrategies.io

**Item 9 - Date of Report:**

November 26, 2024

------

## Exhibit 99.46

------

**EXECUTION VERSION**

**ASSET PURCHASE AGREEMENT**

This Agreement is entered into as of the 14<sup>th</sup> day of November, 2024

BETWEEN:

**BEN HAWKINS**

(the "**Seller**")

- and -

**SOL STRATEGIES INC.**

(the "**Buyer**")

**W I T N E S S E T H**

**WHEREAS**, the Seller owns and carries on the business of operating and managing nodes that validate transactions on certain blockchain networks ("**Validators**" and each, a "**Validator**"), including on the Solana, SUI, Monad and Arch blockchain networks and offering staking services on such networks (the "**Business**");

**WHEREAS**, the Seller wishes to sell and assign to the Buyer, and the Buyer wishes to purchase and assume from the Seller title to and all rights and obligations of the Seller in the Purchased Assets, subject to the terms and conditions set forth herein;

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE 1**

**PURCHASE AND SALE OF ASSETS**

1.1 <u>Assets to be Transferred</u>. Subject to the terms and conditions of this Agreement, the Seller agrees to sell to the Buyer, and the Buyer agrees to purchase, free and clear of all Encumbrances, all of the assets owned by the Seller in the Business (but excluding the Excluded Assets) (collectively the "**Purchased Assets**") including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Blockchain Validator Accounts and Public Keys.</u> A 78% ownership interest in the Validator on the Solana blockchain and a 100% ownership interest in the Validators on the SUI blockchain, Monad blockchain and Arch blockchain, including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such Validator in the Business (each of which is a "**Solana Validator**", "**SUI Validator**", "**Monad Validator**" and "**Arch**

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**Validator**" respectively, and together the "**Blockchain Validators**"), which include but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the cryptographic keys that are publicly available and accessible for the purpose of identifying the Blockchain Validators on the applicable blockchain networks ("**Public Keys**"), specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for the Solana Validator, the authorized withdrawer account with the Public Key (which is to be transferred to the Buyer by updating the Public Key and pairing it with a key or account owned by the Buyer), the identity account with the Public Key and the vote account with the Public Key ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for the SUI Validator, the validator account with the Public Key and the operation account with the Public Key

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) for the Monad Validator, the Public Key(s) for the Monad test network; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) for the Arch Validator, the Public Key(s) for the Arch test network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the confidential cryptographic keys that are paired with the Public Keys and provide exclusive access rights to the Blockchain Validators' accounts set out in the section 1.1(a)(i) and authorize the holder to perform activities by the Blockchain Validators (the "**Private Keys**"). Notwithstanding the foregoing, Private Keys for the authorized withdrawer account for the Solana Validator (listed in Section 1.1(a)(i)(A)) will not be transferred to the Buyer but instead, these Private Keys will be updated to pair with new Private Keys owned by the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all rights and authorities relating to the cloud servers or similar services provided by third parties including that support the Blockchain Validators and operations of the Business, including all access credentials and account information, and all agreements between such third parties and the Seller (the "**Server Agreements**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all rights and authorities, including those for administration and operation, associated with the discord and telegram channel(s) and other communication and collaboration tools for the launching of the Monad Validator and Arch Validator on the main networks of the Monad blockchain and Arch blockchain.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intellectual Property.</u> All Seller Intellectual Property, including, without limitation, the Intellectual Property listed in <u>Exhibit A</u> attached hereto, together with any and all software, scripts, configurations, applications and tools owned, or developed in connection with the Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Property</u>. All instruction manuals, service bulletins, operational procedures, security protocols and other similar documentation, lists of customers and suppliers (together with sales and purchase histories), price lists, material specifications, prototypes, equipment or inventory used for research and development in connection with the Business, and other documents or information generated or used in the Seller's operation of the Business, together with the goodwill of the Business.

1.2 <u>Excluded Assets</u>. Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere in this Agreement, the following assets of Seller are not part of the sale and purchase contemplated hereunder, are excluded from the Purchased Assets and shall remain the property of Seller after the Closing (collectively, the "**Excluded Assets**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a 22% ownership interest in the Solana Validator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) credit agreements, bank agreements, promissory notes, guarantees, letters of credit, letters of guarantee, negotiable instruments, any lease of any property that would be required to be classified and accounted for as a capital lease in accordance with generally accepted accounting principles and any mortgages and other security agreements that create an Encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all claims for refund of taxes and other governmental charges relating to the Business for any periods arising prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all claims, actions, deposits, prepayments, refunds, causes of action, rights of recovery, rights of set off, and rights of recoupment of any kind or nature (including any such item relating to taxes) relating to the Excluded Assets arising prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all rights of Seller under this Agreement and any Transfer Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all contracts with any independent contractors or employees of Seller prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the cgntSOL liquid staking token;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Cogent Cogs, being the Non-Fungible Tokens of the Business ("**Cogent Cogs**"), including any relationships or arrangements with holders of Cogent Cogs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all claims of Seller against third parties relating to the Business or the Purchased Assets, whether choate or inchoate, known or unknown, contingent or non- contingent for any period prior to the Closing Date; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all computer hardware owned by Seller and used in the Business.

1.3 <u>Co-Ownership Rights and Restrictions</u>. The Seller and the Buyer acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) after the closing of the transaction contemplated by this Agreement, the Solana Validator will be co-owned by the Seller (22%) and the Buyer (78%), subject to the remainder of this section; the Buyer shall have the exclusive right to access, manage, operate, control and otherwise use and exploit the Solana Validator and all components thereof. Without limiting the foregoing, the Seller shall not license or permit any third party to access, manage, operate or otherwise use or exploit the Solana Validator. Without limiting the foregoing, the Buyer shall have the right to exclusive control and management over all aspects of the operation of the Solana Validator, including the generation, management, and safeguarding of the Solana Validator's Private Keys and operational decision making authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Seller shall be entitled to 22% (the "**Seller's Excluded Rewards**") and the Buyer shall be entitled to 78% of all profits generated by the Solana Validator. For purposes of this section, "profits" shall be calculated as follows: inflation commission plus MEV commission plus block rewards minus voting fee. For greater certainty, the ownership interest of the Seller is limited to the economic interest as set forth in this section 1.3(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) except as expressly provided above, the Buyer shall have no obligation to account to the Seller for any activity of the Buyer in respect of the Solana Validator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) both the Seller and the Buyer may assign their respective interest in the Solana Validator to a third party upon written notice to, but without the need for the consent of, the other party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) neither the Seller nor the Buyer shall be entitled to transfer the whole of, or anything more than its respective interest in, the Solana Validator to any third party.

**ARTICLE 2**

**EXCLUDED LIABILITIES**

2.1 <u>Excluded Liabilities</u>. The Buyer will not and does not assume, agree to perform or discharge, or indemnify the Seller against, or otherwise have any responsibility for, any liabilities and obligations, whether known, unknown, direct, indirect, absolute, contingent or otherwise, of the Seller whether arising prior to, on or after the date hereof, including: (a) all liabilities or obligations with respect to the Business, the Purchased Assets or the Excluded Assets (including any present or future liabilities related to Cogent Cogs), (b) any direct or indirect indebtedness, liabilities, product warranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or contingent, known or unknown, (c) any tax liabilities, and (d) all liabilities and obligations of the Seller in respect of any present or former employees or independent contractors, including in respect of their employment or service or the termination thereof (collectively, the "**Excluded Liabilities**"). The Seller will perform and discharge the Excluded Liabilities when due. As used in this Agreement, the term "**liability**" shall be broadly interpreted.

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**ARTICLE 3**

**PURCHASE PRICE - PAYMENT**

3.1 <u>Purchase Price</u>. The aggregate purchase price for the Purchased Assets shall be (collectively, the "**Purchase Price**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) US$1,000,000 to be delivered at Closing (the "**Cash Consideration**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 1,162,000 common shares in the capital of the Buyer ("**Common Shares**") at a price of C$1.20 per share (the "**Closing Share Consideration**") to be delivered at Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 18,592,000 Common Shares at a price of C$1.20 per share (the "**Remaining Share Consideration**" and together with the Closing Share Consideration, the "**Share Consideration**") to be distributed over three years from the Closing Date in accordance with Section 3.2(c).

3.2 <u>Payment of Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer shall pay the Cash Consideration to the Seller on Closing by way of wire transfer of immediately available funds or such other method as may be agreed upon by the Buyer and Seller. The Buyer may pay the Cash Consideration in SOL, with the value of such SOL determined by mutual agreement between the Buyer and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer shall pay the Closing Share Consideration to the Seller at Closing by issuing 1,162,000 Common Shares, registered in accordance with the registration instructions provided by the Seller to the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 3.5, the Buyer shall pay the Remaining Share Consideration to the Seller by issuing the following number of Common Shares on the following dates, in each case in accordance with registration instructions provided by the Seller to the Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 3,098,667 Common Shares on the date that is six months from the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 3,098,667 Common Shares on the date that is 12 months from the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) 3,098,667 Common Shares on the date that is 18 months from the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 3,098,667 Common Shares on the date that is 24 months from the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) 3,098,666 Common Shares on the date that is 30 months from the Closing Date; and

3,098,666 Common Shares on the date that is 36 months from the Closing Date.

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3.3 <u>Hold Period.</u> The Common Shares to be issued to the Buyer pursuant to Sections 3.1(b) and 3.1(c) will be subject to all applicable the securities laws of each of the provinces and territories of Canada and the policies and regulations of the Canadian Securities Exchange ("**CSE**"), as they may be promulgated or amended from time to time (collectively, the "**Applicable Securities Laws**") and issued pursuant to available prospectus exemptions under Applicable Securities Laws.

3.4 <u>Trading Restrictions.</u> The Common Shares issuable pursuant to the Share Consideration will, unless as otherwise permitted hereunder, be subject to voluntary resale restrictions whereby the Seller shall not sell more than 15% of the five day VWAP in any single trading day. "**VWAP**" means the volume weighted average trading price of the Common Shares on the CSE, calculated by dividing the total value by the total volume of Common Shares traded on the CSE for the relevant period.

<u>3.5</u> <u>Purchase Price Adjustments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of 5:00 p.m. (Toronto time) on the business day prior to the Closing Date (the "**Initial Stake**") and on each business day prior to the payment dates contemplated by Section 3.2(c) (each, a "**Subsequent Stake**"), the Buyer shall calculate the total delegated stake on the Solana Validator. If any Subsequent Stake amount is 5% or more less than the Initial Stake, the Remaining Share Consideration to be paid on the applicable payment date shall be reduced by an equal percentage difference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Buyer shall ensure that the Solana Validator's returns remain within the top 35<sup>th</sup> percentile, as calculated in accordance with the method outlined in <u>Exhibit C</u>. If at any time, the Solana Validator's returns fall below this percentile, the Seller will inform the Buyer in writing. If the Solana Validator does not return to being within the top 30<sup>th</sup> percentile, as calculated above, within thirty (30) days of receiving the Seller's written notice, the Buyer shall forego any future purchase price adjustment under this Section 3.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any adjustments to the Purchase Price shall be treated as an adjustment to the Purchase Price by the parties for tax purposes, unless otherwise required by applicable law.

3.6 <u>Seller's Additional Obligations.</u> After the Closing, the Seller shall from time to time at the request of the Buyer, and without further cost or expense to the Buyer, execute and deliver such other instruments of conveyance and take such other action as the Buyer may reasonably request in order to consummate the transactions contemplated hereby and to vest in the Buyer good and marketable title to the Purchased Assets being transferred hereunder.

3.7 <u>Allocation of the Purchase Price</u>. The Buyer and Seller shall agree in writing to the allocation of the Purchase Price among the Purchased Assets prior to Closing.

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3.8 <u>Transfer Taxes</u>. Each party to this Agreement acknowledges that the Purchase Price includes any goods and services, harmonized sales, sales, retail sales, use, consumption, customs, excise, stamp, transfer, VAT or similar taxes, duties or charges ("**Transfer Taxes**"). All Transfer Taxes imposed or levied by reason of, in connection with or attributable to this Agreement and the transactions contemplated hereby shall be borne by the Seller. The parties shall cooperate with each other to the extent reasonably requested and legally permitted to minimize any such Transfer Taxes. The party required by law to file a tax return with respect to such Transfer Taxes shall do so within the time period prescribed by law.

3.9 <u>Withholding Tax.</u> The Buyer shall be entitled to deduct or withhold from any consideration or amount otherwise payable or deliverable to the Seller under this Agreement, such amounts as the Buyer may reasonably determine is required to be deducted and withheld with respect to such payment under any provision of laws in respect of taxes. To the extent that amounts are so deducted or withheld, such deducted or withheld amounts shall be treated for all purposes hereof as having been paid to the Seller, in respect of which such deduction or withholding was made, provided that such deducted or withheld amounts are actually remitted to the appropriate government authority. To the extent that the amount so required to be deducted or withheld from any payment to the Seller exceeds the cash component, if any, of the consideration otherwise payable to such person, the Buyer is hereby authorized to sell or otherwise dispose of such portion of the Share Consideration issuable to the Seller as is necessary to provide sufficient funds to the Buyer to enable it to comply with such deduction or withholding requirement, and the Buyer shall notify the Seller thereof and remit the applicable portion of the net proceeds of such sale (after deduction of all fees, commissions or costs in respect of such sale) to the appropriate government authority and shall remit to such holder any unapplied balance of the net proceeds of such sale. Any sale will be made at prevailing market prices and the Buyer shall not be under any obligation to obtain or indemnify any Seller in respect of a particular price for the Share Consideration so sold.

**ARTICLE 4**

**CLOSING**

4.1 <u>Place and Time of Closing.</u> The closing of the transactions contemplated by this Agreement (the "**Closing**") shall take place virtually by exchange of confirmatory emails of the parties, on or before the second day after all of the conditions to closing set forth in this Article 4 are either satisfied or waived, or at such other time, date or place as the parties may mutually agree in writing (the "**Closing Date**"). At the Closing, the Seller will deliver to the Buyer good and marketable title to the Purchased Assets free and clear of any and all Encumbrances. The Seller will duly execute and deliver to the Buyer at the Closing such bills of sale, assignments, endorsements and other good and sufficient instruments of conveyance and transfer reasonably satisfactory to the Buyer (collectively, the "**Transfer Documents**") as shall be effective to vest in the Buyer all right, title and interest in and to the Purchased Assets.

4.2 <u>Conditions to the Buyer's Obligation to Close</u>. The obligation of the Buyer to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Buyer), on or before the Closing Date, of the following conditions:

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(a) **Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Seller to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby shall have been duly performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

(b) **Seller's Consents and Approvals**. The Seller shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby.

(c) **Buyer's Consents and Approvals**. The Buyer shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including approval (or conditional approval) of the CSE for listing and posting for trading the Share Consideration.

(d) **Seller's Certificate**. The Seller shall have delivered to the Buyer a certificate of the Seller certifying the continued accuracy of the representations and warranties, and performance of covenants of the Seller in this Agreement.

(e) **Transfer Documents**. The Seller shall have executed and delivered the Transfer Documents.

(f) **Intellectual Property Assignment.** The Seller shall have executed and delivered an Intellectual Property assignment in favour of the Buyer, duly executed by the Seller.

(g) **Server Agreement Assignment.** The Seller shall have executed and delivered an assignment agreement pursuant to which the Server Agreements and all rights thereunder are transferred to the Buyer as of the Closing Date.

(h) **Independent Contractor Agreement(s).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Seller shall have terminated all independent contractor agreements relating to the Business with the individuals set forth in <u>Exhibit B</u>, which constitute all independent contractors of the Business, on or prior to the Closing Date and shall have provided evidence of such termination to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Buyer shall have received an independent contractor agreement for , in a form satisfactory to the Buyer and duly executed by the Buyer (or an affiliate) and .

(i) **Release of Encumbrances**. All Encumbrances of the Purchased Assets shall have been released and all registrations as filings related thereto discharged (or undertakings to discharge satisfactory to Buyer shall have been given).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Other**. The Buyer shall have received such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to Buyer, as may be required to give effect to this Agreement.

4.3 <u>Conditions to the Seller's Obligation to Close</u>. The obligation of the Seller to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Seller), on or before the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Buyer to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby prior to the Closing shall have been duly negotiated, performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Officer's Certificate**. The Buyer shall have delivered to the Seller a certificate of an officer of the Buyer certifying the continued accuracy of the representations and warranties, and performance of covenants of the Buyer in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Delivery of Purchase Price**. The Buyer shall have delivered to the Seller the Cash Consideration and the Closing Share Consideration as set out in Section 3.2.

**ARTICLE 5**

**REPRESENTATIONS AND WARRANTIES OF THE SELLER**

The Seller hereby represents and warrants to the Buyer as follows:

5.1 <u>Authority and Enforceability</u>. The Seller is an individual ordinarily resident &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and has the requisite capacity, power and authority (a) to own the Purchased Assets, (b) to execute and deliver this Agreement, (c) to sell, assign, transfer, convey and deliver the Purchased Assets to the Buyer as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

5.2 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Seller and constitutes a valid and legally binding agreement of the Seller enforceable against the Seller in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

5.3 <u>Title</u>. The Seller is the absolute and unconditional owner of, and has good, valid and marketable title to, all of the Purchased Assets free and clear of all mortgages, liens, charges, security interests, pledges, adverse claims, conditional sale or other title retention agreements, restrictions, demands, equities, encumbrances and rights (each, an "**Encumbrance**") of any person, firm, entity, corporation or governmental authority (a "**Person**") of every nature, kind and description whatsoever including without limitation, rights of any Person (other than the Buyer hereunder) to acquire any ownership interest in or right to possess or use any of the Purchased Assets, and the Seller has the exclusive right and full power and authority to sell, assign, transfer, convey and deliver good and marketable title to such assets to the Buyer as herein contemplated. On Closing, Buyer shall receive good and marketable title to the Purchased Assets free and clear of all Encumbrances.

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5.4 <u>Sufficiency of Purchased Assets</u>. Except for the Excluded Assets, the Purchased Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, which are currently owned and used by Seller to operate the Business in the ordinary course.

5.5 <u>Litigation</u>. There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Seller) pending or, to the knowledge of the Seller, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, which involves the possibility of affecting the Purchased Assets including, without limitation, which would restrain or otherwise prevent, in any manner, the Seller from effectually and legally transferring good and marketable title to the Purchased Assets to the Buyer hereunder, or which would cause any Encumbrance to attach to such property or assets or to divest title to such property or assets from the Seller hereunder, and the Seller is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success; however, Seller is aware and has disclosed to Buyer that the US Securities and Exchange Commission has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security. There are no outstanding and unsatisfied judgments, decrees or other judicial order binding upon or enforceable against the Seller which may affect the Purchased Assets or the performance of this Agreement.

5.6 <u>Consents</u>. No governmental, regulatory or third party authorizations, consents, approvals or notices are required to be obtained or given or waiting period is required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Seller.

5.7 <u>Absence of Conflicting Agreements.</u> To the knowledge of the Seller, neither the execution and delivery of this Agreement or any other agreements, documents and instruments to be executed by the Seller in connection with this Agreement or the completion of the transactions contemplated herein nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Seller or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in any material breach of or default under any contract, agreement, indenture, trust or other instrument which is either binding upon or enforceable against the Seller or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) violate any legally protected right of any Person or give to any Person a right or claim against the Buyer or the Purchased Assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in the creation of or imposition of any Encumbrance upon all or any part of the Purchased Assets.

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5.8 <u>Employees and Contractors</u>. Except as set forth in <u>Exhibit B</u>, which independent contractors are to be terminated by the Seller prior to the Closing Date, there are no:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) individuals currently employed whether on a full-time or part-time basis, active or inactive, in connection with the Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) individuals or entities who are otherwise engaged to provide consulting, development, sales, agency, representation or other services for the Business.

5.9 <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Intellectual Property**" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (a) issued patents and patent applications (whether provisional or non-provisional), including design patents, industrial design applications and registrations, divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other governmental authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility models) ("**Patents**"), (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing ("**Trademarks**"), (c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the foregoing ("**Copyrights**"), (d) internet domain names and social media account or user names (including "handles"), whether or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data thereon or relating thereto, whether or not Copyrights, (e) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technical information, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary information and all rights therein ("**Trade Secrets**"), (f) computer programs, operating systems, applications, firmware, and other code, including all source code, object code, screens, user interfaces, report formats, templates, menus, buttons and icons, application programming interfaces, data files, databases, protocols, specifications, and all files, data, materials, manuals, design notes and other items and other documentation related thereto or associated therewith ("**Software**"), (g) rights of publicity, and (h) all other intellectual or industrial property and proprietary rights

"**Business Intellectual Property**" means all Intellectual Property used or held for use by the Seller in the conduct of the Business.

"**Seller Intellectual Property**" means all Intellectual Property owned or purported to be owned by the Seller and which is used by the Seller in the conduct of the Business.

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(b) <u>Exhibit A</u> contains a correct, current, and complete list of: (i) all applied-for or registered Seller Intellectual Property, specifying as to each, as applicable: the title, mark, or design; the record owner and inventor(s), if any; the jurisdiction by or in which it has been issued, registered, or filed; the patent, registration, or application serial number; the issue, registration, or filing date; and the current status, (ii) all unregistered Trademarks included in the Seller Intellectual Property, (iii) all proprietary Software of the Seller, and (iv) all other Business Intellectual Property used or held for use in the Business as currently conducted and as proposed to be conducted.

(c) None of the Seller Intellectual Property is subject to any outstanding order restricting the use or licensing thereof by the Seller. The Seller has not received any claim challenging the validity, use, ownership, enforceability, or effectiveness of any of the Business Intellectual Property and no such claim has been threatened. The Seller does not have any current or future obligation to pay any royalty, license fee, honoraria or other similar consideration to any Person or to obtain any approval or consent for use of any of the Seller Intellectual Property. Each item of Seller Intellectual Property will be owned by the Buyer immediately subsequent to the Closing except for any Seller Intellectual Property that forms part of the Excluded Assets.

(d) Except as disclosed in <u>Exhibit A</u>, the Seller has not entered into any agreements: (i) under which the Seller is a licensor or otherwise grants to any Person any right or interest relating to any Seller Intellectual Property, except for any Seller Intellectual Property that forms part of the Excluded Assets; (ii) under which the Seller is a licensee or otherwise granted any right or interest relating to the Intellectual Property of any Person; and (iii) which otherwise relate to the Seller's ownership or use of Intellectual Property, except for any Seller Intellectual Property that forms part of the Excluded Assets, none of the foregoing including off-the-shelf software agreements.

(e) The Seller exclusively owns all right, title and interest in and to all the Seller Intellectual Property, except for any Seller Intellectual Property that forms part of the Excluded Assets., free and clear of any Encumbrance, and has the right to use and exploit such Seller Intellectual Property without payment to any other Person. The Seller is not bound by, and none of the Seller Intellectual Property is subject to, any agreement that in any way limits or restricts the Seller's ability to use, exploit, assert or enforce the Seller Intellectual Property anywhere in the world. To the knowledge of the Seller, the Seller is using all Intellectual Property owned by third parties with the consent of or license from the rightful owner thereof. All such licenses are in full force and effect, are not subject to any Encumbrance.

(f) The Seller Intellectual Property is sufficient and complete to enable the Seller to carry on the Business in the manner currently operated. To the knowledge of the Seller, there are no issues affecting the Seller's ability to continue to develop, maintain, support and exploit the Business Intellectual Property that would have a material impact on the Business. The Seller Intellectual Property, except for any Seller Intellectual Property that forms part of the Excluded Assets., is fully transferable, alienable, licensable and otherwise distributable by the Seller without restriction and without payment to any Person or governmental authority. The Seller has not sold, transferred, assigned or otherwise disposed of any rights or interests in or to the Seller Intellectual Property, except for any Seller Intellectual Property that forms part of the Excluded Assets.

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(g) Neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result in the loss or impairment of, or require the consent of any other Person in respect of, the Seller's right to own or use any Seller Intellectual Property, or the Seller's right to use any Intellectual Property licensed to the Seller pursuant to such agreement.

(h) To the knowledge of the Seller, there is no claim that any Seller Intellectual Property, including the design, development, use, import, export, manufacture, licensing, sale or other disposition of the Seller Intellectual Property and the exploitation of the functionality of the Seller Intellectual Property, infringes, misappropriates or interferes with the intellectual property rights of any Person, or violate the rights of any Person (including rights to privacy or publicity) and the Seller is not aware of any circumstances which would give rise to such a claim. The Seller has not at any time (i) received any written notice from any Person claiming that the Business Intellectual Property (including any rights thereof), infringes misappropriates or interferes with the Intellectual Property (including any rights thereof) of any Person, violate the rights of any Person (including rights to privacy or publicity) or constitute unfair competition or trade practices under the applicable laws of any jurisdiction (nor does there exist any basis therefor) or (ii) received any offer for a license of intellectual property rights implying that the Business Intellectual Property infringes or misappropriates the intellectual property rights of a third party or violates the rights of any Person (including rights to privacy or publicity).

(i) To knowledge of the Seller, no Person has infringed, misappropriated, diluted or otherwise violated, or is currently infringing, misappropriating, diluting or otherwise violating, any Seller Intellectual Property.

(j) All Seller Intellectual Property was created solely by past and present employees, independent contractors and consultants of the Seller that were bound by written agreements pursuant to which such Persons: (i) agreed and were bound to maintain and protect the confidential information of the Seller; (ii) acknowledge the Seller's exclusive ownership of all Intellectual Property invented, created or developed by such employee, independent contractor or consultant within the scope of their employment or engagement with the Seller (iii) grant to the Seller a valid and irrevocable assignment of any ownership interest such employee, independent contractor or consultant may have in or to such Intellectual Property; and (iv) validly and irrevocably waive, their moral rights therein in favour of the Seller and its successors and assigns. No such Person has expressly excluded works or inventions that are used in the Business from any such assignment. To the knowledge of the Seller, no such Person is in violation of any such assignment or confidential information agreement. However, Seller does not represent that he created or was in any way involved in the creation of the cryptographic platforms on which the Solana Validator, the SUI Validator, the Monad Validator, or the Arch Validators operate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Business Intellectual Property materially performs in accordance with the specifications and user documentation provided to the Buyer and contains all current revisions.

<u>5.10</u> <u>Taxes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no Encumbrances for taxes upon the Purchased Assets and the Seller has paid or has made arrangements for the payment of all taxes which have accrued or are due on or before the Closing Date and which would result in an Encumbrance on the Purchased Assets. The Seller has made or prepared all income and other material tax returns required to be made or prepared by it, and filed all such tax returns required to be filed by it with the appropriate taxing authority, and such tax returns were complete and correct in all material respects. The Seller has paid all income and other material taxes relating to the Business which are due and payable by it. Seller is selling all or substantially all of the property that can be reasonably regarded as being necessary for Buyer to be capable of carrying on Seller's business, other than the portion of the Seller's business represented by the Excluded Assets. The Purchased Assets were not used in, or held by the Seller in respect of, a business carried on in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller is not registered for any Canadian Transfer Taxes.

5.11 <u>Non-Residency Status.</u> The Seller is a non-resident of Canada for the purposes of the *Income Tax Act* (Canada). The Purchased Assets are not "taxable Canada property" for purposes of the *Income Tax Act* (Canada).

5.12 <u>Compliance with Laws</u>. The Business has been operated and is currently operating in material compliance with all applicable laws and regulations as they currently are applied. The Seller has disclosed to the Buyer that the U.S Securities and Exchange Commission may take the position that the Solana token (SOL) is a security which may affect the Business.

5.13 <u>No Broker or Finder</u>. The Seller has not retained, employed or used any broker or finder in connection with the transaction provided for herein.

5.14 <u>Licences</u>. To the knowledge of the Seller, no governmental licences are necessary to operate the Business.

**ARTICLE 6**

**REPRESENTATIONS AND WARRANTIES OF THE BUYER**

The Seller hereby represents and warrants to the Buyer as follows:

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6.1 <u>Duly Incorporated</u>. The Buyer is a corporation duly incorporated and organized in its jurisdiction of incorporation and is a validly subsisting corporation in good standing in its jurisdiction of incorporation with full corporate capacity, power and authority (a) to own the Purchased Assets, (b) to execute and deliver this Agreement, (c) to purchase the Purchased Assets from the Seller as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

6.2 <u>Capitalization</u>. The authorized share capital of the Buyer immediately prior to the date of this Agreement consists of an unlimited number of Common Shares, of which 146,942,090 Common Shares will be issued and outstanding immediately prior to the Closing.

6.3 <u>Corporate Action</u>. All necessary corporate action has been taken by the Buyer so as to validly create, authorize and issue the Common Shares comprising the Share Consideration as fully paid and non-assessable securities in the capital of the Buyer. Upon Closing, the Share Consideration will be validly issued and outstanding as fully paid and non-assessable Common Shares in the capital of the Buyer. All necessary steps and proceedings will have been taken to permit the Share Consideration to be duly and regularly issued and registered in the name of the Seller as fully paid and non-assessable.

6.4 <u>Reporting Issuer</u>. The Buyer is a "reporting issuer" under the securities laws of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan and is in compliance in all material respects with all Applicable Securities Laws.

6.5 <u>Listing of Common Shares</u>. The issued and outstanding Common Shares are listed and posted for trading on the CSE, no order ceasing or suspending trading in any securities of the Buyer or prohibiting the issue, sale and delivery (as applicable) of the Common Shares compromising the Share Consideration or the trading of any of the Buyer's securities has been issued and is in effect as of the date of Closing and no proceedings for such purpose are pending or, to the Buyer's knowledge, threatened.

6.6 <u>No Conflict with Constating Documents</u>. The execution and performance of this Agreement by the Buyer and the execution and delivery of all other agreements, documents and instruments to be executed and delivered by the Buyer pursuant hereto or in connection with the completion of the transactions contemplated herein, will not conflict with or violate any provision of its constating documents and by-laws and have been duly authorized and approved by all necessary and appropriate action of the board of directors and of the stockholders of the Buyer and by any other necessary action on the part of the Buyer to comply with applicable law.

6.7 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Buyer and constitutes a valid and legally binding agreement of the Buyer enforceable against it in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

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6.8 <u>Consents</u>. No governmental or regulatory authorizations, consents, approvals or notices are required to be obtained or given or waiting period is required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Buyer.

6.9 <u>Absence of Conflicting Agreements.</u> Neither the execution and delivery of this Agreement nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Buyer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in any breach of or default under any contract, agreement, indenture, trust or other instrument which is either binding upon or enforceable against the Buyer.

6.10 <u>No Brokers or Finders</u>. Neither the Buyer nor any of its directors, officers, employees, stockholders or agents has retained, employed or used any broker or finder in connection with the transaction provided for herein.

6.11 <u>Legal Proceedings</u>. There are no actions pending or, to the knowledge of the Buyer, threatened against or by Buyer or any affiliate of Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.

**ARTICLE 7**

**COVENANTS**

7.1 <u>Conduct of Business before Closing.</u> From the date hereof until the Closing Date, except as otherwise provided in this Agreement or consented to in writing by the Buyer, the Seller shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conduct the Business in the ordinary course of business consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to maintain, preserve and protect the Purchased Assets and Business, including its income, goodwill and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) maintain the Purchased Assets owned, operated or used by the Seller in the same condition as they were on the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) comply in all material respects with all applicable laws.

7.2 <u>Trade Names and Dissolution</u>. In connection with the Closing, the Seller shall discontinue further use of the name "Cogent", except: (a) where legally required to identify the Seller until its name has been changed to another name, and (b) in connection with Cogent Cogs. Except as qualified by this Section 7.2, the Buyer, or an affiliate of the Buyer, shall have the exclusive right after the Closing Date to use the trade name "Cogent".

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7.3 <u>Confidentiality</u>. Neither the Seller nor any corporation controlled by or under common control with the Seller shall (a) use for any purpose, (b) disclose to any Person except the Buyer, or (c) keep or make copies of documents, tapes, discs or programs containing, any confidential information relating exclusively to the Business. For purposes hereof, "confidential information" shall mean and include, without limitation, the Purchased Assets described in subsection 1.1 above, and all other information concerning the processes, apparatus, equipment, products, purchasing, marketing and distribution methods used by the Seller exclusively in operating the Business which is not publicly known. The Seller is authorized to retain copies of documents needed for product liability and tax purposes and other records needed to assist the Buyer in using the Purchased Assets.

7.4 <u>Employees</u>. The Seller shall be responsible for all wages, bonuses, vacations, sick leave, vacation pay and severance pay and other remuneration benefits, earned or accrue and all other liabilities (collectively "**Wages**") related to all of its employees/contractors or former employees/contractors, and the Buyer shall not have any obligation whatsoever for Wages, or similar payment to the employees/contractors or former employees/contractors, prior to and after the Closing Date, whether or not paid or payable before or after Closing.

7.5 <u>Access</u>. The Seller shall provide the Buyer with all required information for Buyer to have unrestricted access to the accounts associated with each of its contracts, including, but not limited to the username and password to each such account associated with such contracts.

7.6 <u>Consents and Waivers</u>. The Seller shall, at its own expense, use all commercially reasonable efforts to obtain, prior to the Closing, all consents or waivers of third parties required to consummate the transactions contemplated by this Agreement.

7.7 <u>Equitable Relief for Violations</u>. The Seller agrees that the provisions and restrictions contained in this Article 7 are necessary to protect the legitimate continuing interests of the Buyer as a result of its acquisition of the Business, and that any violation or breach of these provisions will result in irreparable injury to the Buyer for which a remedy at law would be inadequate and that, in addition to any relief at law which may be available to the Buyer for such violation or breach, and regardless of any other provision contained in this Agreement, the Buyer shall be entitled to such injunctive and other equitable relief as a court may grant after considering the intent of this Agreement.

7.8 <u>Public Announcements</u>. Unless otherwise required by applicable law or stock exchange requirements (including Applicable Securities Laws), prior to Closing, the Buyer and the Seller shall not make, and shall use reasonable efforts to prohibit their other affiliates from making, any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the Buyer and the Seller (which consent shall not be unreasonably withheld or delayed by any party). Prior to Closing, the Buyer shall consult with the Seller prior to issuing any press releases or otherwise making public statements with respect to this Agreement or the transactions contemplated by this Agreement that may be required by Applicable Securities Laws or stock exchange rules, and shall provide the Seller with a reasonable period of time to review and comment on all such press releases or statements prior to the release thereof. To the extent that any such press release or public statement is required by applicable laws or by a governmental authority, the press release or public announcement shall be issued or made after consultation with the other party and after taking into account the other party's comments. If such advance consultation is not reasonably practicable or legally permitted, to the extent permitted by applicable law, the disclosing party shall provide the other party with a copy of any written disclosure made by such disclosing party as soon as practicable thereafter.

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**ARTICLE 8**

**INDEMNIFICATION**

8.1 <u>By the Seller</u>. Subject to the other terms and conditions of this Article 8, the Seller hereby agrees to indemnify and defend the Buyer, and its directors, officers, employees and controlled and controlling persons (hereinafter the "**Buyer's Affiliates**"), and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all (i) liabilities; (ii) losses, damages, judgments, awards, settlements, costs and expenses; and (iii) all demands, claims, suits, actions, costs of investigation, causes of action, proceedings and assessments, whether or not ultimately determined to be valid (collectively, a "**Loss**") incurred or sustained by, or imposed upon, the Buyer's Affiliates based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement, the Transfer Documents, or in any certificate or instrument delivered by or on behalf of Buyer pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of Seller's conduct of the Excluded Liabilities following the Closing

8.2 <u>By the Buyer</u>. Subject to the other terms and conditions of this Article 8, Buyer shall indemnify and defend each of the Seller and its affiliates and their respective Representatives (collectively, the "**Seller Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement, the Transfer Documents, or in any certificate or instrument delivered by or on behalf of Buyer pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of Buyer's conduct of the Purchased Assets following the Closing.

8.3 <u>Indemnification Procedures</u>. The obligations of either party to indemnify the other under this Article 8 shall be subject to the following terms and conditions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice and Defence.** The party or parties to be indemnified (the "**Indemnified Party**") will give the party from which indemnification is sought (the "**Indemnifying Party**") prompt written notice of any claim, proceeding or other matter (as used in this Article 8, a "**Claim**"), and the Indemnifying Party will undertake the defence by representatives chosen by the Indemnifying Party. Failure to give prompt notice will only affect the Indemnifying Party's duty to the extent the Indemnifying Party is prejudiced. So long as the Indemnifying Party is defending the Claim actively and in good faith, the Indemnified Party shall not settle such Claim. The Indemnified Party shall make available all materials required by the Indemnifying Party or its representatives in defending such Claim, and the Indemnified Party shall give reasonable cooperation in such defence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Failure to Defend**. If the Indemnifying Party fails to defend a Claim actively and in good faith in a reasonable time after receiving notice or if the Indemnifying Party requests the Indemnified Party to undertake a defence of the Claim, the Indemnified Party will (upon further notice) have the right to undertake the defence or settlement of the Claim or consent to the entry of a judgment with respect to the Claim, and the Indemnifying Party shall thereafter have no right to challenge the Indemnified Party's action under this paragraph.

8.4 <u>Payment</u>. The Indemnifying Party shall promptly pay the Indemnified Party any amount due under this Article 8, which payment may be accomplished in whole or in part, at the Indemnified Party's option, by the Indemnified Party setting off any amount owed to the Indemnifying Party by the Indemnified Party.

8.5 <u>Limitations on Indemnification</u>. Notwithstanding anything else in this Agreement to the contrary neither party shall have any liability (for indemnification or otherwise) until the total of all losses, damages, liabilities, costs and expenses resulting from Claims exceeds $5,000 and then the amount for any such Claims shall go back to dollar one. Notwithstanding the foregoing, the maximum aggregate amount of liability that one party shall have to the other party shall not exceed the Purchase Price.

**ARTICLE 9**

**MISCELLANEOUS**

9.1 <u>Survival of Representations and Warranties</u>. Subject to any limitation periods set out under applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all representations and warranties made by any party in this Agreement or in any Transfer Document, agreement or instrument shall survive the Closing and continue for a period of two (2) years from the Closing Date. After such period, no party shall have further liability hereunder with respect to the relevant representations and warranties except with respect to claims properly made within such period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all covenants and agreements made by any party in this Agreement or in any Transfer Document shall survive the Closing and continue without time limit.

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9.2 <u>Assignment: Parties in Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Assignment**. None of the parties is permitted to assign its respective rights and obligations hereunder without the prior written consent of the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Parties in Interest**. This agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto but all obligations shall be guaranteed by the parties hereto. Nothing contained herein shall be deemed to confer upon any other person any right or remedy under or by reason of this agreement.

9.3 <u>Governing Law: Jurisdiction</u>. This Agreement shall be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each party to this Agreement irrevocably attorns and submits to the exclusive jurisdiction of the Courts of the City of Toronto with respect to any matter arising under or relating to this Agreement and waives any objections to the assertion or exercise of jurisdiction by such courts, including any objection based on *forum non conveniens*.

9.4 <u>Amendment and Modification</u>. This Agreement may be amended, modified or supplemented only by written agreement of the Buyer and the Seller.

9.5 <u>Time of the Essence</u>. Time is of the essence of each provision of this Agreement.

9.6 <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

9.7 <u>Entire Agreement</u>. This instrument embodies the entire agreement between the parties hereto with respect to the transaction contemplated herein, superseding all prior agreements, understandings, negotiations and correspondence between them on the subject hereof including, for greater certainty, the term sheet entered into between the Buyer and the Seller, dated October 21, 2024, and there are no conditions to this Agreement which are not set forth herein.

9.8 <u>Notices</u>. All notices, consents, requests, reports, demands or other communications hereunder (collectively, "**Notices**") shall be in writing and may be given personally, by registered or certified mail or email transmission,

if to the Buyer, addressed to it at:

Sol Strategies Inc.

217 Queen St W #401

Toronto, ON M5V 0R2

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Attention: Leah Wald

E-mail: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

with a copy to:

Fasken Martineau DuMoulin LLP <br>333 Bay Street, Suite 2400

Bay Adelaide Centre, Box 20 <br>Toronto, ON M5H 2T6<br>

Attention: Daniel Fuke

E-mail: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>

if to the Seller, addressed to:

Ben Hawkins<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Email: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>

<br>with a copy to:

Olson Partners Law

Attention: Ephraim Olson <br>E-mail: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

or to such other address or to such other person as the addressee party shall have last designated by notice to the other party. Notices given by registered or certified mail shall be deemed to have been given three days after being deposited in the mails with postage prepaid. All other notices shall be deemed to have been given when received.

Each of Buyer and Seller agrees to promptly notify the other party of any change in its electronic mail address, and that failure to do so shall not affect the foregoing.

9.9 <u>Counterparts</u>. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.

9.10 <u>Electronic Execution</u>. To evidence the fact that it has executed this Agreement, a party may send a copy of its executed counterpart to the other party by facsimile transmission or via e-mail in PDF format. That party shall be deemed to have executed this Agreement on the date it sent such facsimile transmission or e-mail. In such event, such party shall forthwith deliver to the other party the counterpart of this Agreement executed by such party.

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9.11 <u>Expenses</u>. Each party to this Agreement will pay all costs and expenses attributable to the performance of and compliance with all agreements and conditions contained in this Agreement to be performed or complied with by such party.

9.12 <u>Headings</u>. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

***[Signature page follows]***

------

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| By: | *(signed) "Leah Wald"* |
|  | Name: Leah Wald |
|  | Title: Chief Executive Officer |
| **BEN HAWKINS** | **BEN HAWKINS** |

---

------

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| By: |  |
|  | Name: Leah Wald |
|  | Title: Chief Executive Officer |
| *(signed) "Ben Hawkins"* | *(signed) "Ben Hawkins"* |
| **BEN HAWKINS** | **BEN HAWKINS** |

---

***[Signature Page - Sol Strategies Inc. APA]***

------

## Exhibit 99.47

------

**Sol Strategies Announces Letter of Intent to Acquire Validators**

Toronto, Ontario--(Newsfile Corp. - December 4, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded, Canadian holding company investing in the Solana blockchain and ecosystem, today announced that it has entered into a letter of intent dated December 2, 2024 to acquire three blockchain validators and certain assets related to the blockchain validators (the "Proposed Transaction") from an arm's-length party (the "Vendor").

The Proposed Transaction would increase the amount of SOL delegated to Sol Strategies-owned Solana validators to 1,493, 3784 SOL (CAD $470,397,586), an increase of 554,714 SOL (CAD $174,728,786), enabling Sol Strategies to earn validation commission on this delegation.

The consideration payable to the Vendor pursuant to the Proposed Transaction is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) USD $750,000 in cash (or SOL or USDC, at the Company's option), payable on closing of the Proposed Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) USD $750,000 of Sol Strategies common shares ("Common Shares"), issued at closing of the Proposed Transaction based on the closing price of the Common Shares on the date of signing of the definitive agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) USD $5,000,000 of Common Shares issuable over a period of three years from the date of closing of the Proposed Transaction, subject to performance targets.

Completion of the Proposed Transaction is subject to customary conditions including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company and the Vendor entering into a definitive agreement;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt of all required consents; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) regulatory approval, including the Canadian Securities Exchange.

There are no finder's fees payable in connection with the Proposed Transaction.

The expected yearly net income from the new Solana validator operation is currently projected at $2,600,000 CAD, showcasing the potential of the validator's economic contributions to Sol Strategies' business model.

The Canadian dollar (CAD) amounts in this news release are based on cryptocurrency price rates from Coinbase on December 3, 2024.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) expectations regarding the characteristics, value drivers, and anticipated benefits of the engagement, (ii) expectations concerning the Company's business plans and operations, (iii) expectations regarding the Company entering into a definitive agreement for the Proposed Transaction and the timing and closings thereof, and (iv) expectations regarding the Company's future development opportunities in connection with the Proposed Transaction. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Proposed Transaction and its intended impact on the Company, the Company's future investing plans, and staking plans. There is no assurance that the Proposed Transaction will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

------

**SOURCE:** Sol Strategies

**Media contact**: <u>solstrategies@mgroupsc.com</u>

![](exhibit99-47x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/232403</u>

------

## Exhibit 99.48

------

**Sol Strategies Applies For Listing on Nasdaq Exchange**

Toronto, Ontario--(Newsfile Corp. - December 5, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem, today submitted its application for listing on the Nasdaq Stock Market ("Nasdaq"). This marks a critical milestone in the Company's strategic plan to enhance institutional investor access and expand its market presence.

The Company's listing application is subject to review and approval by Nasdaq's listing qualifications department for compliance with all Nasdaq Capital Market standards, as well as any other relevant regulatory approvals. The Company must also file a registration statement with the Securities and Exchange Commission ("SEC") and have it declared effective before being listed on Nasdaq.

**Leah Wald, CEO of Sol Strategies, commented:** "Submitting our Nasdaq application represents a pivotal step in our journey to bridge institutional investment with the boundless potential of the Solana ecosystem. This milestone positions us to drive transformative growth and deliver sustained value to our shareholders as we bring our strategic vision to life."

While advancing its uplisting plans, the Company's common stock will continue trading on the OTC market under the ticker symbol "CYFRF." and the Company will continue to maintain the listing of its common stock on the Canadian Securities Exchange under ticker symbol "HODL". Sol Strategies remains committed to maximizing shareholder value and achieving a Nasdaq listing as a key component of its growth strategy.

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker <u>"</u>HODL<u>"</u> and on the OTC market under the ticker <u>"</u>CYFRF<u>"</u>.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's Nasdaq application and the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Nasdaq listing and its intended impact on the Company. There is no assurance that the Nasdaq listing will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact**: <u>solstrategies@mgroupsc.com</u>

<u>![](exhibit99-48x001.jpg)<br></u>

<br> To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/232555</u>

------

## Exhibit 99.49

------

**Sol Strategies Sells Bitcoin to Increase Solana Holdings**

**Exercises Option At Substantially Below Market**

Toronto, Ontario--(Newsfile Corp. - December 11, 2024) - Sol Strategies Inc., (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or, the "Company"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem, today announced the continuation of the strategic reallocation of assets to increase its Solana holdings.

**Solana Holdings**

* **Option Exercise:** The Company recently acquired 8,000 SOL through the exercise of call options with an exercise price of USD $180 per SOL, for a total cost of USD $1,520,000 (CAD $2,131,344).

* **Market Purchases and Sales:** Since October 29, 2024, the Company purchased 5,852.93 SOL for a total cost of USD$1,386,838 (CAD $1,966,267) and sold 4,080 SOL for net proceeds of US$1,004,102 (CAD $1,402,530) which was used to pay the cash portion of the Cogent Crypto acquisition that closed on November 25, 2024.

* **Solana Investments:** Sol Strategies increased its SOL holdings to 142,031.09 SOL (CAD $42,949,817) an increase of 11,905.87 SOL from 130,125.22 SOL (CAD $32,202,081) as of October 29, 2024, the Company's last press release disclosing its SOL holdings.

* **Delegated Stake:** The total delegated stake to the Company's validators reached 948,242.86 SOL, including 142,031.09 SOL delegated by the Company.

* **Bitcoin Holdings:** Following a strategic sale of 19.7975 BTC for CAD $2,718,126 in gross proceeds, the Company now holds 3.168BTC, valued at CAD $436,333.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ On December 6, 2024, the Company sold 19.7975 BTC for gross proceeds of CAD $2,718,126, which was used to exercise the options to acquire SOL, as stated in this release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ As of October 29, 2024, the Company's last reporting period, Sol Strategies held 23.168 BTC (CAD $3,191,181).

*\*The above Canadian dollar (CAD) amount are based on prices and foreign exchange rates quoted by Coinbase*

*(<u>https://www.coinbase.com/converter/sol/cad</u> and <u>https://www.coinbase.com/converter/btc/cad</u>) and using*

*<u>https://www.google.com/finance/quote/USD-CAD</u> as at 6:25 pm ET on December 10, 2024.*

**Leah Wald, CEO of Sol Strategies commented**: "This reallocation highlights our strategic focus on Solana as a cornerstone of our investment strategy. By converting Bitcoin into additional Solana holdings, we are reinforcing our commitment to the ecosystem's growth and its potential to deliver long-term value for our shareholders."

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's Nasdaq application, the Company's letter of intent to acquire three additional validators, the appointment of a new strategic advisor, and the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Nasdaq listing and completion of the transactions contemplated by the letter of intent to acquire three additional validators, and their intended impact on the Company. There is no assurance that the Nasdaq listing or the validator acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** <u>solstrategies@mgroupsc.com</u>

------

**SOURCE:** Sol Strategies Inc.

![](exhibit99-49x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/233355</u>

------

## Exhibit 99.50

------

**Sol Strategies Highlights H2 2024** **Achievements**

**Reports over CAD $48M in liquidity following business strategy execution**

Toronto, Ontario--(Newsfile Corp. - December 12, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or, the "Company"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem, today announced an update to the Company's holdings along with key financial and operational highlights for the second half of 2024. The results underscore the Company's commitment to driving value for shareholders through disciplined asset management, validator operations, and strategic expansion.

**Operational Milestones**

Under the leadership of Chief Executive Officer, Leah Wald, Sol Strategies has successfully realigned its strategy, driving a remarkable 2,336% increase in stock performance and propelling the company's market cap from CAD $17M to an impressive CAD $394.86M since her appointment as CEO in July. This extraordinary growth solidifies Sol Strategies as a pioneering force in the blockchain sector and a key player in driving the adoption of Solana's ecosystem at scale.

Recent operational milestones underscore Sol Strategies' significant growth in 2024. The acquisition of four blockchain validators from Cogent Crypto has solidified the company's position within the Solana ecosystem, enhancing operational capabilities and revenue potential. Additionally, as announced in a press release on December 4, 2024, the Company has signed a Letter of Intent to acquire three additional blockchain validators, a strategic move designed to further diversify revenue streams and enhance network participation.

Demonstrating its growth trajectory, Sol Strategies has applied to list on the Nasdaq Stock Market, reflecting its commitment to meeting global capital market standards and attracting a diverse investor base.

*\*Stock data sourced from Yahoo Finance Canada: <u>https://ca.finance.yahoo.com/quote/HODL.CN/</u> . Calculations use the closing price from July 8,*

*2024 (prior to Leah Wald assuming the role of CEO on July 9), and the closing price from December 11, 2024.*

**Strategy Overview**

Since rebranding to focus on Solana in September, Sol Strategies is focused on purchasing and staking SOL and operating validators on the Solana blockchain. This strategic direction allows investors to gain exposure to the growth and innovation within the Solana ecosystem without the complexities associated with directly managing cryptocurrency assets. By pursuing this approach, Sol Strategies aims to bridge the gap between public markets and decentralized finance. The Company is committed to providing a compliant and accessible platform that enables shareholders to participate in the advancement of blockchain technology and benefit from Solana's transformative potential.

**Investment Portfolio Overview**

* **Solana Investments:** Sol Strategies increased its Solana holdings to 142,031.09 SOL, as of December 11, 2024, the Company's last press release disclosing its SOL holdings. Current holdings are valued at CAD $46,011,897.

* **Delegated Stake:** The total delegated stake to the Company's validators reached 948,242.86 SOL, valued at CAD $307,839,638. This includes 142,031.09 SOL delegated by the Company, as of December 11, 2024, the Company's last press release disclosing its SOL holdings.

------

* **Bitcoin Holdings:** the Company now holds 3.168 BTC, as of December 11, 2024, the Company's last press release disclosing its SOL holdings. Current holdings are valued at CAD $454,908.

* **Cash Position:** The Company maintains a cash position of CAD $1,600,000.

* **Other Investments:** Sol Strategies holds additional private equity and venture capital investments valued at approximately CAD $442,000.

* **Liabilities:** As of the date hereof, the Company has net liabilities of approximately CAD $2,857,571.

*\*The above Canadian dollar (CAD) amount are based on prices and foreign exchange rates quoted by Coinbase <br>(<u>https://www.coinbase.com/converter/sol/</u> cad and https://www.coinbase.com/converter/btc/cad) and using<br> <u>https://www.google.com/finance/quote/USD-CAD</u> as at 3:49 pm ET on December 11, 2024.*

**Leah Wald, CEO of Sol Strategies, commented:** "The progress we have made over the past six months is a testament to the dedication and expertise of our entire team. Together, we have laid a strong foundation for sustainable growth as we look toward 2025. Sol Strategies continues to build its presence within the Solana ecosystem, thoughtfully accumulating valuable assets and strengthening our operational capabilities. By maintaining a disciplined and strategic approach, we are well-positioned to navigate the opportunities ahead and create long-term value for our shareholders."

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's Nasdaq application, the Company's letter of intent to acquire three additional validators, the appointment of a new strategic advisor, and the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Nasdaq listing and completion of the transactions contemplated by the letter of intent to acquire three additional validators, and their intended impact on the Company. There is no assurance that the Nasdaq listing or the validator acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media contact:** <u>solstrategies@mgroupsc.com</u>

**SOURCE:** Sol Strategies Inc.<br>

![](exhibit99-50x001.jpg)<br>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/233459</u>

------

## Exhibit 99.51

------

**Sol Strategies Signs Definitive Agreement for the Acquisition of Validators and Leadership from Orangefin Ventures**

**Sol Strategies Strengthens Its Staking Infrastructure with Orangefin Acquisition**

Toronto, Ontario--(Newsfile Corp. - December 20, 2024) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem, today announced it has entered into a definitive agreement dated December 20, 2024 to acquire three validators (the "Acquisition") from <u>Orangefin Ventures</u>, a leader in high-performance blockchain infrastructure solutions. In addition to the validators, Max Kaplan, founder of Orangefin Ventures, will join as the Company's new Head of Staking.

The acquired validators operate on the Solana, Solana Testnet, and Arch Testnet networks (the "Validators"). Upon completion of the Acquisition, Sol Strategies will have increased its staked SOL to 1,505,145 SOL (CAD $406,852,077) across its validator operations, of which Sol owns 142,801 SOL, at an approximate average of 9% annual percentage yield ("APY"). Post-acquisition, Sol Strategies will manage the staked SOL across its validators as follows:

* 193,790 SOL (CAD $52,382,903) on Sol Strategies' proprietary validator, of which 142,684 SOL is delegated by the Company.

* 677,136 SOL (CAD $183,034,982) on Sol Strategies' recently acquired Cogent Crypto validator.

* 634,219 SOL (CAD $171,434,192) on Sol Strategies' recently acquired Orangefin Ventures' Solana validator.

This combined portfolio enhances Sol Strategies' revenue streams, delivering predictable staking income and further solidifying its position as a leading infrastructure provider in the Solana ecosystem.

*\*The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase*

*(<u>https://www.coinbase.com/converter/sol/cad</u> and <u>https://www.coinbase.com/converter/btc/cad</u>) and using*

*<u>https://www.google.com/finance/quote/USD-CAD</u> as at 6:00 pm ET on December 19, 2024.*

The Acquisition will be completed for a purchase price of USD$6,500,000 (approximately CAD $9.4 million), payable through a combination of cash and common shares of Sol Strategies. Pursuant to the terms of the Agreement, Sol Strategies will acquire a 100% ownership interest in the Validators and all ancillary rights and assets required for the management of the Validators (the "Purchased Assets"). The Agreement also provides that in consideration for the Purchased Assets, the Company will (i) pay USD$750,000 (approximately CAD $1.1 million) in cash or through stablecoin on closing of the Acquisition ("Closing"), (ii) issue USD$750,000 in common shares of Sol Strategies (each, a "Common Shares") on Closing (valued at a price of CAD $2.14 per Common Share for a total of 503,621 Common Shares), and (iii) issue US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance) in six equal tranches every six months over a period of three years from Closing. The Acquisition also includes performance-based milestones that align the interests of the Orangefin Ventures team with those of Sol Strategies and its shareholders.

In connection with the Acquisition terms, Max Kaplan joined Sol Strategies as the new Head of Staking. Mr. Kaplan is the former Senior Director of Engineering at Kraken and brings a proven track record in scaling high-performance systems, optimizing operations, and driving innovation in cryptocurrency infrastructure. His expertise in DevOps, blockchain, and high-frequency trading will be pivotal in advancing Sol Strategies' staking operations and maximizing the potential of its expanded validator network.

------

"This Acquisition marks a significant step forward in cementing our leadership in blockchain infrastructure and validator operations. Orangefin Ventures' proven reliability, exceptional performance, and scale bring immediate value to our staking operations," **said Leah Wald, CEO of Sol Strategies**.

**Max Kaplan, newly appointed Head of Staking at Sol Strategies added:** "I'm thrilled to be joining Sol Strategies to build on our shared vision of advancing Solana and blockchain infrastructure. Bringing Orangefin Venture's technology into Sol Strategies' business is an opportunity I am extremely excited and optimistic about. I look forward to continuing to innovate and build high value products for participants and shareholders alike. "

Closing is expected in Q1 2025, subject to customary closing conditions, including regulatory approvals.

*\*The staking yield and SOL amounts referenced in this release are publicly available and can be reviewed on the Stakewiz platform under Sol*

*Strategies' validator profiles: <u>https://stakewiz.com/validator/punK4RDD3pFbcum79ACHatYPLLE1hr5UNnQVUGNfeyP</u>*

*Orangefin Ventures Validator: <u>https://stakewiz.com/validator/oRAnGeU5h8h2UkvbfnE5cjXnnAa4rBoaxmS4kbFymSe</u> , and Cogent Cryptos*

*Validator: <u>https://stakewiz.com/validator/CogentC52e7kktFfWHwsqSmr8LiS1yAtfqhHcftCPcBJ</u>*

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) is a publicly traded Canadian company actively investing in and providing infrastructure for the Solana blockchain ecosystem. The Company focuses on validator operations, staking rewards, and strategic investments in Solana-based projects, enabling shareholders to participate in the decentralized finance and blockchain infrastructure landscape. For more information, visit <u>www.solstrategies.io</u>.

**About Orangefin Ventures**

Orangefin Ventures is a blockchain infrastructure leader specializing in validator operations and decentralized network solutions. The company's cutting-edge technology, ISO 27001 certification, and reliable performance have made it a trusted name in the Solana ecosystem. For more information, visit <u>www.orangefin.ventures</u>

A copy of this news release and all related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition and the appointment of a new Head of Staking, (iii) expectations regarding the timing of Closing and the Company's future development opportunities in connection with the Acquisition, and (iv) the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Nasdaq listing and completion of the transactions contemplated by the letter of intent to acquire three additional validators, and their intended impact on the Company. There is no assurance that the Nasdaq listing or the validator acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488

**Media contact:** <u>solstrategies@mgroupsc.com</u>

**SOURCE:** Sol Strategies Inc.

![](exhibit99-51x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/234811</u>

------

## Exhibit 99.52

------

**Sol Strategies Announces Completion of Orangefin Ventures' Validator Acquisition**

Toronto, Ontario--(Newsfile Corp. - December 31, 2024) - **Sol Strategies Ltd.** (CSE: HODL) ("Sol Strategies" or the "Company"), a publicly traded Canadian holding company focused on investments within the Solana blockchain and ecosystem, today announced the completion of its definitive agreement to acquire three blockchain validators and certain assets related to the validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services (the "Acquisition") as previously disclosed in the Company's December 20, 2024 <u>news release</u>.

The integration of Orangefin's validator network and operational expertise is expected to deliver immediate value to Sol Strategies by enhancing its validator capacity and driving sustainable staking revenue growth. The Company plans to maintain Orangefin's high operational standards while leveraging its resources to expand its footprint within the Solana ecosystem further.

The acquired validators operate on the Solana, Solana Testnet, and Arch Testnet networks. Post closing of the Acquisition, Sol Strategies will have increased its staked SOL to 1,505,145 SOL (CAD $440,249,107) across its validator operations, of which Sol Strategies owns 142,801 SOL. Post-Acquisition, Sol Strategies will manage the staked SOL across its validators as follows:

* 259,033 SOL (CAD $72,672,718) on Sol Strategies' proprietary validator, of which 142,684 SOL is delegated by the Company.

* 677,879 SOL (CAD $190,181,597) on Sol Strategies' recently acquired Cogent Crypto validator.

* 632,302 SOL (CAD $177,394,792) on Sol Strategies' recently acquired Orangefin Ventures' Solana validator.

This combined portfolio enhances Sol Strategies' revenue streams, delivering predictable staking income and further solidifying its position as a leading infrastructure provider in the Solana ecosystem.

*\*The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase (<u>https://www.coinbase.com/converter/sol/cad</u> and <u>www.stakewiz.com</u> as at 3:29 pm ET on December 30, 2024.*

Pursuant to the terms of the definitive agreement, Sol Strategies has acquired a 100% ownership interest in the validators and all ancillary rights and assets required for the management of the validators (the "Purchased Assets"). In consideration for the Purchased Assets, the Company (i) has paid USDC$750,000 on closing of the Acquisition, (ii) has issued USD$750,000 in common shares of Sol Strategies (each, a "Common Share") (valued at a price of CAD $2.14 per Common Share for a total of 503,621 Common Shares) on closing of the Acquisition, and (iii) will issue US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance) in six equal tranches every six months over a period of three years from the date hereof. The Acquisition also includes performance-based milestones that align the interests of the Orangefin team with those of Sol Strategies and its shareholders.

In connection with the Acquisition terms, Max Kaplan joined Sol Strategies as the new Head of Staking. Mr. Kaplan is the former Senior Director of Engineering at Kraken and brings a proven track record in scaling high-performance systems, optimizing operations, and driving innovation in cryptocurrency infrastructure. His expertise in DevOps, blockchain, and high-frequency trading will be pivotal in advancing Sol Strategies' staking operations and maximizing the potential of its expanded validator network.

Effective immediately, Sol Strategies has assumed full operational control of Orangefin's validators, following the approval of the Canadian Securities Exchange and the announcement of today's completed Acquisition.

------

**Leah Wald**, CEO of Sol Strategies, stated:

*"The completion of the Orangefin acquisition represents a transformative moment for Sol Strategies. By integrating Orangefin's assets and leadership, we are not only expanding our footprint within the Solana ecosystem but also taking a significant step forward in our strategy to scale validator operations and unlock the full potential of decentralized finance infrastructure. We're excited about the synergies this acquisition creates and look forward to the value it will bring to our shareholders."*

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) is a publicly traded Canadian company actively investing in and providing infrastructure for the Solana blockchain ecosystem. The Company focuses on validator operations, staking rewards, and strategic investments in Solana-based projects, enabling shareholders to participate in the decentralized finance and blockchain infrastructure landscape. For more information, visit <u>www.solstrategies.io</u>.

A copy of this news release and all related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Orangefin Ventures**

Orangefin Ventures is a blockchain infrastructure leader specializing in validator operations and decentralized network solutions. The company's cutting-edge technology, ISO 27001 certification, and reliable performance have made it a trusted name in the Solana ecosystem. For more information, visit <u>www.orangefin.ventures</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition and the appointment of a new Head of Staking, (iii) expectations regarding the Company's future development opportunities in connection with the Acquisition, and (iv) the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding completion of the Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <u>doug@solstrategies.io</u>

Tel: 416-480-2488

**SOURCE**: Sol Strategies Inc.

![](exhibit99-52x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/235645</u>

------

## Exhibit 99.53

------

**Sol Strategies Announces Completion of Orangefin Ventures' Validator Acquisition**

**Toronto, ON - December 31, 2024** - **Sol Strategies Ltd.** (CSE: HODL) ("Sol Strategies" or the "Company"), a publicly traded Canadian holding company focused on investments within the Solana blockchain and ecosystem, today announced the completion of its definitive agreement to acquire three blockchain validators and certain assets related to the validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services (the "Acquisition") as previously disclosed in the Company's December 20, 2024 <u>news release</u>.

The integration of Orangefin's validator network and operational expertise is expected to deliver immediate value to Sol Strategies by enhancing its validator capacity and driving sustainable staking revenue growth. The Company plans to maintain Orangefin's high operational standards while leveraging its resources to expand its footprint within the Solana ecosystem further.

The acquired validators operate on the Solana, Solana Testnet, and Arch Testnet networks. Post closing of the Acquisition, Sol Strategies will have increased its staked SOL to 1,505,145 SOL (CAD $440,249,107) across its validator operations, of which Sol Strategies owns 142,801 SOL. Post-Acquisition, Sol Strategies will manage the staked SOL across its validators as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 259,033 SOL (CAD $72,672,718) on Sol Strategies' proprietary validator, of which 142,684 SOL is delegated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 677,879 SOL (CAD $190,181,597) on Sol Strategies' recently acquired Cogent Crypto validator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 632,302 SOL (CAD $177,394,792) on Sol Strategies' recently acquired Orangefin Ventures' Solana validator.

This combined portfolio enhances Sol Strategies' revenue streams, delivering predictable staking income and further solidifying its position as a leading infrastructure provider in the Solana ecosystem.

*\*The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase (https://www.coinbase.com/converter/sol/cad and www.stakewiz.com as at 3:29 pm ET on December 30, 2024.*

Pursuant to the terms of the definitive agreement, Sol Strategies has acquired a 100% ownership interest in the validators and all ancillary rights and assets required for the management of the validators (the "Purchased Assets"). In consideration for the Purchased Assets, the Company (i) has paid USDC$750,000 on closing of the Acquisition, (ii) has issued USD$750,000 in common shares of Sol Strategies (each, a "Common Share") (valued at a price of CAD $2.14 per Common Share for a total of 503,621 Common Shares) on closing of the Acquisition, and (iii) will issue US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance) in six equal tranches every six months over a period of three years from the date hereof. The Acquisition also includes performance-based milestones that align the interests of the Orangefin team with those of Sol Strategies and its shareholders.

------

In connection with the Acquisition terms, Max Kaplan joined Sol Strategies as the new Head of Staking. Mr. Kaplan is the former Senior Director of Engineering at Kraken and brings a proven track record in scaling high-performance systems, optimizing operations, and driving innovation in cryptocurrency infrastructure. His expertise in DevOps, blockchain, and high-frequency trading will be pivotal in advancing Sol Strategies' staking operations and maximizing the potential of its expanded validator network.

Effective immediately, Sol Strategies has assumed full operational control of Orangefin's validators, following the approval of the Canadian Securities Exchange and the announcement of today's completed Acquisition.

**Leah Wald**, CEO of Sol Strategies, stated:

*"The completion of the Orangefin acquisition represents a transformative moment for Sol Strategies. By integrating Orangefin's assets and leadership, we are not only expanding our footprint within the Solana ecosystem but also taking a significant step forward in our strategy to scale validator operations and unlock the full potential of decentralized finance infrastructure. We're excited about the synergies this acquisition creates and look forward to the value it will bring to our shareholders."*

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) is a publicly traded Canadian company actively investing in and providing infrastructure for the Solana blockchain ecosystem. The Company focuses on validator operations, staking rewards, and strategic investments in Solana-based projects, enabling shareholders to participate in the decentralized finance and blockchain infrastructure landscape. For more information, visit www.solstrategies.io.

A copy of this news release and all related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at www.sedarplus.ca.

**About Orangefin Ventures**

Orangefin Ventures is a blockchain infrastructure leader specializing in validator operations and decentralized network solutions. The company's cutting-edge technology, ISO 27001 certification, and reliable performance have made it a trusted name in the Solana ecosystem. For more information, visit www.orangefin.ventures

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition and the appointment of a new Head of Staking, (iii) expectations regarding the Company's future development opportunities in connection with the Acquisition, and (iv) the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding completion of the Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer doug@solstrategies.io

Tel: 416-480-2488

**SOURCE**: Sol Strategies Inc.

------

## Exhibit 99.54

------

***Execution Version***

**ASSET PURCHASE AGREEMENT**

This Agreement is entered into as of the 20<sup>th</sup> day of December, 2024

BETWEEN:

**ORANGEFIN VENTURES LLC**

(the "**Seller**")

- and -

**SOL STRATEGIES INC.**

(the "**Buyer**")

**W I T N E S S E T H**

**WHEREAS**, the Seller owns and carries on the business of operating and managing nodes that validate transactions on the Solana and Arch blockchain networks and staking tokens on such networks (the "**Business**"); and

**WHEREAS**, the Seller wishes to sell and assign to the Buyer, and the Buyer wishes to purchase and assume from the Seller title to and all rights and obligations of the Seller in the Purchased Assets and the Assumed Liabilities, subject to the terms and conditions set forth herein.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE 1**

**PURCHASE AND SALE OF ASSETS**

1.1 <u>Assets to be Transferred</u>. Subject to the terms and conditions of this Agreement, the Seller agrees to sell to the Buyer, and the Buyer agrees to purchase, free and clear of all Encumbrances, all of the Seller's right, title and interest in, to and under the assets owned by the Seller in the Business (but excluding the Excluded Assets and the Excluded Liabilities) (collectively the "**Purchased Assets**") including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Validators</u>. A 100% ownership interest in the Seller's validator on the Solana blockchain, including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such validator in the Business (the "**Solana Validator**") and a 100% ownership interest in the Seller's validator on the Arch blockchain, including test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such validator in the Business (the "**Arch Validator**", and together with the Solana Validator, the "**Blockchain Validators**"), which includes, in respect of both Blockchain Validators, but is not limited to:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the cryptographic keys that are publicly available and accessible for the purpose of identifying the Blockchain Validators on the applicable blockchain networks ("**Public Keys**"), specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for the Solana Validator on the main network, the authorized withdrawer account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** (which is to be transferred to the Buyer by updating the Public Key and pairing it with a key or account owned by the Buyer), the identity account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** and the vote account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]***;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for the Solana Validator on the test network, the authorized withdrawer account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** (which is to be transferred to the Buyer by updating the Public Key and pairing it with a key or account owned by the Buyer), the identity account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** and the vote account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]***; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) for the Arch Validator on the test network, the Public Key(s) for the Arch test network ***[Redacted - Commercially Sensitive Confidential Information]***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the confidential cryptographic keys that are paired with the Public Keys and provide exclusive access rights to the Blockchain Validators' accounts set out in Section 1.1(a)(i) and authorize the holder to perform activities by the Blockchain Validators (the "**Private Keys**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all rights and authorities, including those for administration and operation, associated with the communication and collaboration tools for the launching of the Solana Validator and Arch Validator on the main networks of the Solana blockchain and Arch blockchain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) testnet SOL tokens allocated to and actively staked or delegated for the operation of the Solana Validator on the Solana test network, with a total balance of 2.6 SOL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the ISO 27001 certificate and documentation related thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Archived e-mails relating to the ISO 27001 certificate in the Seller's Protonmail account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) PP Neue Machina font;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the rights and authorities relating to IPv4 Range ***[Redacted - Commercially Sensitive Confidential Information]*** and ASN ***[Redacted - Commercially Sensitive Confidential Information]*** that are used in the connection to the Blockchain Validators, the communication of the Blockchain Validators with other nodes, and grouping of the network paths used by the Blockchain Validators ("**IPv4 and ASN**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Intellectual Property</u>. All Seller Intellectual Property listed in <u>Exhibit A</u> attached hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Hardware</u>. The following hardware owned by the Seller and used solely in the Business: (i) a system76 laptop and (ii) all hardware wallets, authentication devices and security key, including Yubikey (the "**Purchased Hardware**"), as well as all required information for the Buyer's use of such Purchased Hardware, including account information, pin code, recovery seed phrase (if applicable) and other device documentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Third Party Commercial Agreements and Subscriptions</u>. All rights, title, and interest in the Seller's third-party commercial agreements, licenses, and subscriptions supporting the Purchased Assets, including both contracts, terms and conditions and purchase orders for software solutions and services for IT infrastructure, hosting, security configurations, software development; data backup, cybersecurity monitoring, communication; industry standard compliance, asset management; and network connectivity and allocations, with the third party providers listed in <u>Exhibit B</u> attached hereto (the "**Assumed Contracts**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Other Property</u>. All instruction manuals, service bulletins, operational procedures, security protocols and other similar documentation, lists of customers and suppliers (together with sales and purchase histories), price lists, material and system specifications, prototypes, testnet and sandbox environments, equipment or inventory used for research, marketing and development solely in connection with the Business, and other documents or information generated or used exclusively in the Seller's operation of the Business ("**Business Records**"), together with the goodwill of the Business, in each case, other than with respect to the Excluded Assets and Excluded Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All rights to receive mail, email and other communication solely relating to the Purchased Assets.

1.2 <u>Excluded Assets</u>. Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere in this Agreement, the following assets of the Seller are not part of the sale and purchase contemplated hereunder, are excluded from the Purchased Assets and shall remain the property of the Seller after the Closing (collectively, the "**Excluded Assets**"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all rights and authorities relating to the Ethereum validator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all rights and authorities relating to the Gnosis validator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all rights and authorities relating to the Picasso validator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all rights and authorities relating to the Eigenlayer operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) credit agreements, bank agreements, promissory notes, guarantees, letters of credit, letters of guarantee, negotiable instruments, any lease of any property that would be required to be classified and accounted for as a capital lease in accordance with generally accepted accounting principles and any mortgages and other security agreements that create an Encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all claims for and rights to receive refund of taxes and other governmental charges relating to the Business for any periods arising prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all claims, actions, deposits, prepayments, refunds, causes of action, rights of recovery, rights of set off, and rights of recoupment of any kind or nature (including any such item relating to taxes) relating to the Purchased Assets arising prior to the Closing Date or relating to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Purchase Price and all other rights of the Seller under this Agreement, any Transfer Document to which Seller is a party, and any other agreements entered into by the Seller pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all contracts with any independent contractors or employees of the Seller prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all cash and digital assets and/or tokens owned or held by the Seller, other than the ones held in the identity account located in the Public Key described in Section 1.1(a)(i)(A);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all bank accounts or similar accounts of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all contracts that are not Assumed Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all books and records of the Seller, including, without limitation, tax returns relating to the Excluded Assets or Excluded Liabilities, the Seller's governing documents, minute books and company seals of the Seller, and any documentation contained within the Seller's systems that are not used solely in connection with the Business, other than the Business Records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any of the Seller's employee and personnel records, files, papers, data and related information, including any correspondence related thereto, in whatever form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) any equity interests of the Seller;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) all certificates for insurance, binders for insurance policies and insurance, and claims and rights thereunder and proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) all rights to receive mail, email and other communications relating to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) any attorney-client privilege and any documents or other information covered by attorney-client privilege, the attorney work product doctrine or other similar protection with respect to this Agreement, any Transfer Document, any other agreement entered into or delivered in connection with this Agreement, and the transactions and matters contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) all claims of the Seller against third parties relating to the Business or the Purchased Assets, whether choate or inchoate, known or unknown, contingent or non- contingent for any period prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) any right to, claim to, or interest in any and all airdrops relating to the Business of any and all digital assets distributed or claimable prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) any right to, claim to, or interest in the Paladin tokens and any and all airdrops relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all hardware owned by the Seller other than the Purchased Hardware; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) any other right, property or asset of the Seller that is not a Purchased Asset.

1.3 <u>Ownership Rights of the Buyer</u>. The Seller and the Buyer acknowledge that after the closing of the transaction contemplated by this Agreement, all of the Seller's right, title and interest in, to and under the Purchased Assets (other than any Purchased Assets to be delivered post-Closing in accordance with Article 5 of this Agreement, for which this Section shall apply as at the date such assets are delivered by the Seller to the Buyer) will be owned by the Buyer one hundred percent (100%) and, subject to applicable law and rules and regulations, and technical limitations of the applicable blockchains underlying the Blockchain Validators, the Buyer shall have the exclusive right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) access, manage, operate, control and otherwise use and exploit the Blockchain Validators and all components thereof in the conduct of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) license or permit any third party to access, manage, operate or otherwise use or exploit the Blockchain Validators as the Buyer determines within their sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) control and manage all aspects of the operation of the Blockchain Validators, including the generation, management, and safeguarding of the Blockchain Validators' Private Keys and operational decision making authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all profits generated by the Blockchain Validators; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to this Section 1.3 and Section 3.5(b), sell, assign, transfer, convey and deliver good and marketable title of the Purchased Assets to a third party in whole or in part, without prior written notice or consent to the Seller.

Notwithstanding the foregoing, if the Buyer closes, terminates, sells or otherwise transfers the Solana Validator on or prior to the later of the third anniversary of the Closing Date or the date on which the final Remaining Share Tranche is paid to the Seller in accordance with this Agreement, the Buyer will provide written notice to Seller of the same.

**ARTICLE 2**

**LIABILITIES**

2.1 <u>Assumed Liabilities</u>. Under this Agreement, "**Liabilities**" shall mean liabilities, claims, indebtedness, product warranty, endorsement, losses, costs, expenses, obligations or responsibilities, whether known, unknown, direct, indirect, absolute, contingent or otherwise. At Closing, the Buyer shall assume, agree to perform or discharge, indemnify the Seller against, and otherwise have responsibility for, the following Liabilities of the Seller (the "**Assumed Liabilities**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Liability arising on or after the Closing Date under the Assumed Contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other Liability arising out of or relating to the Buyer's ownership or operation of the Business and the Purchased Assets on or after the Closing Date, including any Liability for taxes.

Notwithstanding the foregoing, it is acknowledged and agreed by the parties that Assumed Liabilities shall only include Liabilities arising on or after the Closing Date and that any present or past Liabilities and any Liabilities that exist as a result of the Seller's actions prior to the Closing Date shall remain with the Seller. With regards to any Purchased Assets to be delivered post- Closing in accordance with Article 5 of this Agreement, Liabilities will only be assumed by the Buyer after the date of transfer of such Purchased Assets by the Seller to the Buyer.

2.2 <u>Excluded Liabilities</u>. The Buyer will not and does not assume, agree to perform or discharge, or indemnify the Seller against, or otherwise have any responsibility for, the Liabilities of the Seller, other than the Assumed Liabilities, whether arising prior to, on or after the Closing Date (the "**Excluded Liabilities**"), including the following, which the Seller will perform and discharge when due:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all present and future Liabilities with respect to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Liability under any Assumed Contract that arises out of or relates to any actual or alleged breach of such Assumed Contract that occurred prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Liability arising out of or relating to the Seller's ownership or operation of the Business and the Purchased Assets prior to the Closing Date, including any liability for taxes; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liabilities of the Seller in respect of any present or former employees or independent contractors, including in respect of their employment or service or the termination thereof.

**ARTICLE 3**

**PURCHASE PRICE - PAYMENT**

3.1 <u>Purchase Price</u>. The aggregate purchase price for the Purchased Assets shall be (collectively, the "**Purchase Price**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) USDC$750,000 to be delivered to the Seller at Closing (the "**Cash Consideration**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) US$750,000 of common shares in the capital of the Buyer ("**Common Shares**") at a price of per Common Share determined by the closing price of the Common Shares on the Canadian Securities Exchange ("**CSE**") as of the trading day immediately preceding to the date hereof (the "**Share Price**") (the "**Closing Share Consideration**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) US$5,000,000 of Common Shares to be distributed over three (3) years from the Closing Date in accordance with Section 3.2(c) (the "**Remaining Share Consideration**" and together with the Closing Share Consideration, the "**Share Consideration**").

3.2 <u>Payment of Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer shall pay the Cash Consideration to the Seller on Closing in USDC, or any other cryptocurrency agreed upon by the parties. It acknowledged and agreed that the value of such alternative currencies is to be based on the closing price of such cryptocurrency on www.coinmarketcap.com as of the day immediately preceding to the date hereof. Notwithstanding the foregoing, the value of each USDC delivered as payment for the Cash Consideration will be US$1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer shall pay the Closing Share Consideration to the Seller at Closing by issuing the applicable number of Common Shares, registered in accordance with the registration instructions provided by the Seller to the Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 3.5, the Buyer shall pay the Remaining Share Consideration to the Seller or an affiliate of the Seller by issuing the following number of Common Shares on the following dates (each, a "**Remaining Share Tranche**"), in each case in accordance with registration instructions provided by the Seller to the Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a number of Common Shares on the date that is six months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a number of Common Shares on the date that is 12 months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a number of Common Shares on the date that is 18 months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a number of Common Shares on the date that is 24 months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a number of Common Shares on the date that is 30 months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a number of Common Shares on the date that is 36 months from the Closing Date equal to US$833,333.33 *divided by* the closing price of the Common Shares on the trading day immediately prior to such payment date.

The Closing Share Consideration and the Remaining Share Consideration shall be calculated using the daily exchange rate announced by the Bank of Canada on the business day immediately preceding the date of such calculation, provided that if such rate is not available on the applicable date, then such rate shall be determined as of the immediately preceding date on which such rate is available.

3.3 <u>Securities Law Considerations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Common Shares to be issued to the Buyer pursuant to Sections 3.1(b) and 3.1(c) will be subject to all applicable securities laws of each of the provinces and territories of Canada and the policies and regulations of the CSE, as they may be promulgated or amended from time to time (collectively, the "**Applicable Securities Laws**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The issuance of the Share Consideration is conditional upon such issuance being exempt from the requirements as to the filing of a prospectus and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the issuance of such Common Shares or upon the issue of such orders, consents or approvals as may be required to permit such issuance without the requirement of filing a prospectus or delivering an offering memorandum or similar document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Forthwith after the Closing Date, the Buyer shall file such forms and documents as may be required under Applicable Securities Laws, which, without limiting the generality of the foregoing, shall include a Form 72-503F as prescribed by Ontario Securities Commission Rule 72-503 *Distributions Outside Canada*.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Common Shares become listed on a U.S. national securities exchange, including without limitation, Nasdaq or the New York Stock Exchange, unless registered under Securities Act of 1933, the Common Shares to be issued to the Buyer pursuant to Sections 3.1(b) and 3.1(c) may be characterized as "restricted securities" under the applicable U.S. federal and state securities laws, inasmuch as they are being acquired in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under Securities Act of 1933, only in certain limited circumstances. In this connection, the Seller represents that it is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act of 1933.

3.4 <u>Trading Restrictions; Registration Rights; Beneficial Ownership Limitation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Common Shares issuable pursuant to the Share Consideration will, unless as otherwise permitted hereunder, be subject to voluntary resale restrictions whereby the Seller shall not sell more than 15% of the five**-**day VWAP in any single trading day. "**VWAP**" means the volume weighted average trading price of the Common Shares on the CSE, calculated by dividing the total value by the total volume of Common Shares traded on the CSE for the relevant period. Notwithstanding anything to the contrary herein, if the Beneficial Ownership Limitation set forth in Section 3.4(d) applies and has been met, then the trading restrictions set forth in this 3.4(a) shall not apply to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time after the Common Shares are listed on a U.S. national securities exchange, the Buyer proposes or is required to file a registration statement or shelf take-down under the Securities Act of 1933 with respect to an offering of Common Shares or similar common equity securities of the Buyer, whether or not for its own account or for the account of one or more securityholders of the Buyer, on a form and in a manner that would permit registration of the Share Consideration, the Buyer shall give written notice not later than ten (10) business days prior to the anticipated date of filing of such registration statement or shelf take-down, or as promptly as otherwise practicable, but not later than ten (10) business days prior to the anticipated date of filing of such registration statement or shelf take-down, to the Seller of its intention to effect such registration or shelf take-down and shall include in such registration or take-down all of the Seller's Share Consideration with respect to which the Buyer has received a written request from the Seller for inclusion therein within three (3) days after the Company's notice is given to the Seller (a "**Piggyback Registration**"), provided, however, the Company shall not be required to register any of the Seller's Share Consideration pursuant to this Section 3.4(b) that are eligible for resale pursuant to Rule 144 without restriction (including, without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or that are the subject of a then-effective Registration Statement, and provided further, if the underwriter(s) or agent(s) that is arranging for sale of securities to be registered on such registration statement shall determine in its or their reasonable good faith judgment that it cannot sell, or that it would not be advisable to sell, all the securities desired to be sold, then the number of Consideration Shares shall be reduced pro rata in proportion to the total number of securities sought to be included by each selling security holder. In the event that the Seller makes such written request, the Seller may withdraw its Share Consideration from such Piggyback Registration by giving written notice to the Buyer and the managing underwriter(s), if any, at any time at least two (2) business days prior to the effective date of the registration statement relating to such Piggyback Registration or the date of the launch of the shelf take-down.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The certificates or book-entry statements evidencing the Share Consideration shall not contain any legend restricting the transfer thereof: (i) while a registration statement (including the S-1 Resale Registration Statement) covering the sale or resale of such Share Consideration is effective under the Securities Act of 1933, (ii) following any sale of such Share Consideration pursuant to Rule 144, (iii) if such Share Consideration are eligible for sale under Rule 144(b)(1), or (iv) if such legend is not required under applicable requirements of Securities Act of 1933 (including judicial interpretations and pronouncements issued by the staff of the Securities and Exchange Commission). When any of the foregoing conditions are first met, the Buyer shall cause its counsel to issue a legal opinion to the Buyer's transfer agent to effect the issuance of the Common Shares without a restrictive legend for the Common Shares promptly (or if such conditions are met at the time of issuance of the Share Consideration, then such shares shall be issued free of all legends). Further, for so long as the Seller holds Share Consideration that is subject to a restrictive legend under the Securities Act of 1933, the Buyer also agrees to do all acts and things as may be reasonably required to by it (or its counsel) to facilitate a sale by the Seller of Common Shares comprising the Share Consideration provided such sale is conducted pursuant to, and in compliance with, Rule 904 of Regulation S promulgated under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Common Shares become listed on a U.S. national securities exchange, including without limitation, Nasdaq or the New York Stock Exchange, the Buyer shall not issue any Share Consideration if, as a result of such issuance, the Seller would beneficially own Common Shares in excess of the Beneficial Ownership Limitation (as defined below) without the Seller's prior written consent. The determination of whether the Beneficial Ownership Limitation will be exceeded shall be in the sole discretion of the Seller. Within two (2) trading days of receipt of a written or oral request from the Seller, the Buyer shall confirm (first orally and then in writing) to the Seller the number of Common Shares then issued and outstanding. For purposes of this Section 3.4(d), the "**Beneficial Ownership Limitation**" shall initially be 4.99% of the Common Shares that would be outstanding immediately after giving effect to the issuance of the Share Consideration issuable on the applicable payment date as set forth in Sections 3.1(b) and 3.1(c), provided that the Seller, in its sole discretion, has the ability to increase the Beneficial Ownership Limitation set forth in this Section 3.4(d).

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3.5 <u>Purchase Price Adjustments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of 5:00 p.m. (Toronto time) on the business day prior to the Closing Date (the "**Initial Stake**") and on each business day prior to the payment dates contemplated by Section 3.2(c) (each, a "**Subsequent Stake**"), the Buyer shall calculate the total delegated stake on the Solana Validator as denominated in SOL. The Buyer and the Seller shall mutually agree on the calculation of the total delegated stake for the Initial Stake and each Subsequent Stake. If any Subsequent Stake amount is more than 5% less than the Initial Stake, the Remaining Share Tranche to be paid on the applicable payment date shall be reduced by an equal percentage difference that exceeds 5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, if the Buyer closes, terminates, sells or otherwise transfers the Solana Validator, or fails to materially operate or cause to be operated the Solana Validator before the date that is three (3) years from the Closing Date, the obligations of the Buyer under Section 3.2(c) shall continue and the Buyer shall pay any Remaining Share Consideration to the Seller on the dates and as prescribed in Section 3.2(c) and such Remaining Share Consideration shall not be subject to any adjustment under Section 3.5(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any payments under this Section 3.5 shall be treated as an adjustment to the Purchase Price by the parties for tax purposes, unless otherwise required by applicable law.

3.6 <u>Additional Obligations of the Parties</u>. After the Closing, the parties shall from time to time at the request of the other party, and without further cost or expense to the requesting party, use commercially reasonable efforts to execute and deliver such other instruments of conveyance and take such other action as either party may reasonably request in order to consummate the transactions contemplated hereby and to vest in the Buyer good and marketable title to the Purchased Assets being transferred hereunder.

3.7 <u>Allocation of the Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer and the Seller hereby agree to the allocation of the Cash Consideration and the Closing Share Consideration among the Purchased Assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 90% to the Blockchain Validators and other Software; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 10% to the goodwill of the Business (other than the Excluded Assets) and other intangible property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer and the Seller hereby agree to the allocation of the Remaining Share Consideration among the Purchased Assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 100% to the Blockchain Validators and other Software.

The parties shall file all tax returns consistent with the foregoing allocation unless required otherwise pursuant to a final "determination" as described in Section 1313(a) of the Internal Revenue Code of 1986, as amended.

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3.8 <u>Transfer Taxes</u>. Each party to this Agreement acknowledges that the Purchase Price is exclusive of all applicable value-added, goods and services, harmonized sales, sales, retail sales, use, consumption, customs, excise, stamp, transfer, or similar taxes, duties or charges ("**Transfer Taxes**"). All applicable Transfer Taxes exigible on the supplies of property or services by the Seller to the Buyer pursuant to this Agreement shall be borne and paid by the Buyer. To the extent that the Seller is required by applicable law to collect such Transfer Taxes from the Buyer, the Buyer shall pay such Transfer Taxes to the Seller, but only after receiving all of the necessary information and/or documentation legally required by the Buyer to claim any available Transfer Tax credits, refunds or rebates in respect of such Transfer Taxes. The parties shall cooperate with each other to the extent reasonably requested and legally permitted to minimize any such Transfer Taxes. The party required by law to file a tax return with respect to such Transfer Taxes shall do so within the time period prescribed by law. The Buyer shall file such elections as may be applicable with the appropriate government authority within the time and in the manner required by applicable laws.

3.9 <u>Withholding Tax.</u> The Buyer shall be entitled to deduct or withhold from any consideration or amount otherwise payable or deliverable to the Seller under this Agreement, such amounts as the Buyer may reasonably determine is required to be deducted and withheld with respect to such payment under applicable law. Without limiting the generality of the foregoing, the parties shall use commercially reasonable efforts to cooperate to mitigate or eliminate any such withholding to the maximum extent permitted by applicable law. The Buyer shall notify the Seller of its intent to withhold at least five (5) business days prior to the relevant payment date with a written explanation substantiating the requirement to deduct or withhold. To the extent that amounts are so deducted or withheld, such deducted or withheld amounts shall be treated for all purposes hereof as having been paid to the Seller, in respect of which such deduction or withholding was made, provided that such deducted or withheld amounts are actually remitted to the appropriate government authority. To the extent that the amount so required to be deducted or withheld from any payment to the Seller exceeds the cash component, if any, of the consideration otherwise payable to such person, the Buyer is hereby authorized to sell or otherwise dispose of such portion of the Share Consideration issuable to the Seller as is necessary to provide sufficient funds to the Buyer to enable it to comply with such deduction or withholding requirement, and the Buyer shall notify the Seller thereof and remit the applicable portion of the net proceeds of such sale (after deduction of all fees, commissions or costs in respect of such sale) to the appropriate government authority and shall remit to such holder any unapplied balance of the net proceeds of such sale. Any sale will be made at prevailing market prices and the Buyer shall not be under any obligation to obtain or indemnify any Seller in respect of a particular price for the Share Consideration so sold.

**ARTICLE 4**

**CLOSING**

4.1 <u>Place and Time of Closing.</u> The closing of the transactions contemplated by this Agreement (the "**Closing**") shall take place virtually by exchange of confirmatory emails of the parties, on or before the second day after all of the conditions to closing set forth in this Article 4 are either satisfied or waived, or at such other time, date or place as the parties may mutually agree in writing (the "**Closing Date**"). At the Closing, the Seller will deliver to the Buyer good and marketable title to the Purchased Assets free and clear of any and all Encumbrances (other than any Purchased Assets to be delivered post-Closing in accordance with Article 5 of this Agreement).

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4.2 <u>Conditions to the Buyer's Obligation to Close</u>. The obligation of the Buyer to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Buyer), on or before the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Delivery of Purchased Assets**. The Seller shall have delivered or made available to the Buyer the Purchased Assets at Closing (other than any Purchased Assets to be delivered post-Closing in accordance with Article 5 of this Agreement). In the case of the Assumed Contracts, subject to Section 5.2 and Section 5.3, the Seller shall have ensured the Buyer's ability to use and benefit from the accounts with such third parties at Closing, by either (i) providing all necessary credentials, passwords and administrative access to the accounts, licenses or services; or (ii) where the Buyer already maintains its own account with the relevant third party, cooperate with the Buyer to facilitate the transition of relevant configuration, data, or account settings (including password reset) from the Seller's account to the Buyer's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Seller to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby shall have been duly performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Buyer's Consents and Approvals**. The Buyer shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including approval (or conditional approval, which may be in the form of the Buyer not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Buyer posts notice of such transactions) of the CSE for listing and posting for trading the Share Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Seller's Consents and Approvals**. Subject to Section 5.3, the Seller shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including consents for assignment of the following Assumed Contracts: ***[Redacted - Commercially Sensitive Confidential Information]***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Corporate Authorizations**. The Seller shall have delivered to the Buyer certified copies of (i) the constating documents of the Seller and (ii) resolutions of the sole member of the Seller approving the entering into and completion of the transactions contemplated by this Agreement, in form and substance reasonably satisfactory to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Investor Questionnaire**. The Seller shall have delivered to the Buyer an accredited investor questionnaire in form and substance reasonably satisfactory to the Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Seller's Certificate**. The Seller shall have delivered to the Buyer a certificate of the sole member of the Seller certifying (i) the continued accuracy of the representations and warranties contained in Article 6 (except those representations and warranties that address matters only as of a specified date, which shall be accurate as of that specified date), except where the failure of such representations and warranties to be accurate would not have a material adverse effect on the Buyer, and (ii) the conditions set forth in Section 4.2(b) have been satisfied, in form and substance reasonably satisfactory to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Transfer Documents**. The Seller shall have executed and delivered to the Buyer such bills of sale, assignments, endorsements and other good and sufficient instruments of conveyance and transfer reasonably satisfactory to the Buyer as shall be effective to vest in the Buyer all of the Seller's right, title and interest in and to the Purchased Assets, including but not limited to an Intellectual Property assignment in form and substance reasonably satisfactory to the Buyer (collectively, the "**Transfer Documents**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Assigned Contracts.** The Seller shall have executed and delivered an assignment and assumption agreement for the Assumed Contracts and all rights thereunder are transferred to the Buyer as of the Closing Date, in form and substance reasonably satisfactory to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Kaplan Independent Contractor Agreement.** The Buyer shall have received an independent contractor agreement for Max Kaplan, in a form satisfactory to the Seller ("**Kaplan Independent Contractor Agreement**") and duly executed by the Buyer (or an affiliate) and Max Kaplan. The Kaplan Independent Contractor Agreement shall, among other things, require the Buyer (or an affiliate) to consult Max Kaplan prior to taking any action concerning the Blockchain Validators or which would have a material impact on the Blockchain Validators, provided that Max Kaplan remains an independent contractor with the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Release of Encumbrances**. All Encumbrances of the Purchased Assets shall have been released and all registrations as filings related thereto discharged (or undertakings to discharge satisfactory to Buyer shall have been given).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **IRS Form W-9.** At or prior to the Closing, the Seller shall provide to the Buyer a properly completed and executed IRS Form W-9 with respect to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Other**. The Buyer shall have received such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Buyer, as may be required to give effect to this Agreement.

4.3 <u>Conditions to the Seller's Obligation to Close</u>. The obligation of the Seller to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Seller), on or before the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Buyer to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby prior to the Closing shall have been duly negotiated, performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Buyer's Certificate**. The Buyer shall have delivered to the Seller a certificate of an officer of the Buyer certifying (i) the continued accuracy of the representations and warranties contained in Article 7 (except those representations and warranties that address matters only as of a specified date, which shall be accurate as of that specified date), except where the failure of such representations and warranties to be accurate would not have a material adverse effect on the Seller, and (ii) the conditions set forth in Section 4.3(a) have been satisfied, in form and substance reasonably satisfactory to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Delivery of Purchase Price**. The Buyer shall have delivered to the Seller the Cash Consideration and the Closing Share Consideration as set out in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Buyer's Consents and Approvals**. The Buyer shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including approval (or conditional approval, which may be in the form of the Buyer not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Buyer posts notice of such transactions) of the CSE for listing and posting for trading the Share Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Corporate Authorizations**. The Buyer shall have delivered to the Seller certified copies of (i) the constating documents of the Buyer and (ii) resolutions of the directors of the Buyer approving the entering into and completion of the transactions contemplated by this Agreement, in form and substance reasonably satisfactory to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Transfer Documents**. The Buyer shall have executed and delivered to the Seller the Transfer Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Kaplan Independent Contractor Agreement.** The Buyer shall have executed and delivered to the Seller the Kaplan Independent Contractor Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Contingent Rights Certificate**. The Buyer shall have delivered to the Seller a certificate executed by an executive officer of the Seller in the form set out in Exhibit C (the "**Contingent Rights Certificate**") representing the contingent rights (the "**Contingent Rights**") of the Seller to potentially be issued Common Shares in connection with the Buyer paying the Remaining Share Consideration pursuant to Section 3.2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Other**. The Seller shall have received such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Seller, as may be required to give effect to this Agreement.

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**ARTICLE 5**

**POST-CLOSING COVENANTS**

5.1 <u>Access to Purchased Assets</u>. Notwithstanding that the Seller may continue to have access to the Private Keys following Closing, the Seller covenants not to access or otherwise make any modifications, changes, or take any other actions with respect to the Private Keys after Closing unless explicitly instructed to by the Buyer. Following Closing, within two (2) business days of the Buyer's receipt of any airdropped Paladin token, it shall notify the Seller and transfer such Paladin token to a wallet directed by the Seller.

5.2 <u>Post Closing Deliverables.</u> It is acknowledged and agreed by the parties that the following Purchased Assets cannot be delivered on the Closing Date and, subject to Section 5.3, the Seller covenants and agrees to use its commercially reasonable efforts to deliver the following Purchased Assets to the Buyer within sixty (60) days following Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) IPv4 and ASN;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the license for PPNEUE Machina font;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all necessary credentials, passwords and administrative access to the accounts licenses or services for:

***[Redacted - Commercially Sensitive Confidential Information]***

it being understood by the Seller that (A) where the Buyer already maintains its own account with the relevant third party, the Seller shall, if requested by the Buyer, cooperate with the Buyer to facilitate the transition of relevant configuration, data, or account settings (including password reset) from the Seller's account to the Buyer's account as contemplated herein, and (B) to the extent that these Purchased Assets cannot be transferred to the Buyer as contemplated herein, the Buyer and Seller shall cooperate and use commercially reasonable efforts to establish an arrangement under which the Buyer would obtain the claims, rights and benefits and assume the corresponding Liabilities under such Assumed Contracts (including by means of any subcontracting, sublicensing or subleasing arrangement, or by virtue of the Buyer creating a new account for such Assumed Contracts).

For clarity, any Purchased Assets not specifically included in this Section 5.2 shall be delivered by the Seller to the Buyer at Closing.

5.3 <u>Post Closing Consents.</u> It is acknowledged and agreed by the parties that the consents for assignment for the following Assumed Contracts cannot be delivered on the Closing Date and the Seller covenants and agrees to use its commercially reasonable efforts to deliver such consents (or authorizations necessary for the assignment or transfer of such licenses, accounts, rights and authorities) to the Buyer within sixty (60) days following Closing:

***[Redacted - Commercially Sensitive Confidential Information]***

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Notwithstanding the foregoing, to the extent consents cannot be received for the Purchased Assets identified in Section 5.3 hereof, the Buyer and the Seller shall cooperate and use commercially reasonable efforts to establish an arrangement under which the Buyer would obtain the claims, rights and benefits and assume the corresponding Liabilities under such Assumed Contract (including by means of any subcontracting, sublicensing or subleasing arrangement; or by virtue of the Buyer creating a new account for such Assumed Contracts).

**ARTICLE 6**

**REPRESENTATIONS AND WARRANTIES OF THE SELLER**

The Seller hereby represents and warrants to the Buyer as follows:

6.1 <u>Duly Incorporated</u>. The Seller is a limited liability company duly formed and organized in the State of Florida and is a validly subsisting limited liability company in good standing in the State of Florida with full corporate capacity, power and authority (a) to own or operate the Purchased Assets, (b) to execute and deliver this Agreement, (c) to consummate the transactions as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

6.2 <u>Accredited Investor</u>. The Seller is an "accredited investor" as defined in Rule 501(a) under the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder.

6.3 <u>No Conflict with Constating Documents</u>. The execution and performance of this Agreement by the Seller and the execution and delivery of all other agreements, documents and instruments to be executed and delivered by the Seller pursuant hereto or in connection with the completion of the transactions contemplated herein, will not conflict with or violate any provision of its constating documents and by-laws and have been duly authorized and approved by all necessary and appropriate action of the sole member of the Seller and by any other necessary action on the part of the Seller to comply with applicable law.

6.4 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Seller and constitutes a valid and legally binding agreement of the Seller enforceable against the Seller in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

6.5 <u>Title</u>. The Seller is the absolute and unconditional owner of, and has good, valid and marketable title to, the Purchased Assets free and clear of all mortgages, liens, charges, security interests, pledges, adverse claims, conditional sale or other title retention agreements, restrictions, demands, equities, encumbrances and rights (each, an "**Encumbrance**") of any person, firm, entity, corporation or governmental authority (a "**Person**") of every nature, kind and description whatsoever including without limitation, rights of any Person (other than the Buyer hereunder) to acquire any ownership interest in or right to possess or use any of the Purchased Assets, and the Seller has the right and full power and authority to sell, assign, transfer, convey and deliver good and marketable title to such assets to the Buyer as herein contemplated. On Closing, the Buyer shall receive good and marketable title to the Purchased Assets (other than any Purchased Assets to be delivered post-Closing in accordance with Article 5 of this Agreement) free and clear of all Encumbrances.

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6.6 <u>Sufficiency of Purchased Assets</u>. Except for the Excluded Assets, the Purchased Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, which are owned and used by the Seller to operate the Business as currently conducted in the ordinary course.

6.7 <u>Litigation</u>. There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Seller) pending or, to the knowledge of the Seller, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, relating to or affecting the Purchased Assets including, without limitation, which would restrain or otherwise prevent, in any manner, the Seller from effectually and legally transferring good and marketable title to the Purchased Assets to the Buyer hereunder, or which would cause any Encumbrance to attach to such property or assets or divest title to such property or assets from the Seller hereunder. The Seller is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. Notwithstanding the foregoing, the Seller is aware and has disclosed to the Buyer that (a) the U.S. Securities and Exchange Commission has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives. There are no outstanding and unsatisfied judgments, decrees or other judicial order binding upon or enforceable against the Seller which affect the Purchased Assets or the performance of this Agreement and would have a material adverse effect on the Seller.

6.8 <u>Consents</u>. No governmental, regulatory or material third party authorizations, consents, approvals or notices are required to be obtained or given or waiting period is required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Seller, other than the consents referred to in Section 4.2(d) and Section 5.3.

6.9 <u>Absence of Conflicting Agreements.</u> To the knowledge of the Seller, neither the execution and delivery of this Agreement or any Transfer Document to which it is a party or the completion of the transactions contemplated herein nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Seller or the Purchased Assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) assuming the required consents are obtained as contemplated by this Agreement, result in any material breach of or default under any Assumed Contract which is either binding upon or enforceable against the Seller or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) assuming the required consents are obtained as contemplated by this Agreement, violate any legally protected right of any Person or give to any Person a valid right or claim against the Buyer or the Purchased Assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in the creation of or imposition of any Encumbrance upon all or any part of the Purchased Assets.

6.10 <u>Employees and Contractors</u>. There are no:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) individuals currently employed whether on a full-time or part-time basis, active or inactive, in connection with the Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) individuals or entities who are otherwise engaged to provide consulting, development, sales, agency, representation or other services for the Business.

6.11 <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Intellectual Property**" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (a) issued patents and patent applications (whether provisional or non-provisional), including design patents, industrial design applications and registrations, divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other governmental authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility models) ("**Patents**"), (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing ("**Trademarks**"), (c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the foregoing ("**Copyrights**"), (d) internet domain names and social media account or user names (including "handles"), whether or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data thereon or relating thereto, whether or not Copyrights, (e) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technical information, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary information and all rights therein ("**Trade Secrets**"), (f) computer programs, operating systems, applications, firmware, and other code, including all source code, object code, screens, user interfaces, report formats, templates, menus, buttons and icons, application programming interfaces, data files, databases, protocols, specifications, and all files, data, materials, manuals, design notes and other items and other documentation related thereto or associated therewith ("**Software**"), (g) rights of publicity, and (h) all other intellectual or industrial property and proprietary rights.

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"**Business Intellectual Property**" means all Intellectual Property used or held for use by the Seller in the conduct of the Business (other than with respect to the Excluded Assets).

"**Seller Intellectual Property**" means all Intellectual Property owned or purported to be owned by the Seller and which is used by the Seller in the conduct of the Business (other than with respect to the Excluded Assets), except for any open source materials incorporated therein, all of which are subject to the applicable licenses related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exhibit A</u> contains a list of the Seller Intellectual Property, including: (i) all applied- for or registered Seller Intellectual Property, specifying as to each, as applicable: the title, mark, or design; the record owner and inventor(s), if any; the jurisdiction by or in which it has been issued, registered, or filed; the patent, registration, or application serial number; the issue, registration, or filing date; and the current status, (ii) all unregistered Trademarks included in the Seller Intellectual Property, and (iii) all proprietary Software included in the Seller Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Seller Intellectual Property is subject to any outstanding order restricting the use or licensing thereof by the Seller. The Seller has not received any claim challenging the validity, use, ownership, enforceability, or effectiveness of any of the Business Intellectual Property and, to the Seller's knowledge, no such claim has been threatened. The Seller does not have any current or future obligation to pay any royalty, license fee, honoraria or other similar consideration to any Person or to obtain any approval or consent for use of any of the Seller Intellectual Property. Subject to Section 5.2 and 5.3, each item of the Seller Intellectual Property included in the Purchased Assets will be owned by the Buyer immediately subsequent to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as set forth in <u>Schedule 6.11(d)</u>, the Seller has not entered into any agreements: (i) under which the Seller is a licensor or otherwise grants to any Person any right or interest relating to any Seller Intellectual Property; (ii) under which the Seller is a licensee or otherwise granted any right or interest relating to the Intellectual Property of any Person that is material to the conduct of the Business, other than with respect to the Excluded Assets; and (iii) which otherwise relate to the Seller's ownership or use of any Seller Intellectual Property, none of the foregoing (i)-(iii) including off-the-shelf software agreements or any open source materials and applicable licenses related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Seller owns all right, title and interest in and to all the Seller Intellectual Property, free and clear of any Encumbrance, and has the right to use and exploit such Seller Intellectual Property without payment to any other Person. The Seller is not bound by, and none of the Seller Intellectual Property is subject to, any agreement that in any way limits or restricts the Seller's ability to use, exploit, assert or enforce the Seller Intellectual Property anywhere in the world. To the knowledge of the Seller, the Seller is using all Business Intellectual Property owned by third parties with the consent of or license from the rightful owner thereof. To the knowledge of the Seller, all such licenses included in the Business Intellectual Property are in full force and effect, and not subject to any Encumbrance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Seller Intellectual Property is sufficient and complete to enable the Seller to carry on the Business in the manner currently operated. To the knowledge of the Seller, there are no issues affecting the Seller's ability to continue to develop, maintain, support and exploit the Business Intellectual Property that would have a material impact on the Business as currently conducted. As between the parties, the Seller Intellectual Property is fully transferable, alienable, licensable and otherwise distributable by the Seller without restriction and without payment to any Person or governmental authority. Except as set forth in Schedule 6.11(f), the Seller has not sold, transferred, assigned or otherwise disposed of any rights or interests in or to the Seller Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subject to Section 5.2 and Section 5.3, neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result in the loss or impairment of, or require the consent of any other Person in respect of, the Seller's right to own or use any Seller Intellectual Property, or the Seller's right to use any Business Intellectual Property in the conduct of the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the knowledge of the Seller, there is no claim that any Seller Intellectual Property, including the design, development, use, import, export, manufacture, licensing, sale or other disposition of the Seller Intellectual Property and the exploitation of the functionality of the Seller Intellectual Property in the conduct of the Business, infringes, misappropriates or interferes with the Intellectual Property rights of any Person, or violate the rights of any Person (including rights to privacy or publicity) and the Seller is not aware of any circumstances which would give rise to such a claim. The Seller has not at any time (i) received any written notice from any Person claiming that the Business Intellectual Property (including any rights thereof), infringes, misappropriates or interferes with the Intellectual Property (including any rights thereof) of any Person, violate the rights of any Person (including rights to privacy or publicity) or constitute unfair competition or trade practices under the applicable laws of any jurisdiction (nor does there exist any basis therefor) or (ii) received any offer for a license of Intellectual Property rights implying that the Business Intellectual Property infringes or misappropriates the Intellectual Property rights of a third party or violates the rights of any Person (including rights to privacy or publicity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the knowledge of the Seller, no Person has infringed, misappropriated or otherwise violated, or is currently infringing, misappropriating, or otherwise violating, any Seller Intellectual Property.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Except as set forth in <u>Schedule 6.11(j)</u>, all Seller Intellectual Property was created solely by past and present employees, independent contractors and consultants of the Seller that were bound by written agreements pursuant to which such Persons: (i) agreed and were bound to maintain and protect the confidential information of the Seller; (ii) acknowledge the Seller's exclusive ownership of all Intellectual Property invented, created or developed by such employee, independent contractor or consultant within the scope of their employment or engagement with the Seller; (iii) grant to the Seller a valid and irrevocable assignment of any ownership interest such employee, independent contractor or consultant may have in or to such Intellectual Property; and (iv) validly and irrevocably waive, their moral rights therein in favour of the Seller and its successors and assigns. No such Person has expressly excluded works or inventions that are used in the Business from any such assignment. To the knowledge of the Seller, no such Person is in violation of any such assignment or confidential information agreement. However, Seller does not represent that he created or was in any way involved in the creation of the cryptographic platforms on which the Solana Validator or the Arch Validators operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Business Intellectual Property materially performs in accordance with the specifications and user documentation provided to the Buyer and contains all current revisions.

6.12 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no Encumbrances for taxes upon the Purchased Assets. The Seller has paid or has made arrangements for the payment of all taxes which have accrued or are due on or before the Closing Date and which would result in an Encumbrance on the Purchased Assets. The Seller has filed all income and other material tax returns required to be filed by it with the appropriate taxing authority, and such tax returns were complete and correct in all material respects. The Seller has paid all income and other material taxes relating to the Business which are due and payable by it. The Purchased Assets were not used in, or held by the Seller in respect of, a business carried on in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller is not registered for any Canadian Transfer Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Buyer is duly registered for purposes of subdivision d of Division V of the *Excise Tax Act* (Canada) and its registration number is ***[Redacted - Commercially Sensitive Confidential Information]***.

6.13 <u>Non-Residency Status.</u> The Seller is a non-resident of Canada for the purposes of the *Income Tax Act* (Canada). The Purchased Assets are not "taxable Canada property" for purposes of the *Income Tax Act* (Canada).

6.14 <u>Compliance with Laws</u>. The Business has been operated and is currently operating in material compliance with all applicable laws and regulations as they currently are applied. The Seller has disclosed to the Buyer that (a) the U.S. Securities and Exchange Commission may take the position that the Solana token (SOL) is a security which may affect the Business, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives, each of which taken separately or together may affect the Business.

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6.15 <u>No Broker or Finder</u>. The Seller has not retained, employed or used any broker or finder in connection with the transaction provided for herein.

6.16 <u>Licences</u>. To the knowledge of the Seller, no governmental licences are necessary to operate the Business.

6.17 <u>No Other Representations and Warranties</u>. Except for the representations and warranties contained in this Article 6, neither the Seller nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Seller, including any representation or warranty as to the accuracy or completeness of any information regarding the Business, the Purchased Assets and the Assumed Liabilities furnished or made available to the Buyer (including any information, documents or material delivered to the Buyer, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the Business or the Purchased Assets, or any representation or warranty arising from statute or otherwise in law.

**ARTICLE 7**

**REPRESENTATIONS AND WARRANTIES OF THE BUYER**

The Buyer hereby represents and warrants to the Seller as follows:

7.1 <u>Duly Incorporated</u>. The Buyer is a corporation duly incorporated and organized in its jurisdiction of incorporation and is a validly subsisting corporation in good standing in its jurisdiction of incorporation with full corporate capacity, power and authority (a) to purchase and own the Purchased Assets, (b) to execute and deliver this Agreement, (c) to issue the Common Shares comprising the Share Consideration to the Seller as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

7.2 <u>Capitalization</u>. The authorized share capital of the Buyer consists of an unlimited number of Common Shares, of which 149,104,090 Common Shares are issued and outstanding as of December 17, 2024. As of the date of this Agreement, the Buyer has 12,673,221 stock options and 563,669 restricted share units outstanding, each stock option and restricted share unit exercisable for or vesting into one Common Share.

7.3 <u>Corporate Action</u>. All necessary corporate action has been taken by the Buyer so as to validly create, authorize and issue the Common Shares comprising the Share Consideration as fully paid and non-assessable securities in the capital of the Buyer. Upon Closing, the Closing Share Consideration will be validly issued and outstanding as fully paid and non-assessable Common Shares and upon each six (6) month anniversary of Closing, the Remaining Share Consideration being issued in accordance with Section 3.2(c) will be validly issued and outstanding as fully paid and non-assessable Common Shares. All necessary steps and proceedings have been, or prior to the issuance of the Common Shares comprising the Share Consideration, will have been taken to permit the Share Consideration to be duly and regularly issued and registered in the name of the Seller (or an affiliate of the Seller) as fully paid and non-assessable.

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7.4 <u>Reporting Issuer</u>. The Buyer is a "reporting issuer" in good standing under Applicable Securities Laws in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, is not on the list of defaulting issuers as maintained by the applicable securities regulatory authority for a default of any requirement of Applicable Securities Laws, and neither the CSE nor any other regulatory authority having jurisdiction over the Buyer has issued any order preventing or suspending trading of any securities of the Buyer. The Buyer is also in compliance in all material respects with all Applicable Securities Laws.

7.5 <u>Listing of Common Shares</u>. As at the date hereof, the Common Shares are listed and posted for trading on the CSE and the OTC Markets, no order ceasing or suspending trading in any securities of the Buyer or prohibiting the issue, sale and delivery (as applicable) of Common Shares or trading of any of the Buyer's securities has been issued and is in effect and no proceedings for such purpose are pending or, to the Buyer's knowledge, threatened. The Buyer has not taken any action which would be reasonably expected to result in the delisting or suspension of the Common Shares on or from the CSE and the Buyer is in material compliance with the rules and regulations of the CSE.

7.6 <u>No Conflict with Constating Documents</u>. The execution and delivery of, and the performance of the terms of this Agreement by the Buyer, including the issue of the Common Shares comprising the Share Consideration, and the execution and delivery of, and the performance of the terms of all other agreements, documents and instruments to be executed and delivered by the Buyer pursuant hereto or in connection with the completion of the transactions contemplated herein, (a) does not and will not constitute a breach of or default under or conflict with or violate any provision of its constating documents and by-laws, and (b) have been duly authorized and approved by all necessary and appropriate action of the board of directors and by any other necessary action on the part of the Buyer to comply with applicable law, including Applicable Securities Laws.

7.7 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Buyer and constitutes a valid and legally binding agreement of the Buyer enforceable against it in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

7.8 <u>Consents</u>. No governmental or regulatory authorizations, consents, approvals or notices are required to be obtained or given nor is any waiting period required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Buyer, other than the conditional approval of the CSE referred to in Section 4.2(c) and 4.3(d), and except for the filing by the Buyer, within the prescribed time periods, of a report of the issuance of the Share Consideration in connection with such sale with the applicable securities commissions, together with the applicable fees, if required.

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7.9 <u>Absence of Conflicting Agreements.</u> Neither the execution and delivery of this Agreement nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Buyer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in any breach of or default under any contract, agreement, indenture, trust or other instrument which is either binding upon or enforceable against the Buyer.

7.10 <u>No Brokers or Finders</u>. Neither the Buyer nor any of its directors, officers, employees, shareholders or agents has retained, employed or used any broker or finder in connection with the transaction provided for herein.

7.11 <u>Legal Proceedings</u>. There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Buyer) pending or, to the knowledge of the Buyer, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, against or by the Buyer or any affiliate of the Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and the Buyer is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. There are no outstanding and unsatisfied judgements, decrees or other judicial order binding upon or enforceable against the Buyer which may affect the performance of this Agreement.

7.12 <u>Solvency</u>. Immediately after giving effect to the transactions contemplated hereby, the Buyer shall be solvent and shall: (a) be able to pay its debts as they become due; (b) own assets that have a realizable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to carry on its business. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated hereby with the intent to hinder, delay or defraud either present or future creditors of the Buyer or the Seller. In connection with the transactions contemplated hereby, the Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

7.13 <u>Compliance with Laws</u>. The business of the Buyer has been operated and is currently operating in material compliance with all applicable laws and regulations as they are currently applied. The Seller understands that (a) the U.S. Securities and Exchange Commission may take the position that the Solana token (SOL) is a security which may affect the Business, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives, each of which taken separately or together may affect the Business.

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7.14 <u>Public Filings</u>. The Buyer has filed all documents and information required to be filed by it under Applicable Securities Laws. All of the Public Disclosure Documents, as of their respective dates of filing, and as of the date of any amendments thereto, complied as to both form and content in all material respects with the requirements of Applicable Securities Laws. The Buyer has not filed any confidential material change reports with any securities regulatory authority that remains confidential. For purposes of this Section 7.14, "**Public Disclosure Documents**" means, collectively, all of the documents that have been filed by or on behalf of the Buyer prior to the date hereof since October 1, 2023 with the relevant securities regulatory authorities pursuant to the requirements of Applicable Securities Laws, including all documents filed under the Buyer's issuer profile on the System for Electronic Document Analysis and Retrieval (SEDAR+).

7.15 <u>Financial Statements</u>. The Buyer Financial Statements were prepared in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board, consistently applied in accordance with past practice and no material adverse effect has occurred since October 1, 2023. The Buyer Financial Statements fairly present (i) the consolidated financial condition of the Buyer as at the respective dates thereof, and (ii) the consolidated results of operations, cash flow and income of the Buyer during the respective fiscal periods covered thereby. Other than as disclosed in the Buyer Financial Statements (including any notes thereto), there are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the Buyer with unconsolidated entities or other Persons that have or could reasonably be expected to have a material adverse effect. For purposes of this Section 7.15, "**Buyer Financial Statements**" means the audited consolidated financial statements of the Buyer for the financial years ended September 30, 2023 and 2022 and the unaudited consolidated financial statements of the Buyer for the nine months ending June 30, 2024 and 2023.

7.16 <u>Independent Investigation</u>. The Buyer has conducted its own independent investigation, review and analysis of the Business and the Purchased Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents and data of the Seller for such purpose. The Buyer acknowledges and agrees that in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, the Buyer has relied solely upon its own investigation and the express representations and warranties of the Seller set forth in Article 6 of this Agreement.

7.17 <u>No Other Representations and Warranties</u>. Except for the representations and warranties contained in this Article 7, neither the Buyer nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Buyer.

**ARTICLE 8**

**COVENANTS**

8.1 <u>Conduct of Business before Closing.</u> From the date hereof until the Closing Date, except as otherwise provided in this Agreement or consented to in writing by the Buyer, the Seller shall:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conduct the Business in the ordinary course of business consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to maintain, preserve and protect the Purchased Assets and Business, including its income, goodwill and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) maintain the Purchased Assets owned, operated or used by the Seller in the same condition as they were on the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) comply in all material respects with all applicable laws.

8.2 <u>Trade Names and Dissolution</u>. In connection with the Closing, the Seller shall discontinue further use of the name "Orangefin Ventures" and the associated logo, except where legally required to identify the Seller until its name has been changed to another name.

8.3 <u>Confidentiality</u>. Neither the Seller nor any corporation controlled by or under common control with the Seller shall (a) use for any purpose, (b) disclose to any Person except the Buyer, or (c) keep or make copies of documents, tapes, discs or programs containing, any confidential information relating exclusively to the Purchased Assets. For purposes hereof, "confidential information" shall mean and include, without limitation, the Purchased Assets described in subsection 1.1 above, and all other information concerning the processes, apparatus, equipment, products, purchasing, marketing and distribution methods used by the Seller exclusively in operating the Purchased Assets which is not publicly known. Notwithstanding the foregoing, "confidential Information" does not include, and there shall be no obligation hereunder with respect to, (i) information that is or becomes generally known or available to the public other than as a result of a disclosure by the Seller in violation of this Section 8.3, (ii) information that becomes available to the Seller on a non-confidential basis and without breach of any duty or obligation of confidentiality from a third-party source other than the Buyer, or (iii) information that was independently developed following the Closing by the Seller without use of or reference to any such confidential information. The Seller is authorized to retain copies of documents needed for product liability and tax purposes and other records needed to assist the Buyer in using the Purchased Assets.

8.4 <u>Employees</u>. The Seller shall be responsible for all wages, bonuses, vacations, sick leave, vacation pay and severance pay and other remuneration benefits, earned or accrue and all other liabilities (collectively "**Wages**") related to all of its employees/contractors or former employees/contractors, and the Buyer shall not have any obligation whatsoever for Wages, or similar payment to the employees/contractors or former employees/contractors, prior to and after the Closing Date, whether or not paid or payable before or after Closing.

8.5 <u>Access</u>. Subject to obtaining the required consents as contemplated by this Agreement, the Seller shall use commercially reasonable efforts to provide the Buyer with all information reasonably required for the Buyer to have unrestricted access to the accounts associated with the Purchased Assets, including, but not limited to the username and password to each such account associated with such Purchased Assets.

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8.6 <u>Consents and Waivers</u>. The Seller shall, at its own expense, use all commercially reasonable efforts to obtain, prior to the Closing, all consents or waivers of third parties required to consummate the transactions contemplated by this Agreement.

8.7 <u>Equitable Relief for Violations</u>. The Seller agrees that the provisions and restrictions contained in this Article 8 are necessary to protect the legitimate continuing interests of the Buyer as a result of its acquisition of the Business, and that any violation or breach of these provisions may result in irreparable injury to the Buyer for which a remedy at law would be inadequate and that, in addition to any relief at law which may be available to the Buyer for such violation or breach, and regardless of any other provision contained in this Agreement, the Buyer shall be entitled to seek such injunctive and other equitable relief as a court may grant after considering the intent of this Agreement.

8.8 <u>Public Announcements</u>. Unless otherwise required by applicable law or stock exchange requirements (including Applicable Securities Laws), prior to Closing, the Buyer and the Seller shall not make, and shall use reasonable efforts to prohibit their other affiliates from making, any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the Buyer and the Seller (which consent shall not be unreasonably withheld or delayed by any party). Prior to Closing, the Buyer shall consult with the Seller prior to issuing any press releases or otherwise making public statements with respect to this Agreement or the transactions contemplated by this Agreement that may be required by Applicable Securities Laws or stock exchange rules, and shall provide the Seller with a reasonable period of time to review and comment on all such press releases or statements prior to the release thereof. To the extent that any such press release or public statement is required by applicable laws or by a governmental authority, the press release or public announcement shall be issued or made after consultation with the other party and after taking into account the other party's comments. If such advance consultation is not reasonably practicable or legally permitted, to the extent permitted by applicable law, the disclosing party shall provide the other party with a copy of any written disclosure made by such disclosing party as soon as practicable thereafter. Notwithstanding the foregoing, the Buyer and the Seller acknowledge and agree that the Buyer shall issue a press release, in a form that has been mutually agreed with the Seller, and post notice of the proposed transaction with the CSE.

**ARTICLE 9**

**INDEMNIFICATION**

9.1 <u>By the Seller</u>. Subject to the other terms and conditions of this Article 9, the Seller hereby agrees to indemnify and defend the Buyer, and its directors, officers, employees and controlled and controlling persons (hereinafter the "**Buyer's Affiliates**"), and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all (i) Liabilities; (ii) losses, damages, judgments, awards, settlements, costs and expenses; and (iii) all demands, claims, suits, actions, costs of investigation, causes of action, proceedings and assessments, whether or not ultimately determined to be valid (collectively, a "**Loss**") incurred or sustained by, or imposed upon, the Buyer's Affiliates based upon, arising out of, with respect to or by reason of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of the Seller set forth in Article 6 this Agreement or in any certificate delivered by or on behalf of the Seller pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Seller pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of the Seller's conduct of the Excluded Liabilities and Excluded Assets following the Closing

9.2 <u>By the Buyer</u>. Subject to the other terms and conditions of this Article 9, Buyer shall indemnify and defend each of the Seller and its managers, officers, employees, affiliates, controlled and controlling persons and their respective representatives (collectively, the "**Seller Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of the Buyer set forth in Article 7 of this Agreement or in any certificate delivered by or on behalf of the Buyer pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Buyer pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of the Buyer's conduct of the Purchased Assets and the Assumed Liabilities following the Closing.

9.3 <u>Indemnification Procedures</u>. The obligations of either party to indemnify the other under this Article 9 shall be subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice and Defence.** The party or parties to be indemnified (the "**Indemnified Party**") will give the party from which indemnification is sought (the "**Indemnifying Party**") prompt written notice of any claim, proceeding or other matter (as used in this Article 9, a "**Claim**"), and the Indemnifying Party will undertake the defence by representatives chosen by the Indemnifying Party. Failure to give prompt notice will only affect the Indemnifying Party's duty to the extent the Indemnifying Party is materially prejudiced. So long as the Indemnifying Party is defending the Claim actively and in good faith, the Indemnified Party shall not settle such Claim. The Indemnified Party shall make available all materials reasonably required by the Indemnifying Party or its representatives in defending such Claim, and the Indemnified Party shall give reasonable cooperation in such defence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Failure to Defend**. If the Indemnifying Party fails to defend a Claim actively and in good faith in a reasonable time after receiving notice or if the Indemnifying Party requests the Indemnified Party to undertake a defence of the Claim, the Indemnified Party will (upon further notice) have the right to undertake the defence or settlement of the Claim or consent to the entry of a judgment with respect to the Claim, and the Indemnifying Party shall thereafter have no right to challenge the Indemnified Party's action under this paragraph.

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9.4 <u>Payment</u>. The Indemnifying Party shall promptly pay the Indemnified Party any amount due under this Article 9, which payment may be accomplished in whole or in part, at the Indemnified Party's option, by the Indemnified Party setting off any amount owed to the Indemnifying Party by the Indemnified Party; provided, that for the avoidance of doubt, the Indemnified Party's right to set off Losses hereunder shall be subject to the other provisions of this Article 8.

9.5 <u>Limitations on Indemnification</u>. Notwithstanding anything else in this Agreement to the contrary neither party shall have any liability (for indemnification or otherwise) until the total of all losses, damages, liabilities, costs and expenses resulting from Claims by an Indemnified Party exceeds $10,000 (the "**Deductible**"), after which, the Indemnifying Party shall be obligated to pay the full amount for any such Losses in excess of the Deductible. Notwithstanding the foregoing, (a) the maximum aggregate amount of liability that one party shall have to the other party shall not exceed the Purchase Price actually paid or received hereunder, and (b) in no event shall either party be liable for any punitive, incidental, consequential, special, or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, The amount of any Loss subject to indemnification under this Article 9 shall be calculated net of any amounts actually recovered under insurance policies applicable to such Loss. If any Indemnified Party receives any insurance or other proceeds from third parties for a Loss, after receiving an indemnification payment from an Indemnifying Party for the related Loss, the Indemnified Party shall pay to the Indemnifying Party the amount of such proceeds.

9.6 <u>Exclusive Remedy</u>. Other than in the case of fraud, the sole recourse and exclusive remedy of any party for any matters arising out of this Agreement and the Transfer Documents or any certificate or instrument delivered pursuant to this Agreement shall be to assert a Claim for indemnification under the provisions of this Article 9. In furtherance of the foregoing, each of the parties hereby waives, from and after the Closing Date, to the fullest extent permitted under applicable law, and any all rights and claims for Losses it may have against any other party arising under, based upon or relating to this Agreement, any applicable law, common law or otherwise (except pursuant to the indemnification provisions set forth in this Article 9). The provisions of this Section 9.6 shall not, however, limit (a) any party's right to seek and obtain specific performance and equitable remedies with respect to Section 8.7, or (b) any claims based on fraud.

**ARTICLE 10**

**MISCELLANEOUS**

10.1 <u>Survival of Representations and Warranties</u>. Subject to any limitation periods set out under applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all representations and warranties made by any party in this Agreement or in any Transfer Document, agreement or instrument shall survive the Closing and continue for a period of eighteen (18) months from the Closing Date; provided, that the representations and warranties set forth in Sections 6.1, 6.3, 7.1, 7.2, 7.3, 7.6 and 7.10 shall survive the Closing and continue for a period of three (3) years from the Closing Date. After such period, no party shall have further liability hereunder with respect to the relevant representations and warranties except with respect to claims properly made within such period; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all covenants and agreements made by any party in this Agreement or in any Transfer Document shall survive the Closing and continue without time limit.

10.2 <u>Assignment; Parties in Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Assignment**. Neither party is permitted to assign its respective rights and obligations hereunder without the prior written consent of the other party, provided, that the Seller may assign or distribute its rights and obligations to its members, successors or assigns in connection with the dissolution or winding up of the Seller without the prior written consent of the Buyer, provided that any such wind up or dissolution of the Seller occurs post-Closing and upon the completion of the Seller's post-Closing covenants under Article 5 hereof. Upon such assignment or distribution, all references to Seller herein shall refer to Seller's assignee or successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Parties in Interest**. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto but all obligations shall be guaranteed by the parties hereto. Nothing contained herein shall be deemed to confer upon any other person any right or remedy under or by reason of this Agreement.

10.3 <u>Governing Law: Jurisdiction</u>. This Agreement shall be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each party to this Agreement irrevocably attorns and submits to the exclusive jurisdiction of the Courts of the City of Toronto with respect to any matter arising under or relating to this Agreement and waives any objections to the assertion or exercise of jurisdiction by such courts, including any objection based on *forum non conveniens*.

10.4 <u>Amendment and Modification</u>. This Agreement may be amended, modified or supplemented only by written agreement of the Buyer and the Seller.

10.5 <u>Time of the Essence</u>. Time is of the essence of each provision of this Agreement.

10.6 <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

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10.7 <u>Entire Agreement</u>. This Agreement (together with any Transfer Documents) embodies the entire agreement between the parties hereto with respect to the transaction contemplated herein, superseding all prior agreements, understandings, negotiations and correspondence between them on the subject hereof including, for greater certainty, the term sheet entered into between the Buyer and the Seller, dated December 2, 2024, and there are no conditions to this Agreement which are not set forth herein.

10.8 <u>Notices</u>. All notices, consents, requests, reports, demands or other communications hereunder (collectively, "**Notices**") shall be in writing and may be given personally, by registered or certified mail or email transmission,

if to the Buyer, addressed to it at:

Sol Strategies Inc.

217 Queen St W #401

Toronto, ON M5V 0R2

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| | |
|:---|:---|
| Attention: | Leah Wald |
| E-mail: | ***[Redacted - Contact Information]*** |

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with a copy to:

Fasken Martineau DuMoulin LLP

333 Bay Street, Suite 2400

Bay Adelaide Centre, Box 20

Toronto, ON M5H 2T6

Attention: Daniel Fuke <br> E-mail: dfuke@fasken.com

if to the Seller, addressed to:

OrangeFin Ventures LLC

2850 34<sup>th</sup> Street North, #554

Saint Petersburgh, FL 33713

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| | |
|:---|:---|
| Attention: | Max Kaplan |
| E-mail: | ***[Redacted - Contact Information]*** |

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with a copy to:

Manatt, Phelps & Phillips, LLP

2049 Century Park East, Suite 1700

Los Angeles, CA 90067

Attention: Veronica Lah ; Mike Katz <br> E-mail: VLah@manatt.com; MKatz@manatt.com

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or to such other address or to such other person as the addressee party shall have last designated by notice to the other party. Notices given by registered or certified mail shall be deemed to have been given three (3) days after being deposited in the mails with postage prepaid. All other notices shall be deemed to have been given when received.

Each of the Buyer and the Seller agree to promptly notify the other party of any change in its electronic mail address, and that failure to do so shall not affect the foregoing.

10.9 <u>Counterparts</u>. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.

10.10 <u>Electronic Execution</u>. To evidence the fact that it has executed this Agreement, a party may send a copy of its executed counterpart to the other party by facsimile transmission or via e-mail in PDF format. That party shall be deemed to have executed this Agreement on the date it sent such facsimile transmission or e-mail. In such event, such party shall forthwith deliver to the other party the counterpart of this Agreement executed by such party.

10.11 <u>Expenses</u>. Each party to this Agreement will pay all costs and expenses attributable to the performance of and compliance with all agreements and conditions contained in this Agreement to be performed or complied with by such party.

10.12 <u>Headings</u>. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

***[Signature page follows]***

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

**SOL STRATEGIES INC.** 

<br> *By: <u>(signed) "Leah Wald"</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Leah Wald

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

**ORANGEFIN VENTURES LLC** 

<br> By: __________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Max Kaplan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Authorized Signatory

***[Signature Page - Sol Strategies Inc. APA]***

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

**SOL STRATEGIES INC.** 

<br> By: __________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Leah Wald

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

**ORANGEFIN VENTURES LLC** 

<br> *By: <u>(signed) "Max Kaplan"</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Max Kaplan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Authorized Signatory

***[Signature Page - Sol Strategies Inc. APA]***

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**EXHIBIT A**

**Seller Intellectual Property**

***[Redacted - Commercially Sensitive Confidential Information]***

------

**EXHIBIT B**

**Assumed Contracts**

***[Redacted - Commercially Sensitive Confidential Information]***

------

**EXHIBIT C**

**Form of Contingent Rights Certificate**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [*INSERT DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE CLOSING DATE*].**

***[Insert applicable US Legend.]***

**<u>CONTINGENT RIGHT CERTIFICATE</u>**

**SOL STRATEGIES INC.**

(the "**Company**")

Reference is made to the asset purchase agreement (the "**Agreement**") between OrangeFin Ventures LLC ("**OrangeFin**") and the Company dated December **⬤**, 2024. Defined terms that are not otherwise defined in this Contingent Rights Certificate (as defined below) shall have the meanings ascribed to such terms in the Agreement.

This certificate (the "**Contingent Right Certificate**") is to certify that, for value received, OrangeFin (the "**Holder**") is the holder of Contingent Rights to potentially be issued Common Shares from time to time in connection with the Company paying the Remaining Share Consideration in accordance with Section 3.2(c) of the Agreement.

These Contingent Rights may only be exchanged in connection with Common Shares being issued as permitted by the terms of the Agreement and Common Shares will only be issued in accordance with the terms of the Agreement. The holding of this Contingent Right Certificate or the rights (the "**Contingent Rights**") represented hereby does not constitute the Holder a shareholder of the Company.

Subject to any requisite approvals, applicable law and the policies of any applicable stock exchange, the Holder may only transfer and/or assign the Contingent Rights represented by this Contingent Right Certificate in connection with any transfer and/or assignment permitted by the Agreement.

Any Common Shares issued pursuant to the Agreement prior to **[April ⬤]<sup>1</sup>**, 2025 will bear the following legend and any Common Shares issued after **[April ⬤]**<sup>1</sup>, 2025 will not bear such legend:

*"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE **⬤**"*

If any one or more of the provisions of this Contingent Right Certificate should be or become invalid, illegal or unenforceable in any respect in any jurisdiction, the remaining provisions contained herein shall be and shall be conclusively deemed to be, as to such jurisdiction, severable therefrom.

_____________________________

1 **NTD**: To be the same date as in the legend above (i.e., 4 months and one day after the Closing Date.

------

Subject to any requisite approval of any applicable stock exchange, the provisions of this Contingent Right Certificate and the Contingent Rights evidenced hereby may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to in writing by the Company and the Holder.

The Contingent Rights shall be deemed to be exchanged on a *pro rata* basis upon the issuance of Common Shares comprising any Remaining Share Consideration pursuant to Section 3.2(c) of the Agreement and shall automatically terminate upon the rights and obligations of the parties under Section 3.2(c) of the Agreement either being fully satisfied or terminated, as applicable.

Time will be of the essence hereof.

This Contingent Right Certificate will be subject to, governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

*[Signature page follows.]*

------

**IN WITNESS WHEREOF**, the Company has caused this Contingent Right Certificate to be signed as of December **⬤**, 2024.

**SOL STRATEGIES INC.**

By: __________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Leah Wald

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

------

**<u>Schedule 6.11(d)</u>**

***[Redacted - Commercially Sensitive Confidential Information]***

------

**<u>Schedule 6.11(f)</u>**

***[Redacted - Commercially Sensitive Confidential Information]***

------

**<u>Schedule 6.11(j)</u>**

***[Redacted - Commercially Sensitive Confidential Information]***

------

## Exhibit 99.55

------

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. **("Sol Strategies"** or the **"Company")** <br> 217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

December 20, 2024

**Item 3 - News Release:**

The news releases announcing the material change referred to in this report were disseminated over Newsfile on December 20, 2024 and December 31, 2024 and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On December 20, 2024, the Company announced it entered into a definitive agreement dated December 20, 2024 to acquire three validators and certain assets related to the validators from Orangefin Ventures LLC. In addition to the validators, Max Kaplan, founder of Orangefin Ventures, joined as the Company's new Head of Staking. The Acquisition was completed on December 31, 2024.

**Item 5 - Full Description of Material Change:**

**5.1** Full Description of Material Change

On December 20, 2024, the Company announced it entered into an asset purchase agreement dated December 20, 2024 for the purchase and sale of three blockchain validators and certain other assets listed in the asset purchase agreement (the "**Acquisition**") from Orangefin Ventures LLC (the "**Seller**")..

In consideration for the purchased assets, the Company paid the Seller USDC$750,000 and issued 503,621 common shares in the capital of the Company ("**Common Shares**") to the Seller at closing of the Acquisition, and will pay up to USD$5,000,000 in additional Common Shares over three years from the closing of the Acquisition.

The Acquisition was completed on December 31, 2024 and Sol Strategies assumed full operational control of the purchased validators and related purchased assets. In addition to the Acquisition, Max Kaplan, founder of Orangefin Ventures LLC, joined as the Company's new Head of Staking.

**5.2 Disclosure for Restructuring Transactions** 

Not applicable.

------

**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer <br>416-480-2488 <br>doug@solstrategies.io

**Item 9 - Date of Report:**

December 31, 2024

------

## Exhibit 99.56

------

**Sol Strategies Announces Major Strategic Investment in Solana**

**CAD $25 Million Credit Facility To Be Deployed to Acquire Solana Tokens**

Toronto, Ontario--(Newsfile Corp. - January 7, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) (formerly Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a Canadian holding company that invests in the Solana blockchain and ecosystem, announced that it has drawn from its amended credit facility agreement (the "Agreement") dated January 6, 2025 with Antanas Guoga (the "Lender"), the Company's Chairman and Director. The Agreement, which amended and restated the previous credit facility agreement dated October 22, 2024, provides for a CAD $25 million unsecured, revolving demand credit facility (the "Credit Facility") to be used exclusively for the purchase of Solana tokens.

The Company has already drawn down $4m of the CAD $25 million facility and intends to continue utilizing the rest for large-scale purchases of Solana tokens to support its staking operations and acquisitions, marking one of the most significant publicly announced commitments to Solana to date.

The Company plans to deploy these tokens across its core focus areas within the Solana ecosystem, including decentralized finance protocols, validator operations, and strategic liquidity provision to emerging Solana-based projects.

Under the terms of the Credit Facility, the Lender has made available to the Company up to CAD $25 million (the "Commitment Amount") in principal amount of unsecured, revolving credit, which may be requested by the Company from time to time prior to January 6, 2027 (the "Maturity Date"). The drawn and unpaid portion of the Commitment Amount (the "Principal Balance") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

"I'm making this capital available to Sol Strategies because of how deeply I believe in both the corporate strategies and Solana itself" said Antanas Guoga, Chairman of Sol Strategies.

Leah Wald, CEO of Sol Strategies, added, "After evaluating multiple financing options for this strategic investment, we determined that the terms offered through this facility provided the most favorable structure for our shareholders. Our staking strategy is tremendously successful, and we are confident that our expanded position in Solana will generate substantial returns for our shareholders while supporting the continued growth of the Solana ecosystem."

The Credit Facility constituted a "related party transaction" as defined in Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as the Lender is a Director, officer and control person of the Company. The terms of the Credit Facility, including the 5% interest rate, were determined to be fair and reasonable based on prevailing market rates and comparable financing arrangements. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the Company is not listed on a specified market and the Credit Facility is less than 25% of the Company's market capitalization, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Offering in an expeditious manner.

------

About Sol Strategies

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF. To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Cautionary Note Regarding Forward-Looking Information

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking statements in this news release include statements regarding the company's future staking holdings and intended use of proceeds from the Credit Facility and growth plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

Officer/Director Contact: <br>Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact:

------

Kristin Cwalinski

KCSA Strategic Communications <br><u>kcwalinski@kcsa.com</u>

Tel: +1 (603) 475-3550

\*\*SOURCE:\*\* Sol Strategies

\*\*Media contact:\*\* <u>solstrategies@kcsa.com</u>

![](exhibit99-56x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/236287</u>

------

## Exhibit 99.57

------

**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**1. Name and Address of Company**

Sol Strategies Inc. (the "**Company**")

217 Queen Street West, Suite 401 <br>Toronto, ON M5V 0R2

**2. Date of Material Change January 6, 2025**

**3. News Release**

A press release disclosing the material change was released on January 7, 2025, through the facilities of Newsfile Corp.

**4. Summary of Material Change**

On January 6, 2024, the Company entered into an an amended and restated credit facility agreement (the "**Agreement**") dated January 6, 2025 with Antanas Guoga (the "**Lender**"), the Company's Chairman and director, providing for a $25 million unsecured, revolving demand credit facility (the "**Credit Facility**"). The Agreement amends and restates the credit facility agreement between the Company and the Lender dated October 21, 2024, to increase the amount available to the Company under the Credit Facility.

**5. Full Description of Material Change**

Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to $25 million (the "**Commitment Amount**") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to January 6, 2027 (the "**Maturity Date**"). The drawn and unpaid portion of the Commitment Amount (the "**Principal Balance**") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

The Company expects to use any borrowings under the Credit Facility for its day-to-day working capital requirements and investment purposes. $4,000,000 of the Credit Facility has been drawn as of the date of this material change report.

The following supplementary information is provided in accordance with Section 5.2 of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("**MI 61-101**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) a description of the transaction and its material terms:**

On January 6, 2024, the Company entered into the Agreement with the Lender, who is a director, the Executive Chairman and a shareholder of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) the purpose and business reasons for the transaction:**

The Company entered into the Agreement to fund the Company's general corporate and working capital requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) the anticipated effect of the transaction on the issuer's business and affairs:**

The Company's general corporate and working capital requirements will be funded by the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) a description of:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) the interest in the transaction of every interested party and of the related parties and associated entities of the interested parties:**

On January 6, 2024, the Company entered into the Agreement with the Lender, who is a director, the Executive Chairman and a shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) the anticipated effect of the transaction on the percentage of securities of the issuer, or of an affiliated entity of the issuer, beneficially owned or controlled by each person or company referred to in subparagraph (I) for which there would be a material change in that percentage:**

Prior to entering into the Agreement, Mr. Guoga held, directly or indirectly, an aggregate of 50,763,267 common shares (the "**Common Shares**") in the capital of the Company and 2,000,000 stock options. Upon entering into the Agreement, Mr. Guoga holds, director or indirectly, an aggregate of 50,763,267 Common Shares and 2,000,000 stock options, representing approximately 33.04% of the issued and outstanding Common Shares on a non-diluted and 33.92% on a partially diluted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) unless this information will be included in another disclosure document for the transaction, a discussion of the review and approval process adopted by the board of directors and the special committee, if any, of the issuer for the transaction, including a discussion of any materially contrary view or abstention by a director and any material disagreement between the board and the special committee:**

A resolution of the board of directors was passed on January 6, 2025, approving the Agreement. No special committee was established in connection with the transaction, and no materially contrary view or abstention was expressed or made by any director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) A summary in accordance with section 6.5 of MI 61-101, of the formal valuation, if any, obtained for the transaction, unless the formal valuation is included in its entirety in the material change report or will be included in its entirety in another disclosure document for the transaction:**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) disclosure, in accordance with section 6.8 of MI 61-101, of every prior valuation in respect of the issuer that relates to the subject matter of or is otherwise relevant to the transaction:**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) that has been made in the 24 months before the date of the material change report:**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) the existence of which is known, after reasonable enquiry, to the issuer or to any director or officer of the issuer:**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) the general nature and material terms of any agreement entered into by the issuer, or a related party of the issuer, with an interested party or a joint actor with an interested party, in connection with the transaction:**

Other than the Agreement, the Company did not enter into any agreement with an interest party or a joint actor with an interested party in connection with Credit Facility. To the Company's knowledge, no related party to the Company entered into any agreement with an interest party or a joint actor with an interested party, in connection with the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) disclosure of the formal valuation and minority approval exemptions, if any, on which the issuer is relying under sections 5.5 and 5.7 of MI 61-101 respectively, and the facts supporting reliance on the exemptions:**

The transaction contemplated by the Agreement is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 - *Protection of Minority Securityholders in Special Transactions* ("**MI 61-101**"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61- 101, as the Company is not listed on a specified market and the Credit Facility is less than 25% of the Company's market capitalization, as determined in accordance with MI 61- 101.

**6. Reliance on subsection 7.1(2) of National Instrument 51-102 The report is not being filed on a confidential basis.**

**7. Omitted Information**

No significant facts have been omitted from this Material Change Report.

**8. Executive Officer**

For further information, contact Doug Harris, Chief Financial Officer of the Company at 416-480- 2488.

**9. Date of Report**

This report is dated at Toronto, this 7th day of January, 2025.

------

**Cautionary Statement Regarding Forward-Looking Information**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this material change report. This material change report contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking statements in this material change report include statements regarding the company's future staking holdings and intended use of proceeds from the Credit Facility and growth plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

## Exhibit 99.58

------

**Sol Strategies Announces CAD $27.5 Million Private Placement with ParaFi Capital**

**Proceeds to be used to Increase SOL Holdings and Expand Validator Operations**

Toronto, Ontario--(Newsfile Corp. - January 9, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced a private placement financing of CAD $27.5 million (the "Private Placement"), with ParaFi Capital (<u>https://parafi.com/</u>), a leading global blockchain investment firm, committing the entire amount. The financing will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

The Private Placement will consist of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $27.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company (each, a "Share"), and the Debentures are convertible at any time into Shares of the Company at CAD $2.50 per Share. Each warrant entitles the holder to purchase one (1) Share of the Company at an exercise price of CAD $2.50 per Share, exercisable at any time on or before the five year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the warrants will be subject to restrictions on trading until the date that is four months and a day following closing. The closing of the Private Placement is expected on or about January 16, 2025, subject to customary closing conditions.

"This financing, led by ParaFi Capital, underscores strong confidence in the potential of Sol Strategies," said **Leah Wald, CEO of Sol Strategies.** "It positions the company to strengthen its leadership in the Solana ecosystem, leveraging staking rewards to create long-term, sustainable value for our shareholders. ParaFi is the ideal capital partner given their crypto-native expertise, broad portfolio, and scaled capital base."

**Ryan Navi, Managing Director at ParaFi Capital, commented,** "ParaFi is excited to back the Sol Strategies team in their mission to build critical infrastructure for the Solana ecosystem. ParaFi's investment will empower Sol Strategies to operate best-in-class validator services, implement a SOL treasury strategy, and support the Solana network. We believe this investment will unlock new opportunities and business lines for Sol Strategies, marking a significant step toward creating greater shareholder value."

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**About ParaFi Capital**

ParaFi Capital LP is an alternative asset management firm that operates hedge fund and venture capital strategies focused on the digital asset ecosystem. Founded in 2018, ParaFi was among the earliest investors in the blockchain industry and has evolved into a trusted partner by leading institutions globally. ParaFi's investment and technology team pursues idiosyncratic opportunities across venture, liquid, and quantitative strategies. As a firm, ParaFi is committed to a culture of rigorous research, technical development, and institutional underwriting to enable exceptional results for our partners and portfolio companies.

For more information, please visit <u>https://parafi.com/</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its impact on the Company. There is no assurance that the Private Placement will close or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media contact:** <u>sol@kcsa.com</u>

![](exhibit99-58x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/236566</u>

------

## Exhibit 99.59

------

**Antanas Guoga**

[Address Redacted]

October 21, 2024

Sol Strategies Inc.

217 Queen Street West, Suite 401

Toronto, ON M5V 0R2

Attention: Leah Wald, Chief Executive Officer

Antanas Guoga is pleased to confirm that it will make available to Sol Strategies Inc. the credit facility described below on, and subject to, the terms and conditions described in this letter and the attached Schedule A (together, this "**Agreement**").

---

| | |
|:---|:---|
| **Borrower:** | Sol Strategies Inc. (formerly, Cypherpunk Holdings Inc., the "**Borrower**"). |
| **Lender:** | Antanas Guoga (the "**Lender**") |
| **Credit Facility:** | Revolving demand loan (the "**Credit Facility**") in the principal amount of up to ten million ($10,000,000.00) Canadian dollars (the "**Commitment**"). |
| **Purpose:** | To finance the Borrower's day-to-day working capital requirements and for investment purposes. |
| **Availability:** | The Credit Facility shall be available by way of direct advances in Canadian dollars bearing interest calculated as set out below. |
| **Advances:** | The Borrower may request an advance under the Credit Facility by delivering to the Lender a written notice of borrowing signed by the Borrower, which shall be delivered to the Lender no later than three (3) days prior to the date of the requested borrowing. The Lender agrees to make advances to the Borrower under the Credit Facility, from time to time prior to the Maturity Date in the amounts and on the dates specified in each such notice of borrowing, provided that the aggregate principal amount outstanding at any one time shall not exceed the amount of the Commitment. |

---

------

---

| | |
|:---|:---|
| **Interest:** | The principal amount of the Credit Facility outstanding from time to time shall bear interest, both before and after maturity, default and judgment, at five per cent (5%) per annum.<br>Interest on amounts outstanding under the Credit Facility shall accrue daily on the basis of actual number of days elapsed in the year of 365 days (or 366 days in a leap-year) and shall, subject to the requirement to repay accrued but unpaid interest at the time of repayment of principal, be payable in arrears on the Maturity Date to the Lender at the location specified above, with interest on overdue interest, as well after as before default, maturity and judgment as hereinafter provided.<br>Interest on overdue interest and principal under the Credit Facility shall accrue both before and after demand and judgment at the same rate per annum. Any payment of principal or interest which becomes due under the Credit Facility on a day which is not a business day (being a day, other than a Saturday or Sunday, on which banks in Toronto, Ontario are open) shall be paid on the next following business day, and such extension shall be taken into account for the calculation of interest and overdue interest. |
| **Term:** | Two-year term, maturing on October 21, 2026 (the "**Maturity Date**"). |
| **Repayment:** | The Credit Facility shall be due and repayable on demand. Subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time, the Credit Facility will revolve and the principal amount of the facility may be drawn, repaid and redrawn at any time prior to the Maturity Date, on which date all amounts then outstanding under or in connection with the Credit Facility, including all principal, interest, and other amounts owing, shall be due and payable in full and the Credit Facility shall terminate. |
| **Conditions Precedent:** | The Lender's obligation to make any loan or to extend (or continue to extend) any credit under this Agreement is subject to the standard conditions precedent set forth in Section 1 of Schedule A hereto. |
| **Representations and Warranties:** | The Borrower makes the representations and warranties set out in Section 2 of Schedule A. |
| **Covenants:** | The Borrower covenants and agrees that it shall comply with the covenants set out in Section 3 of Schedule A. |

---

------

---

| | |
|:---|:---|
| **Governing Law and Forum:** | This Agreement and, unless expressly specified otherwise therein, each document or instrument delivered under or in connection with this Agreement, shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in such Province. The Borrower and the Lender each irrevocably submitsto the exclusive jurisdiction of the courts of the Province of Ontario with respect to all matters arising from this Agreement. |
| **Acceptance and Expiry of this Agreement:** | If the terms and conditions of this Agreement are acceptable to the Borrower, please indicate its acceptance by signing where indicated below and return the signed copy of this Agreement to the Lender by no later than October 21, 2024. If not accepted by such date, this offer shall lapse and this Agreement shall be of no further force or effect. |

---

Yours truly,

**Lender:**

*By:* <u>*"Antanas Guoga"*</u> <br> Antanas Guoga

The undersigned Borrower hereby acknowledges, accepts and agrees to the terms and conditions of this Agreement (including the Schedule A attached hereto) this 21<sup>st</sup> day of October 2024.

**Borrower:**

**SOL STRATEGIES INC.**

*By: <u>"Leah Wald"</u>*

Name: Leah Wald

Title: Chief Executive Officer

------

**SCHEDULE A**

This Schedule A forms an integral part of the letter agreement dated October 21, 2024, between Antanas Guoga and Sol Strategies Inc. to which this Schedule A is attached.

1. <u>Conditions Precedent</u>.

The obligations of the Lender to make any advances or to extend any credit to the Borrower under this Agreement are subject to the completion of each of the following conditions precedent to the reasonable satisfaction of the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Receipt of all necessary shareholder, governmental, regulatory and other material third-party authorizations, approvals and consents required in connection with the execution and delivery of this Agreement and the performance by the Borrower of their respective obligations in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Compliance by the Borrower with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All representations and warranties of the Borrower under this Agreement are true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Compliance with all covenants (financial and non-financial) in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Receipt by the Lender of a notice of borrowing.

2. <u>Representations and Warranties</u>.

The Borrower represents and warrants to the Lender, which representations and warranties shall be deemed to be continuously repeated so long as any amounts or commitments remain outstanding under this Agreement, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is duly organized and validly existing under the laws of its jurisdiction of incorporation or organization and is duly qualified to carry on business in each jurisdiction in which it owns property or assets or carries on business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has the power and authority to own or lease its property, carry on business, enter into this Agreement, and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the power and authority to execute, deliver and perform its obligations under this Agreement to which it is a party, and all corporate and other actions required to do so have been taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has obtained all consents, notices and approvals necessary to enter into the transactions contemplated by this Agreement;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has duly executed and delivered this Agreement and it constitutes a legal, valid and binding obligation, enforceable in accordance with its terms, subject to the rights of creditors generally and to the rules of equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the execution, delivery and performance by it of this Agreement and the transactions contemplated thereby does not, and will not, contravene, violate or result in a breach of, its constating documents, any by-law, applicable laws, regulations or material contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no material litigation, investigation, claim or proceeding pending, or to the knowledge of the Borrower, threatened, by or against it or its assets that could, if adversely determined, have a material adverse effect on the business, operations or prospects of the Borrower.

3. <u>Positive Covenants</u>.

So long as any amounts or commitments are outstanding under this Agreement, the Borrower covenants and agrees with the Lender that it shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pay all principal, interest, fees and other amounts when due and payable under, or in connection with, this Agreement and the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Maintain and preserve its existence, organization and status in its jurisdiction of formation and in each jurisdiction in which it carries on business and make or obtain, and maintain in good standing, all corporate filings, permits, licences, registrations and approvals necessary to do so and required to own and operate its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Use the proceeds of the Credit Facility for the purposes stated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Comply with all applicable laws, regulations, permits and approvals (including, without limitation, environmental, health and safety, labour and employment, anti-money laundering, sanctions, and Canadian trade laws and regulations).

4. <u>Demand Obligations</u>.

All obligations, indebtedness and liabilities of the Borrower are payable by the Borrower to the Lender at any time on demand.

5. <u>Evidence of Indebtedness</u>.

The Lender will maintain books of account evidencing all loans and other amounts owing by the Borrower to the Lender hereunder. The Lender will enter in such accounts the details of all amounts from time to time owing, paid or repaid by the Borrower hereunder, which entries shall constitute *prima facie* evidence of the obligations of the Borrower to the Lender hereunder with respect to all loans and all other amounts owing by the Borrower to the Lender under this Agreement. The Lender shall provide copies of such accounts to the Borrower upon the Borrower's request.

------

6. <u>Successors and Assigns; Assignment</u>.

The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld of delayed.

7. <u>Severability</u>.

If any term or provision of this Agreement is found, for any reason, to be invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision thereof or invalidate or render unenforceable such term or provision in any other jurisdiction.

8. <u>Amendments in Writing</u>.

This Agreement may not be amended or modified except pursuant to an agreement or agreements entered into by the parties hereto in writing.

9. <u>Waiver; Remedies Cumulative</u>.

No failure to exercise and no delay in exercising, on the part of the Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. No breach of any provision of this Agreement may be waived or discharged verbally, and any waiver of, or consent to, any departure by the Borrower therefrom shall in any event be effective unless the same shall be made by way of an instrument in writing signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the time and purpose for which given. Without limiting the generality of the foregoing, the extension of credit shall not be construed as a waiver of any default, regardless of whether the Lender may have had notice or knowledge of such default at the time. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

10. <u>Time of the Essence</u>.

Time is of the essence in this Agreement.

11. <u>Counterparts</u>.

This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

------

12. <u>Notices</u>.

All notices, requests, consents, claims, demands, waivers and other communications hereunder (each, a "**Notice**") shall be in writing and addressed to the addresses set forth on the first page of this Agreement (or to such other address that may be designated by the receiving party from time to time in accordance with this section). All Notices shall be delivered by personal delivery, nationally recognized overnight courier (will all fees pre-paid), email of a PDF document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage prepaid). Except as otherwise provided in this Agreement, a Notice is effective only upon receipt by the receiving party and if the party giving the Notice has complied with the requirements of this Section.

------

## Exhibit 99.60

------

**Antanas Guoga**

[ADDRESS REDACTED]

January 6, 2025

Sol Strategies Inc.

217 Queen Street West, Suite 401

Toronto, ON M5V 0R2

Attention: Leah Wald, Chief Executive Officer

Antanas Guoga is pleased to confirm that it will make available to Sol Strategies Inc. the credit facility described below on, and subject to, the terms and conditions described in this letter and the attached Schedule A (together, this "**Agreement**").

---

| | |
|:---|:---|
| **Borrower:** | Sol Strategies Inc. (formerly, Cypherpunk Holdings Inc., the "**Borrower**"). |
| **Lender:** | Antanas Guoga (the "**Lender**") |
| **Credit Facility:** | Revolving demand loan (the "**Credit Facility**") in the principal amount of up to twenty-five million ($25,000,000.00) Canadian dollars (the "**Commitment**"). |
| **Amendment and Restatement** | This Agreement amends and restates the credit facility agreement dated October 21, 2024 between the Borrower and the Lender (the "**Original Agreement**"). All references to the Agreement or similar references to the Original Agreement shall be deemed to refer to this Agreement, and it may be amended, restated, supplemented or replacement from time to time.<br>All indebtedness, liabilities, obligations of the Borrower under the Original Agreement shall continue as obligations under this Agreement, and this Agreement shall not evidence or result in a novation of such indebtedness, liabilities or obligations. Without limiting the foregoing, all amounts outstanding under the Original Agreement as of the date of this Agreement shall be deemed to be outstanding under and subject to the terms of this Agreement. |
| **Purpose:** | To finance the Borrower's day-to-day working capital requirements and for investment purposes. |
| **Availability:** | The Credit Facility shall be available by way of direct advances in Canadian dollars bearing interest calculated as set out below. |
| **Advances:** | The Borrower may request an advance under the Credit Facility by delivering to the Lender a written notice of borrowing signed by the Borrower, which shall be delivered to the Lender no later than three (3) days prior to the date of the requested borrowing. The Lender agrees to make advances to the Borrower under the Credit Facility, from time to time prior to the Maturity Date in the amounts and on the dates specified in each such notice of borrowing, provided that the aggregate principal amount outstanding at any one time shall not exceed the amount of the Commitment. |

---

------

---

| | |
|:---|:---|
| **Interest:** | The principal amount of the Credit Facility outstanding from time to time shall bear interest, both before and after maturity, default and judgment, at five per cent (5%) per annum.<br>Interest on amounts outstanding under the Credit Facility shall accrue daily on the basis of actual number of days elapsed in the year of 365 days (or 366 days in a leap-year) and shall, subject to the requirement to repay accrued but unpaid interest at the time of repayment of principal, be payable in arrears on the Maturity Date to the Lender at the location specified above, with interest on overdue interest, as well after as before default, maturity and judgment as hereinafter provided.<br>Interest on overdue interest and principal under the Credit Facility shall accrue both before and after demand and judgment at the same rate per annum. Any payment of principal or interest which becomes due under the Credit Facility on a day which is not a business day (being a day, other than a Saturday or Sunday, on which banks in Toronto, Ontario are open) shall be paid on the next following business day, and such extension shall be taken into account for the calculation of interest and overdue interest. |
| **Term:** | Two-year term, maturing on January 6, 2027 (the "**Maturity Date**"). |
| **Repayment:** | The Credit Facility shall be due and repayable on demand. Subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time, the Credit Facility will revolve and the principal amount of the facility may be drawn, repaid and redrawn at any time prior to the Maturity Date, on which date all amounts then outstanding under or in connection with the Credit Facility, including all principal, interest, and other amounts owing, shall be due and payable in full and the Credit Facility shall terminate. |
| **Conditions Precedent:** | The Lender's obligation to make any loan or to extend (or continue to extend) any credit under this Agreement is subject to the standard conditions precedent set forth in Section 1 of Schedule A hereto. |
| **Representations and Warranties:** | The Borrower makes the representations and warranties set out in Section 2 of Schedule A. |
| **Covenants:** | The Borrower covenants and agrees that it shall comply with the covenants set out in Section 3 of Schedule A. |

---

------

---

| | |
|:---|:---|
| **Governing Law and Forum:** | This Agreement and, unless expressly specified otherwise therein, each document or instrument delivered under or in connection with this Agreement, shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in such Province. The Borrower and the Lender each irrevocably submits to the exclusive jurisdiction of the courts of the Province of Ontario with respect to all matters arising from this Agreement. |
| **Acceptance and Expiry of this Agreement:** | If the terms and conditions of this Agreement are acceptable to the Borrower, please indicate its acceptance by signing where indicated below and return the signed copy of this Agreement to the Lender by no later than October 21, 2024. If not accepted by such date, this offer shall lapse and this Agreement shall be of no further force or effect. |

---

Yours truly,

**Lender:**

*By: <u>"Antanas Guoga"</u>* <br> Antanas Guoga

The undersigned Borrower hereby acknowledges, accepts and agrees to the terms and conditions of this Agreement (including the Schedule A attached hereto) this 6<sup>th</sup> day of January, 2025.

**Borrower:**

**SOL STRATEGIES INC.**

*By: <u>"Leah Wald"</u>*

Name: Leah Wald

Title: Chief Executive Officer

------

**SCHEDULE A**

This Schedule A forms an integral part of the letter agreement dated January 6, 2025, between Antanas Guoga and Sol Strategies Inc. to which this Schedule A is attached.

1. <u>Conditions Precedent</u>.

The obligations of the Lender to make any advances or to extend any credit to the Borrower under this Agreement are subject to the completion of each of the following conditions precedent to the reasonable satisfaction of the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Receipt of all necessary shareholder, governmental, regulatory and other material third-party authorizations, approvals and consents required in connection with the execution and delivery of this Agreement and the performance by the Borrower of their respective obligations in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Compliance by the Borrower with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All representations and warranties of the Borrower under this Agreement are true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Compliance with all covenants (financial and non-financial) in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Receipt by the Lender of a notice of borrowing.

2. <u>Representations and Warranties</u>.

The Borrower represents and warrants to the Lender, which representations and warranties shall be deemed to be continuously repeated so long as any amounts or commitments remain outstanding under this Agreement, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is duly organized and validly existing under the laws of its jurisdiction of incorporation or organization and is duly qualified to carry on business in each jurisdiction in which it owns property or assets or carries on business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has the power and authority to own or lease its property, carry on business, enter into this Agreement, and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has the power and authority to execute, deliver and perform its obligations under this Agreement to which it is a party, and all corporate and other actions required to do so have been taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has obtained all consents, notices and approvals necessary to enter into the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has duly executed and delivered this Agreement and it constitutes a legal, valid and binding obligation, enforceable in accordance with its terms, subject to the rights of creditors generally and to the rules of equity; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the execution, delivery and performance by it of this Agreement and the transactions contemplated thereby does not, and will not, contravene, violate or result in a breach of, its constating documents, any by-law, applicable laws, regulations or material contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no material litigation, investigation, claim or proceeding pending, or to the knowledge of the Borrower, threatened, by or against it or its assets that could, if adversely determined, have a material adverse effect on the business, operations or prospects of the Borrower.

3. <u>Positive Covenants</u>.

So long as any amounts or commitments are outstanding under this Agreement, the Borrower covenants and agrees with the Lender that it shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pay all principal, interest, fees and other amounts when due and payable under, or in connection with, this Agreement and the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Maintain and preserve its existence, organization and status in its jurisdiction of formation and in each jurisdiction in which it carries on business and make or obtain, and maintain in good standing, all corporate filings, permits, licences, registrations and approvals necessary to do so and required to own and operate its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Use the proceeds of the Credit Facility for the purposes stated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Comply with all applicable laws, regulations, permits and approvals (including, without limitation, environmental, health and safety, labour and employment, anti-money laundering, sanctions, and Canadian trade laws and regulations).

4. <u>Demand Obligations</u>.

All obligations, indebtedness and liabilities of the Borrower are payable by the Borrower to the Lender at any time on demand.

5. <u>Evidence of Indebtedness</u>.

The Lender will maintain books of account evidencing all loans and other amounts owing by the Borrower to the Lender hereunder. The Lender will enter in such accounts the details of all amounts from time to time owing, paid or repaid by the Borrower hereunder, which entries shall constitute *prima facie* evidence of the obligations of the Borrower to the Lender hereunder with respect to all loans and all other amounts owing by the Borrower to the Lender under this Agreement. The Lender shall provide copies of such accounts to the Borrower upon the Borrower's request.

6. <u>Successors and Assigns; Assignment</u>.

The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld of delayed.

------

7. <u>Severability</u>.

If any term or provision of this Agreement is found, for any reason, to be invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision thereof or invalidate or render unenforceable such term or provision in any other jurisdiction.

8. <u>Amendments in Writing</u>.

This Agreement may not be amended or modified except pursuant to an agreement or agreements entered into by the parties hereto in writing.

9. <u>Waiver; Remedies Cumulative</u>.

No failure to exercise and no delay in exercising, on the part of the Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. No breach of any provision of this Agreement may be waived or discharged verbally, and any waiver of, or consent to, any departure by the Borrower therefrom shall in any event be effective unless the same shall be made by way of an instrument in writing signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the time and purpose for which given. Without limiting the generality of the foregoing, the extension of credit shall not be construed as a waiver of any default, regardless of whether the Lender may have had notice or knowledge of such default at the time. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

10. <u>Time of the Essence</u>.

Time is of the essence in this Agreement.

11. <u>Counterparts</u>.

This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

12. <u>Notices</u>.

All notices, requests, consents, claims, demands, waivers and other communications hereunder (each, a "**Notice**") shall be in writing and addressed to the addresses set forth on the first page of this Agreement (or to such other address that may be designated by the receiving party from time to time in accordance with this section). All Notices shall be delivered by personal delivery, nationally recognized overnight courier (will all fees pre-paid), email of a PDF document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage prepaid). Except as otherwise provided in this Agreement, a Notice is effective only upon receipt by the receiving party and if the party giving the Notice has complied with the requirements of this Section.

------

## Exhibit 99.61

------

**Sol Strategies' Orangefin Ventures Launches Solana Staking App**

**Revolutionizing Mobile Staking for Solana with 8-10%APY and Enhanced Security**

Toronto, Ontario--(Newsfile Corp. - January 16, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, is announcing the launch of its new mobile application from Orangefin Ventures LLC ("Orangefin"), <u>a recent acquisition</u> and trusted provider of non-custodial staking solutions known for exceptional performance and security. This innovative app, now available on the Solana dApp Store, is the first non-custodial staking solution that allows investors to stake Solana (SOL) directly from their phones, delivering a streamlined and intuitive experience.

"This app will allow Solana investors the ability to get the most out of their Solana investment with a simple, secure, and high-yield staking solution," said Leah Wald, CEO of Sol Strategies. "As our first major technology initiative, this launch represents a pivotal step in our journey investing in and fostering innovation, enabling us to build cutting-edge solutions within the blockchain infrastructure."

Key features include:

* **Non-Custodial Model:** Investors retain full control of their keys, enhancing security and ownership of their assets.

* **Higher Staking Returns:** Investors can expect returns ranging from 8% to 10%, significantly surpassing traditional custodial platforms.

* **Compliance and Security:** Orangefin, an ISO 27001 compliant validator, upholds the highest standards of security and reliability.

"Orangefin has been dedicated to building top-tier validator technology for the Solana community," said Max Kaplan, Founder of OrangeFin and Head of Staking at Sol Strategies. "With the resources and strategic expertise from Sol Strategies, we've elevated everything we've built to new heights. This marks another step forward in our mission to deliver even greater value and performance to the Solana ecosystem."

The app is available now on the Solana dApp Store and is expected to launch on Google Play and the Apple App Store late this year.

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Orangefin Ventures**

Orangefin Ventures is a blockchain infrastructure leader specializing in validator operations and decentralized network solutions. The company's cutting-edge technology, ISO 27001 certification, and reliable performance have made it a trusted name in the Solana ecosystem. For more information, visit <u>www.orangefin.ventures</u>.

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**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the launch of the new mobile application and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media contact:** <u>sol@kcsa.com</u>

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![](exhibit99-61x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/237358</u>

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## Exhibit 99.62

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**Sol Strategies Announces Completion of CAD $27.5 Million Private Placement by ParaFi Capital**

**Proceeds to be used to Increase SOL Holdings and Expand Validator Operations**

Toronto, Ontario--(Newsfile Corp. - January 16, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced the completion of its private placement financing of CAD $27.5 million (the "Private Placement"), by ParaFi Capital (<u>https://parafi.com/</u>), a leading global blockchain investment firm, as previously disclosed in the Company's January 9, 2025 <u>news release</u>. The financing will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

The Private Placement will consist of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $27.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 common share purchase warrants (each, a "Warrant"). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company (each, a "Share"), and the Debentures are convertible at any time into Shares of the Company at CAD $2.50 per Share. Each Warrant entitles the holder thereof to purchase one (1) Share of the Company at an exercise price of CAD $2.50 per Share, exercisable at any time on or before January 16, 2030. The Debentures are redeemable in cash after the three year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants will be subject to restrictions on trading until the date that is four months and a day following the date hereof. No finder's fees were paid in connection with the Private Placement.

"This financing by ParaFi Capital, underscores strong confidence in the potential of Sol Strategies," said **Leah Wald, CEO of Sol Strategies**. "It positions the company to strengthen its leadership in the Solana ecosystem, leveraging staking rewards to create long-term, sustainable value for our shareholders. ParaFi is the ideal capital partner given their crypto-native expertise, broad portfolio, and scaled capital base."

"We are backing Sol Strategies in their mission to develop critical infrastructure for the Solana ecosystem," said **Ryan Navi, Managing Director of ParaFi Capital**. "Our investment will enable Sol Strategies to advance their best-in-class validator services, implement a SOL treasury strategy, and strengthen their contributions to the Solana network. This investment will unlock new opportunities and business lines for Sol Strategies, creating a significant step toward enhancing greater shareholder value."

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

------

**About ParaFi Capital**

ParaFi Capital LP ("ParaFi" or the "Firm") is an alternative asset management firm that operates hedge and venture capital strategies focused on the digital asset ecosystem.

Founded in 2018, ParaFi was among the earliest investors in the blockchain industry and has evolved into a trusted partner by leading institutions globally. ParaFi's investment and technology team pursues idiosyncratic opportunities across venture, liquid, and quantitative strategies. As a firm, ParaFi is committed to a culture of rigorous research, technical development, and institutional underwriting to enable exceptional results for our partners and portfolio companies.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media contact:** <u>sol@kcsa.com</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/237434</u>

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## Exhibit 99.63

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**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. ("**Sol Strategies**" or the "**Company**") <br>217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

January 16, 2025

**Item 3 - News Release:**

The news releases announcing the material change referred to in this report were disseminated over Newsfile on January 9, 2025 and January 16, 2025 and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On January 9, 2025, the Company announced a private placement financing of CAD $27.5 million (the "**Private Placement**") of unsecured convertible debenture units ("**CD Units**"), with ParaFi Capital, a leading global blockchain investment firm, committing the entire amount. Each CD Unit consists of one debenture with a principal amount of CAD $1,000, and 400 common share purchase warrants. The financing will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

**Item 5 - Full Description of Material Change:**

**5.1 Full Description of Material Change**

On January 9, 2025, the Company announced a private placement financing of CAD $27.5 million (the "**Private Placement**") of unsecured convertible debenture units ("**CD Units**"), with ParaFi Capital, a leading global blockchain investment firm, committing the entire amount. Under the Private Placement, the Company issued 27,500 CD units to ParaFi Digital Opportunities LP, ParaFi Venture Fund II LP and ParaFi Quantitative Strategies LP (collectively, the "**Purchasers**"). The terms of the Private Placement are governed by securities purchase agreements entered into with each of the Purchasers and executed debenture certificates and warrant certificates issued to each Purchaser.

The financing will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

Each CD Unit consists of (i) one 2.5% unsecured convertible debenture in the principal amount of CAD$1,000 (each, a "**Debenture**") maturing on January 16, 2030 at 5:00 p.m. EST (the "**Maturity Date**"), and (ii) 400 common share purchase warrants (each, a "**Warrant**" and collectively, the "**Warrants**"), with each whole Warrant entitling the holder thereof to purchase one common share in the capital of the Company at an exercise price of CAD$2.50, with a term ending on the Maturity Date.

------

Any common shares in the capital of the Company ("**Common Shares**") issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants will be subject to restrictions on trading until the date that is four months and a day following closing of the Private Placement.

The Debentures will bear interest (the "**Interest**") at a rate of 2.5% per annum, accruing from the date of issuance and payable semi-annually in cash or, at the election of the Company, in freely tradeable Common Shares. When such Interest is paid in Common Shares ("**Interest Shares**"), the number of Interest Shares to be issued shall be determined by the quotient obtained by dividing (x) by (y), with (x) representing the Interest accrued on the Debenture from and including the date the Debenture is issued, or the most recent date on which such Interest was payable, as applicable, to the date on which such Interest is payable; and (y) representing the 20-trading day volume-weighted average price of the Common Shares listed on the Canadian Securities Exchange, calculated up to the date on which such Interest is payable.

All or a portion of the principal amount of each Debenture and accrued and unpaid interest as of the date of conversion will be convertible into Common Shares (each a "**Debenture Share**" and collectively, the "**Debenture Shares**") at the option of the holder, at any time and from time to time, commencing on the date of issuance and ending on the Maturity Date, at a price of $2.50 (the "**Conversion Price**"). Upon conversion, the holder will receive the number of Common Shares equal to the principal amount of the Debentures converted divided by the Conversion Price. The closing of the Private Placement was completed on January 16, 2025.

**5.2 Disclosure for Restructuring Transactions**

Not applicable.

**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer <br>416-480-2488 <br>doug@solstrategies.io

**Item 9 - Date of Report:**

January 16, 2025

------

## Exhibit 99.64

------

*Execution Version*

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this <u>"Agreement")</u> is dated as of January 8, 2025, between Sol Strategies Inc., a corporation incorporated under the laws of the Province of Ontario (the <u>"Company"),</u> and the purchaser identified on the signature pages hereto (the <u>"Purchaser").</u>

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to the exemption from registration under Rule 506(b) of Regulation D of the Securities Act of 1933, as amended (the <u>"Securities Act")</u> and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States, or the exclusion from registration pursuant to Regulation S under the Securities Act <u>("Regulation</u> S"), as applicable, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

**ARTICLE I.** <br>**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions.</u> In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

"<u>$</u>" means Canadian dollars.

"<u>Act</u>" means the *Securities Act* (Ontario).

<u>"Affiliate"</u> means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with another Person, as such terms are used in and construed under Rule 405 under the Securities Act.

<u>"Applicable Securities Laws"</u> means all securities, corporate, and other laws, rules, regulations, and policies applicable in Canada, including the securities laws of each province and territory and the respective rules, regulations, instruments, blanket orders, blanket rulings under such laws together with applicable, published policies, policy statements, and notices of the Canadian Securities Administrators.

<u>"Board of Directors"</u> means the board of directors of the Company, as constituted from time to time.

------

<u>"Business Day"</u> means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York and the City of Toronto are authorized or required by law to remain closed; <u>provided, however,</u> for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in the City of New York and the City of Toronto are generally are open for use by customers on such day.

<u>"Canadian Securities Administrators"</u> means, collectively, each of Canada's provincial and territorial securities regulators and securities regulatory authorities.

"<u>CDS</u>" means CDS Clearing and Depository Services Inc.

<u>"Closing"</u> means the closing of the purchase and sale of the Convertible Debenture Units pursuant to Section 2.1.

<u>"Closing Date"</u> means January 15, 2025, being the date that is five Trading Days following the date of the Disclosure Time, or such other date as may be agreed in writing by the parties.

<u>"Commission"</u> means the United States Securities and Exchange Commission.

<u>"Common Shares"</u> means the common shares in the capital of the Company and any other class of securities into which such securities may hereafter be reclassified or changed.

<u>"Common Shares Equivalents"</u> means any securities of the Company which would entitle the holder thereof to acquire at any time Common Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

<u>"Company Counsel"</u> means Fasken Martineau DuMoulin LLP with respect to Canadian matters and Dorsey & Whitney LLP with respect to U.S. matters.

<u>"Convertible Debenture Unit"</u> means a convertible debenture unit of the Company consisting of one (1) Debenture and 400 Warrants.

"<u>CSE</u>" means the Canadian Securities Exchange.

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<u>"CSE Approval"</u> means the approval (or conditional approval, which may be in the form of the Company not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Company posts notice of such transactions) of the CSE for listing and posting for trading the Debenture Shares and Warrant Shares.

<u>"Debenture"</u> means a $1,000 principal amount 2.5% unsecured debenture of the Company due on the Maturity Date, convertible at the discretion of the holder into Debenture Shares at a conversion price of $2.50 per Debenture Share and represented by a certificate substantially in the form set out as Exhibit **"**B**"** hereto.

<u>"Debenture Shares"</u> means the Common Shares issued or issuable to the Purchaser upon the conversion of the Debentures.

<u>"Disclosure Time"</u> means prior to 8:00 am (ET) on the first Trading Day following the execution of this Agreement.

<u>"Exchange Act"</u> means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

<u>"Governmental Authority"</u> means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

<u>"Information Record"</u> means information contained in any press release, material change report, financial statement, annual information form, annual or interim report, business acquisition report, proxy circular, prospectus, technical report, or other document of the Company which, from and after October 1, 2022, has, or has required to have been, filed on SEDAR+.

<u>"Institutional Accredited Investor"</u> means an institutional "accredited investor" within the meaning of Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) of Regulation D under the Securities Act.

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<u>"Material Adverse Effect"</u> means the effect resulting from any event, change, circumstance, fact, or state of being which could reasonably be expected to have a significant and adverse effect on the business, affairs, capital, liabilities (absolute, accrued, contingent, or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations, or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company, but excluding any such event, change, circumstance, fact, or state of being attributable to or arising from: (A) general economic or business conditions; (B) Canada, the U.S. or foreign economies, or financial, banking or securities markets in general, or other general business, banking, financial or economic conditions; (C) acts of God or other calamities, pandemics (including COVID-19 and any Governmental Authorities response thereto), national or international political or social conditions, including the engagement and/or escalation by the U.S. or Canada in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the U.S. or Canada or any of their territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of the U.S. or Canada; (D) the identity of the Purchaser or its Affiliates; (E) conditions generally affecting the industry in which the Company participates; (F) the public announcement, entry into, performance of, or compliance with obligations under this Agreement or the transactions contemplated hereby, or the identity of the parties; or (G) the failure of the Company meet or achieve the results set forth in any internal projections (but not the underlying facts giving rise to such failure unless such facts are otherwise excluded pursuant to the clauses contained in this definition); provided that the exclusions in clauses (A), (B), (C), (E) or (G) shall not apply to the extent such events are disproportionately adverse to the Company, taken as a whole, as compared to other companies in the industries in which the Company operates.

<u>"Maturity Date"</u> means the date that is the fifth anniversary of the Closing Date, on or before 5:00 p.m. (EST).

<u>"Person"</u> means an individual, firm, corporation, partnership, trust, fund, association, syndicate, organization or other organized group of persons, whether incorporated or not, and an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

<u>"ReIPO"</u> means an initial underwritten offering of the Common Shares pursuant to an effective Registration Statement filed under the Securities Act.

<u>"Registrable Securities"</u> means (a) the Debenture Shares, the Warrant Shares and the Interest Shares beneficially owned by the Purchaser from time to time, and (b) any Common Shares issued or issuable with respect to any shares described in subsection (a) above by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other reorganization or other similar event with respect to the Common Shares (it being understood that, for purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) the Commission has declared a Registration Statement covering such securities effective and such securities have been disposed of pursuant to such effective Registration Statement, or (ii) such securities are sold under circumstances in which all of the applicable conditions of Rule 144 are met.

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<u>"Registration Date"</u> means the date on which the Company becomes subject to Section 13(a) or Section 15(d) of the Exchange Act.

<u>"Registration Statement"</u> means any registration statement of the Company, including the prospectus, amendments and supplements (including shelf supplements) to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference in such registration statement.

<u>"Rule 144"</u> means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

<u>"Rule 904"</u> means Rule 904 of Regulation S promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission.

<u>"Securities"</u> means the Debentures, the Debenture Shares, the Warrants, the Warrant Shares and the Interest Shares.

<u>"SEDAR+"</u> means the System for Electronic Document Analysis and Retrieval+ of Canada.

<u>"Share Capital Summary"</u> means the summary of the Company's share capital as presented in <u>Schedule 3.1(e)</u> attached hereto.

<u>"Short Sales"</u> means all "short sales" as defined **in Rule 200 of Regulation SHO** under the Exchange Act (but shall not be deemed to include locating and/or borrowing Common Shares).

<u>"Subscription Amount"</u> means the aggregate amount to be paid for the Convertible Debenture Units purchased hereunder as specified below the Purchaser's name on the signature page of this Agreement and next to the heading "Subscription Amount," in Canadian dollars and in immediately available funds.

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<u>"Trading Day"</u> means a day on which the principal Trading Market is open for trading.

<u>"Trading Market"</u> means the TSX Venture Exchange, the Toronto Stock Exchange or the CSE (or any successors to any of the foregoing).

<u>"Transaction Documents"</u> means this Agreement, the debenture certificate evidencing the Debentures, warrant certificates evidencing the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

<u>"U.S. Person"</u> means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act.

<u>"U.S. Purchaser"</u> means a Purchaser who is a Person in the United States or a U.S. Person, or was offered the Securities, or executed or delivered this Agreement, in the United States, or was in the United States at the time the Purchaser's buy order originated, or is purchasing the Securities for the account of or benefit of a U.S. Person or a Person in the United States, or is otherwise subject to the securities laws of the United States. For greater certainty, a "U.S. Purchaser" does not include a Purchaser that is a discretionary or similar account (other than an estate or trust) that is excluded from the definition of "U.S. Person" pursuant to Rule 902(k)(2)(i) of Regulation S, and is held on behalf of a Person that is not a U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States.

<u>"United States"</u> means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

<u>"VWAP"</u> means the volume-weighted-average-price of the Common Shares.

<u>"Warrant"</u> means a Common Share purchase warrant delivered to the Purchaser at the Closing, exercisable immediately into one Warrant Share at the Warrant Exercise Price, with a term ending on the Maturity Date and represented by a certificate substantially in the form set out as Exhibit "C" hereto.

<u>"Warrant Shares"</u> means the Common Shares issuable upon exercise of the Warrants.

<u>"Warrant Exercise Price"</u> means $2.50.

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**ARTICLE II.**

**PURCHASE AND SALE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purchase.</u> Upon the terms and subject to the conditions set forth herein, the Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase, from the Company an aggregate of 3,571.429 Convertible Debentures Units on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Debenture and Warrant Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Convertible Debenture Unit is comprised of one Debenture and 400 Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All or a portion of the principal amount of the Debentures and accrued and unpaid interest as of the date of conversion shall be convertible into Debenture Shares at any time and from time to time following Closing at the option of the holder at a conversion price of $2.50 per Debenture Share, in accordance with the terms of the certificate evidencing the Debentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Debentures bear interest at a rate of 2.5% per annum from the date of issue, payable semi-annually in cash, or at the election of the Company (subject to certain limits), in freely tradeable Common Shares at a price per Common Share equal to the 20 trading day VWAP of the Common Shares on the CSE, calculated up to the date on which such interest is owing pursuant to the Debenture <u>("Interest Shares").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Debentures will mature and the principal amount thereof and all accrued and unpaid interest thereon shall become fully payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Debentures shall rank *pari passu* with all outstanding and after-issued unsecured debt of the Company, provided that if the Company incurs additional indebtedness (the <u>"Additional Debt")</u> following the date of this Agreement which indebtedness guaranteed by any subsidiaries or is secured by recourse against the assets of the Company or any subsidiaries, at the option of the Purchaser, the debt evidenced by the Debentures shall be guaranteed and secured, as applicable, on substantially the same basis as the Additional Debt and rank *pari passu* with such Additional Debt, provided that the Purchaser shall enter into substantially the same credit support and security documents as the lender of such Additional Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Warrant entitles the Purchaser to acquire one (1) Warrant Share at any time following Closing at the option of the holder at an exercise price equal to the Warrant Exercise Price until the Maturity Date, in accordance with the terms of the certificate evidencing the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Closing.</u> On the Closing Date, the Purchaser shall deliver to the Company, via wire transfer, immediately available funds equal to the Subscription Amount, and the Company shall deliver to the Purchaser certificates representing the Debentures and Warrants comprising the Convertible Debenture Units, and the Company and the Purchaser shall deliver the other items set forth in Section 2.4 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.4 and 2.5, the Closing shall occur at the offices of the Company Counsel in Canada or such other location as the parties shall mutually agree.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Deliveries.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate evidencing the Debentures, registered in the name of the Purchaser, setting out the principal amount, interest rate, interest payment schedule, and conversion terms, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate evidencing the Warrants, registered in the name of the Purchaser, entitling the Purchaser to acquire Common Shares, with the number of Common Shares, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) this Agreement duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Company certifying the matters set forth in Sections 2.5(b)(i) to 2.5(b)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreements and other documents as the Purchaser may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement duly executed by the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Purchaser is a U.S. Purchaser, then the U.S. Purchaser is purchasing the Securities as an Institutional Accredited Investor, and is delivering a duly completed and executed copy of a U.S. Accredited Investor Confirmation Certificate (including the questionnaire and certifications included therein) in the form attached hereto as <u>Exhibit "A"</u> (a <u>"U.S. Accredited Investor Confirmation Certificate");</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Subscription Amount by wire transfer to the account specified in writing by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Purchaser certifying the matters set forth in Sections 2.5(a)(i) and 2.5(a)(ii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreement and other documents as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Closing Conditions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless any representations and warranties are (x) qualified by materiality, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the delivery by the Purchaser of the items set forth in Section 2.4(b) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless any representations and warranties are (x) qualified by materiality or Material Adverse Effect, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of this Agreement, no Material Adverse Effect shall have occurred;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the delivery by the Company of the items set forth in Section 2.4(a) of this Agreement.

**ARTICLE III.**

**REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Representations and Warranties of the Company.</u> The Company hereby makes the following representations and warranties to the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company: (a) is incorporated and validly subsisting corporation under the laws of its jurisdiction of incorporation and is up-to-date in all filings required to be made by it under the laws of its jurisdiction of existence; (b) has all requisite corporate power, capacity and authority to carry on its business as now conducted or proposed to be conducted and to execute and deliver the Agreement and to carry out the transactions contemplated by this Agreement and carry out the obligations hereunder; and (c) is duly qualified, licensed or registered to transact business in each jurisdiction in which such qualification, license or registration is required, whether by reason of the ownership or leasing of property or the conduct of business, and is carrying on business in material compliance with all applicable laws, rules and regulations of each such jurisdiction. Notwithstanding the foregoing, the Purchaser is aware that certain securities regulatory authorities, including the U.S. Securities and Exchange Commission, may take positions regarding the classification of certain assets, operations, or activities of the Company as involving securities or derivatives, which could, individually or collectively, affect the business, operations, or regulatory obligations of the Company, including that (a) the SEC has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security, and (b) the Canadian Securities Administrators **and** Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction). The Company has taken all necessary corporate action to authorize the execution and delivery of this Agreement, and the performance of its obligations under this Agreement and to observe and perform its obligations hereunder in accordance with the provisions hereof, including the creation, issue and sale of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All necessary corporate actions have been taken by the Company to authorize the creation, issue and sale of the Securities, and the delivery to the Purchaser of certificates evidencing the Debentures and the Warrants. On the Closing Date, the Debentures and the Warrants will be, and the Debenture Shares will be at the time of conversion of the Convertible Debenture Units and the Warrant Shares will be at the time of exercise of the Warrants, and the Interest Shares will be at the time of the election made by the Company, free and clear of all liens and restrictions on transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the due conversion of the Debentures in accordance with the terms thereof, the due exercise of the Warrants in accordance with the terms thereof (including payment of the Warrant Exercise Price) and the due election to pay interest in Interest Shares under the Debentures, the Debenture Shares, the Warrant Shares and the Interest Shares, respectively, will be validly issued and outstanding as fully paid and non-assessable Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The capitalization of the Company as of the date hereof is, and except for the exercise of convertible securities in the ordinary course after the date hereof will be, as set forth on the Share Capital Summary. As of the date hereof and prior to the issuance of the Securities contemplated by this Agreement, no shareholder other than as set out on the Share Capital Summary holds 5% or more of the Common Shares. There are no plans to amend the articles or by-laws of the Company. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except as a result of the purchase and sale of the Securities and as set forth on the Share Capital Summary, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Common Shares, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional Common Shares or Common Shares Equivalents. The issuance and sale of the Securities will not obligate the Company to issue Common Shares or other securities to any Person (other than the Purchaser). There are no outstanding securities or instruments of the Company with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company. There are no outstanding securities or instruments of the Company that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a security of the Company. The Company does not have any share appreciation rights or "phantom share" plans or agreements or any similar plan or agreement. All of the outstanding shares of share capital of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all applicable securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No approval or authorization of any shareholder or, other than the CSE Approval, others, is/are required for the issuance and sale of the Securities. There are no shareholders agreements, pooling agreements, voting agreements or other similar agreements with respect to the share capital of the Company to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company is a "reporting issuer" in good standing under Applicable Securities Laws in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, is not on the list of defaulting issuers as maintained by the applicable Canadian Securities Administrators for a default of any requirement of Applicable Securities Laws, and neither the CSE nor any other regulatory authority having jurisdiction over the Company has issued any order preventing or suspending trading of any securities of the Company. The Company is also in compliance in all material respects with all Applicable Securities Laws, and all material filings and fees required to be made and paid by the Company pursuant to Applicable Securities Laws and general corporate laws have been made and paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company (i) was not and is not an "ineligible issuer" (as defined in Rule 405 under the Securities Act) (an <u>"Ineligible Issuer"),</u> without taking into account any determination by the Commission pursuant to Rule 405 under the Securities Act that it is not necessary that the Company be considered an Ineligible Issuer, and (ii) was and is a "foreign private issuer" within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the knowledge of the Company, except as set forth in the Share Capital Summary, no person beneficially owns, or exercises control or direction over, directly or indirectly, 5% or more of the outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company does not own or control, directly or indirectly, any interest in any corporation, partnership, joint venture or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Common Shares are listed and posted for trading on the CSE. No order ceasing or suspending trading in any securities of the Company or prohibiting the issue, sale and delivery (as applicable) of Common Shares or trading of any of the Company's securities has been issued and is in effect and no proceedings for such purpose has been instituted or are pending or, to the Company's knowledge, contemplated or threatened. The Company has not taken any action which would be reasonably expected to result in the delisting or suspension of the Common Shares on or from the CSE and the Company is in material compliance with the rules and regulations of the CSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Company) pending or, to the knowledge of the Company, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, against or by the Company or any Affiliate of the Company that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and the Company is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. There are no outstanding and unsatisfied judgements, decrees, orders, writs, injunctions, awards, rules, policies or regulations of any court, tribunal or other Governmental Authority or other judicial order binding upon or enforceable against the Company which may affect the performance of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company is in compliance in all material respects with its disclosure obligations, and has filed all documents and information required to be filed by it under Applicable Securities Laws. All of the documents filed as part of the Information Record, as of their respective dates of filing and as of the date of any amendments thereto, complied in all material respects, both in form and content, with the requirements of Applicable Securities Laws, and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. There is no fact of specific application to the Company known to the Company which the Company has not publicly disclosed, or so far as the Company can reasonably foresee, could materially adversely affect, the assets, liabilities (contingent or otherwise), affairs, business, capital, condition (financial or otherwise), operations or prospects of the Company or the ability of the Company to perform its obligations under this Agreement. The Company has not filed any confidential material change reports with any securities regulatory authority that remains confidential. The Company is not subject to a continuous disclosure review with any Canadian Securities Administrators nor are there any outstanding unresolved comments from any Canadian Securities Administrators in respect of the disclosure made in the Company's Information Record. The Company is not aware of any circumstances presently existing under which liability is or would reasonably be expected to be incurred under Part XXIII.1 of the *Securities Act* (Ontario) and analogous provisions under Applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance: (a) that transactions are completed in accordance with the general or specific authorization of management and directors of the company; (b) that transactions are recorded as necessary to permit the preparation of consolidated financial statements for the Company in conformity with International Financial Reporting Standards ("IFRS") and to maintain asset accountability; (c) that access to assets of the Company is permitted only in accordance with the general or specific authorization of management and directors of the Company; (d) that the recorded accountability for assets of the Company is compared with the existing assets of the Company at reasonable intervals and appropriate action is taken with respect to any differences therein; and (e) regarding the prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Company that could have a material effect on the Company's interim or annual financial statements. The Company is in compliance in all material respects with National Instrument 52-109 - *Certification of Disclosure in Issuer's Annual and Interim Filings* of the Canadian Securities Administrators, as applicable to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company Financial Statements were prepared in accordance with the IFRS, as issued by the International Accounting Standards Board, consistently applied in accordance with past practice and no Material Adverse Effect has occurred since October 1, 2023. The Company Financial Statements (i) comply as to form in all material respects with the requirements of Applicable Securities Laws; (ii) have been prepared in conformity with IFRS, consistently applied throughout the periods covered thereby, and all adjustments necessary for a fair presentation of the results for such periods have been made in all material respects; (iii) fairly present the consolidated financial condition of the Company as at the respective dates thereof; (iv) contain no misrepresentations and fairly present the consolidated results of operations, cash flow and income of the Company during the respective fiscal periods covered thereby; and (v) contain and reflect adequate provision or allowance for all reasonably anticipated liabilities, expenses and losses of the Company. Other than as disclosed in the Company Financial Statements (including any notes thereto), there are no off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the Company with unconsolidated entities or other persons that have or could reasonably be expected to have a Material Adverse Effect. There has been no change in accounting policies or practices of the Company other than as set out in the Company Financial Statements. For purposes of this Section 3.1(n), "Company Financial Statements" means the audited consolidated financial statements of the Company for the financial years ended September 30, 2023 and 2022 and the unaudited consolidated financial statements of the Company for the nine months ending June 30, 2024 and 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Kingston Ross Pasnak LLP, the Company's current auditors, who audited the Company Financial Statements and who provided their audit report thereon, are independent public accountants as required under Applicable Securities Laws and there has never been a reportable event (within the meaning of National Instrument 51-102 - *Continuous Disclosure Obligations)* between the Company and Kingston Ross Pasnak LLP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The audit committee of the board of directors of the Company is comprised and operates in accordance with the requirements of National Instrument 52-110 *-Audit Committees.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) TSX Trust Company has been duly appointed by the Company as the registrar and transfer agent for the Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To the best of its knowledge, there are no material facts or material changes related to the Company that have not been generally described to the Purchaser. Without limiting the generality of the foregoing, since October 1, 2023, the Company has carried on business in the ordinary course, and except as disclosed in the Corporation's Information Record, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any material change in the consolidated assets, properties, capital, liabilities or obligations (absolute, accrued, contingent or otherwise), business, business prospects, affairs, condition (financial or otherwise) or results of operations of the Corporation, or any transactions entered into which are material with respect to the Company on a consolidated basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any material change in the share capital or long-term debt of the Company, other than as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any declaration, setting aside or payment of any dividend, or other distribution with respect to any shares in the capital of the Company, or any direct or indirect redemption, purchase or other acquisition of any shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the incurrence of any material capital expenditure or the making of any commitment therefor, or the incurrence of any obligation or liability, direct or indirect, contingent or otherwise, which individually, or in the aggregate, is material to the Company on a consolidated basis, other than in the ordinary course of business of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any change in accounting or tax policies or practices followed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Insolvency

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company is not an "insolvent person", has not committed an "act of bankruptcy", in each case, within the meaning of the *Bankruptcy and Insolvency Act* (Canada) and has not sought protection from the creditors thereof before any court or pursuant to any legislation, proposed a compromise or arrangement to the creditors thereof generally, taken any act or undertaken or become subject to a proceeding with respect to a compromise or arrangement, taken any act or undertaken or become subject to or have been threatened with a proceeding to be declared bankrupt, made any assignment for the benefit of its creditors, had any person holding any lien or receiver take possession of any of the property thereof, had an execution or distress become enforceable or levied upon any portion of the property thereof or had or have been threatened with any petition for a receiving order in bankruptcy filed against it or to declare it bankrupt or insolvent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No administrator, administrative receiver or any other receiver, receiver-manager or manager has been appointed or threatened to be appointed by any person in respect of the Company or all or any of its assets and, to the knowledge of the Company, no steps have been taken to initiate any such appointment. No analogous appointments have been made or initiated under any laws applying to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No order has been made, no resolution has been passed and no petition has been filed or threatened against the Company for the winding up, dissolution or liquidation of the Company, or for a provisional liquidator to be appointed in respect of the Company and no petition has been presented or threatened and no meeting has been convened for the purpose of the winding up, dissolution or liquidation of the Company. The Company is not subject to analogous proceedings under any laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Except as disclosed in the Company's Information Record, the Company has not approved or entered into any agreement in respect of, and has no knowledge of: (a) the purchase of material assets or any interest therein or the sale, transfer or other disposition of any material portion of its assets or any interest therein currently owned, directly or indirectly, by the Company whether by asset sale, transfer of shares or otherwise; (b) the change of control (by sale or transfer of shares or sale of all or substantially all of the property and assets of the Company) of the Company; or (c) a proposed or planned disposition of Common Shares by any shareholder who owns, directly or indirectly, 10% or more of the outstanding Common Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company has paid when due all applicable taxes of whatsoever nature for all tax years prior to the date hereof to the extent that such taxes have become due or have been alleged to be due. The charges, accruals and reserves on the books of the Company in respect of any liability for taxes for any year not finally determined are sufficient to meet any reasonable assessment or reassessment for additional taxes for any year not finally determined. The Company has duly and timely filed or caused to be filed within the times and within the manner prescribed by law, all federal, provincial, local and foreign tax returns and reports which are required to be filed by or with respect to the Company, such returns and reports are true, complete and correct in all material respects, and there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by the Company or the payment of any material tax, governmental charge, penalty, interest or fine against any of them. The Company is not delinquent in the payment of any taxes. There are no pending tax audits of any returns of taxes. No deficiency or addition to any taxes or interest or penalty for any taxes has been proposed, asserted or assessed against the Company. The Company has duly and timely withheld or collected and remitted to the appropriate taxing authority (or made adequate provision for the remittance of) all amounts required by law to be withheld or collected and remitted by it in respect of any taxes, governmental charges or assessments. There are no material actions, suits, proceedings, investigations or claims now threatened or, to the knowledge of the Company, pending against the Company which could result in a material liability in respect of taxes, charges or levies of any governmental authority, penalties, interest, fines, assessments or reassessments or any matters under discussion with any Governmental Authority relating to taxes, governmental charges, penalties, interest, fines, assessments or reassessments asserted by any such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company is not a party to or bound or affected by any commitment, agreement or document containing any covenant which expressly limits the freedom of the Company to compete in any line of business, transfer or move any of its assets or operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Other than as disclosed in the Company's Information Record, the Company has not guaranteed or otherwise given security for or agreed to guarantee or give security for any liability, debt or obligation of any other person. The Company does not have any material liabilities, obligations, indebtedness or commitments whether accrued, absolute, contingent or otherwise, which are not disclosed or referred to in the Company's Information Record, other than liabilities, obligations or indebtedness or commitments incurred after the last period covered by the Company's Information Record in the normal course of business or in connection with the purchase and sale herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company is not in violation of its constating documents. None of the purchase and sale herein, the execution, delivery and performance of this Agreement, the compliance by the Company with the terms hereof, or the consummation of the transactions contemplated herein, including, without limitation, the issuance and sale of the Securities, does or will:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require approval, authorization, consent, order or agreement of, or filing, registration, qualification or recording with, any governmental agency, body or authority, court, stock exchange, securities regulatory authority or other person, except as have already been obtained or may be required under Applicable Securities Laws and the policies of the CSE and will be obtained prior to the Closing Date (other than customary post-closing filings required to be submitted within the applicable time frame pursuant to Applicable Securities Law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any material respect (in the cases of (3) to (5)): (A) result in any breach or violation; (B) be in conflict with; (C) constitute a default under; (D) give rise to a right of termination, cancellation or acceleration of any obligation; (E) result in the loss of or lien upon any of the consolidated properties or assets of the Company; or (F) create a state of facts which (after notice or lapse of time or both) would give rise to any of the foregoing, in each case, under:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the articles or by-laws of the Company, or any other constating document of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any resolution passed by the directors (or any committee thereof) or shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any statute, law or any judgment, decree, order, rule, policy or regulation of any court, Governmental Authority, arbitrator, stock exchange or securities regulatory authority applicable to the Company or any of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any contract, agreement, or indenture to which the Company is a party or is bound or by which any of their respective properties or assets are bound (including any indentures, mortgages, deeds of trust, leases or other agreements or instruments); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any authorization held or obtained by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the Company defaulting on the payment of any material obligation owed by it which is now due; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) trigger any change of control provisions, or other contingent payments, in any agreements the Company is party to, nor will the Company's board pass a resolution that states that the transactions carried out in connection with this Agreement constitutes a change of control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Other than as disclosed in the Information Record, none of the directors or officers of the Company are now, or have ever been: (a) subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from acting as a director or officer of a public company or of a company listed on a particular stock exchange; or (b) subject to an order preventing, ceasing or suspending trading in any securities of the Company or other public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Employees and Employment Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All material employment agreements, consulting agreements, severance agreements and change of control agreements in respect of any NEOs (as defined in Form 51102F6 - *Statement of Executive Compensation),* and all Employee Plans have been, in all material respects, disclosed in the Information Record to the extent required under Applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company is in compliance in all material respects with all laws respecting employment and employment practices, terms and conditions of employment, occupational health and safety, pay equity and wages, and has not and is not engaged in any unfair labour practice, and there are no current or pending claims, complaints, notices, outstanding decisions, orders or settlements under any human rights legislation, employment standards legislation, workers' compensation legislation, occupational health and safety legislation or similar legislation, nor has any event occurred which would reasonably be expected to give rise to any of the foregoing. The Company has not received any notice of any unresolved matter and there are no outstanding orders under any employment or human rights legislation in any jurisdiction in which the Company carries on business or has employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each plan for retirement, bonus, stock purchase, profit sharing, stock option, deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation, legal benefits, unemployment benefits, vacation, pension, incentive or otherwise contributed to, or required to be contributed to, by the Corporation for the benefit of any current or former director, officer, employee or consultant of the Corporation (collectively, the <u>"Employee Plans"),</u> has been maintained in material compliance with its terms and with the requirements prescribed by any and all laws that are applicable to such plan. The Company has no, nor has it ever had, any pension plan (as such term is defined in the relevant legislation of the applicable jurisdiction).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All material accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, federal, provincial or local pension plan premiums, accrued wages, salaries and commissions and payments for any plan for any officer, director, employee or consultant of the Company have been accurately reflected in the books and records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) There is no labour disruption, strike, dispute, slowdown, stoppage or conflict involving the Company, and there is no complaint or grievance pending or, to the knowledge of the Company, threatened from any labour groups. The Company is not party, or otherwise subject to, any collective bargaining agreement and no collective bargaining agreement is currently being negotiated by the Company. There has not been, and there is not currently, any other labour trouble which is having a Material Adverse Effect or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Company owns or possesses adequate enforceable rights to use all trademarks, copyrights and trade secrets, if any, used or proposed to be used in the conduct of its business and, to the knowledge of the Company, the Company is not infringing upon the rights of any other person with respect to any such trademarks, copyrights or trade secrets and no other person has infringed any such trademarks, copyrights or trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Except as disclosed in the Information Record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none of the directors, officers or employees of the Company, any known holder of more than 10% of any class of shares of the Company, or any known associate or affiliate of any of the foregoing persons (as such terms are defined in the *Securities Act* (Ontario)), has had any material interest, direct or indirect, in any material transaction, within the previous two years or has any material interest in any proposed material transaction involving the Company which, as the case may be, materially affected, is material to or will materially affect the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the knowledge of the Company, no insider of the Company (as defined in Applicable Securities Laws) has a present intention to sell any securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of the Corporation, except as disclosed on SEDI, no insider of the Corporation (as defined in applicable Securities Laws) has sold any securities issued by the Company or otherwise taken steps to reduces its, his or her financial exposure to the price or value of the Common Shares within the 15 days prior to the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except for usual director, employee or consulting arrangements made in the ordinary and normal course of business, the Company is not party to any contract or understanding with any director, officer, employee, securityholder or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no director, officer or employee of the Corporation and no person which is an affiliate or associate of the Company, owns, directly or indirectly, any interest in (except for equity securities as disclosed in the Company's Information Record), or is a director, officer employee or consultant of any person which is, or is engaged in, a business competitive with the Company, which materially adversely impacts, or would reasonably be expected to materially and adversely impact, their ability to duly properly perform the services to be performed by such person for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Company does not owe any monies to, have any present loans to, nor has it borrowed any monies from or is otherwise indebted to, any director, officer, employee, securityholder of the Company, or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with the Company, except for usual employee reimbursements and compensation paid in the ordinary and normal course of its business; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to the knowledge of the Company, no director, officer employee or securityholder of the Company has any cause of action or other claim whatsoever against, or owes any amount to, the Company, except for claims in the ordinary and normal course of the business of the Company such as for accrued vacation pay or other amounts or matters which would not be material to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) The properties and assets in which the Company has a direct or indirect economic interest are insured against loss or damage in such amounts that are customary for the business in which they are engaged with responsible insurers on a basis consistent with insurance obtained by reasonably prudent participants in comparable businesses, and such coverage is in full force and effect, and the terms of any policies in respect thereof have not been breached and the insured has not failed to promptly give any notice or present any material claim thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) None of the Company nor, to the knowledge of the Company, any director, officer, employee, consultants, representative, agent or affiliate or other person acting on behalf of the Company, is aware of or has taken any action, directly or indirectly, that would reasonably be expected to result in a violation by such persons of the *United States Foreign Corrupt Practices Act of 1977,* as amended, and the rules and regulations thereunder, the *Corruption of Foreign Public Officials Act* (Canada), as amended or the similar laws of any other jurisdiction applicable to the Company (collectively, the <u>"Anti-Corruption Laws")</u> and the Company has conducted its businesses in compliance with the Anti-Corruption Laws and has instituted and maintains policies and procedures designed to ensure continued compliance therewith. There are no proceedings under any Anti-Corruption Laws pending against the Company or, to the knowledge of the Company, threatened against or affecting the Company. None of the Company, nor to the knowledge of the Company, any director, officer, employee, consultant, representative or agent of the foregoing, has: (a) conducted or initiated any review, audit, or internal investigation that concluded the Company, or any director, officer, employee, consultant, representative or agent of the foregoing violated any anti-bribery or anticorruption laws or committed any material wrongdoing; or (b) made a voluntary, directed, or involuntary disclosure to any Governmental Authority responsible for enforcing anti-bribery or anti-corruption laws, in each case with respect to any alleged act or omission arising under or relating to non-compliance with any such laws, or received any notice, request, or citation from any person alleging non-compliance with any such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) The operations of the Company are, and have been conducted at all times in compliance with the financial record-keeping and reporting requirements of anti-money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority to which the Company is subject, including the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (collectively, the <u>"Money Laundering Laws"),</u> and no action, suit or proceeding by or before any Governmental Authority or body or arbitrator involving the Company or with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) None of the Company, nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company is currently the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control, the United Nations Security Council, the European Union, His Majesty's Treasury, or other relevant sanctions authority (collectively, <u>"Sanctions"),</u> nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the purchase and sale hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity: (a) to fund any activities of or business with any person or entity, or in any country or territory, that, at the time of such funding, is the subject of Sanctions; or (b) in any other manner that will result in a violation by any person or entity (including any person or entity participating in the transaction, whether as agent, advisor, investor or otherwise) of Sanctions. The Company has not knowingly engaged in and is not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any country that is subject to Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) The Company is not required to be registered as an investment company under the United States *Investment Company Act* of 1940, as amended, and is not relying on any exemption therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) To the knowledge of the Company, the Company has not withheld from the Purchaser any fact or information relating to the Company or any of the transactions contemplated hereby that would be material to a reasonable prospective investor in the Company. No representation or warranty by the Company in this Agreement and no statement contained in the Company's Information Record or any certificate or other document furnished or to be furnished to the Purchaser under this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Representations and Warranties of the Purchaser.</u> The Purchaser hereby makes the following representations and warranties to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has the legal capacity to enter into and be bound by this Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Purchaser enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the entering into of this Agreement and the transactions contemplated hereby will not, in any material respect, result in a violation of any of the terms or provisions of, any law applicable to the Purchaser, or any agreement to which the Purchaser is a party or by which it is bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Purchaser has not received or been provided with, nor has the Purchaser requested, nor does the Purchaser have any need to receive, any prospectus or offering memorandum, or any other document describing the business and affairs of the Company which has been prepared for delivery to, and review by, prospective purchasers in order to assist the Purchaser in making an investment decision in respect of the acquisition contemplated hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Purchaser has not become aware of any advertisement in printed media of general and regular paid circulation (or other printed public media), radio, television or telecommunications or other form of advertisement (including electronic display) with respect to the distribution of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it has relied solely upon information publicly available on SEDAR+ relating to the Company and not upon any verbal or written representation as to fact or otherwise made by or on behalf of the Company (except as set forth herein) and it does not have knowledge of any material fact about the Company that has not been publicly disclosed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if the Purchaser is a U.S. Purchaser, at the time the Purchaser was offered the Debentures and Warrants, it was, and as of the date hereof it is, an Institutional Accredited Investor and has completed, executed and delivered the Company Exhibit "A" hereto and makes the representations and warranties contained therein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Purchaser acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no securities or similar regulatory authority has reviewed or passed on the merits of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there is no government or insurance covering the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there are risks associated with the purchase of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there are restrictions on the Purchaser's ability to resell the Securities and it is the responsibility of the Purchaser to find out what those restrictions are and to comply with them before selling any of the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company or its agent has advised the Purchaser that the Company is relying on an exemption from the requirements to provide the Purchaser with a prospectus and to sell the Securities through a person or company registered to sell securities under Applicable Securities Laws and, as a consequence of acquiring the Securities pursuant to these exemptions, certain protections, rights and remedies provided by Applicable Securities Laws, including statutory rights of rescission or damages, will not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it acknowledges that no representation has been made to it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to the future value or price of the Securities";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any person will resell or repurchase the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that any person will refund the purchase price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Company may complete additional financings in the future in order to develop the business of the Company and to fund its ongoing development; that there is no assurance that such financings will be available and, if available, on reasonable terms; any such future financings may have a dilutive effect on current securityholders, including the Purchaser; and that if such future financings are not available, the Company may be unable to fund its ongoing development and the lack of capital resources may result in the failure of its business venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) it has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and it, or, where it is not purchasing as principal, each beneficial purchaser, is able to bear the economic risk of loss of its investment and the Purchaser is capable of assessing the proposed investment as a result of the Purchaser's financial experience or as a result of advice received from a registered person other than the Company or any affiliates hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) it understands that the Securities are being offered for sale only on a "private placement" basis and that the sale and delivery of the Securities is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or the preparation of an offering memorandum in prescribed form or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum in prescribed form and that certain protections, rights and remedies provided by applicable securities legislation, in connection with the filing of a prospectus may not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if required by applicable securities legislation, regulations, rules, policies or orders or by any securities commission, stock exchange or other regulatory authority, the Purchaser will execute, deliver, file and otherwise assist the Company in filing, such reports, undertakings and other documents with respect to the issue of the Securities as may be required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) it will not resell the Securities or any of them, except in accordance with the provisions of the Applicable Securities Laws and the rules of the CSE or such other Trading Market as the Common Shares trade on at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the funds representing the Subscription Amount advanced by the Purchaser will not be proceeds of crime under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the <u>"PCMLTFA")</u> or the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, as may be amended from time to time (the <u>"PATRIOT</u> Act"). The Purchaser acknowledges that the Company may be required by law to confidentially disclose the Purchaser's information pursuant to the PCMLTFA and the PATRIOT Act. To the best of the Purchaser's knowledge: (i) the funds representing the Subscription Amont are not derived from criminal activity in any jurisdiction; (ii) the funds representing the Subscription Amount are not being provided on behalf of an unidentified person or entity to the Purchaser; and (iii) the Purchaser shall promptly notify the Company if this representation becomes untrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) it has been independently advised as to the restrictions with respect to trading in the Securities imposed by applicable securities legislation, confirms that no representation has been made to it by or on behalf of the Company with respect thereto, acknowledges that it is aware of the characteristics of the Securities, the risks relating to an investment therein and of the fact that it may not be able to resell the Securities except in accordance with limited exemptions under applicable securities legislation and regulatory policy until expiry of the applicable restriction period and compliance with the other requirements of applicable law, and it agrees that any certificates representing the Securities may bear such legends as are required under applicable securities law and/or policies of applicable securities exchanges indicating that the resale of such securities is restricted; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Purchaser acknowledges that it has been encouraged to and should obtain independent legal, income tax and investment advice with respect to its hereunder and accordingly, has been independently advised as to the meanings of all terms contained herein relevant to the Purchaser for the purposes of giving representations, warranties and covenants under this Agreement.

**ARTICLE IV.**

**OTHER AGREEMENTS OF THE PARTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Transfer Restrictions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, Rule 904 or Rule 144 (if available), or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchaser acknowledges that the Company may be required to file with the Canadian Securities Administrators in Ontario a report regarding the trade. The Purchaser acknowledges that such report may require the Company to disclose the Purchaser's full legal name, residential address, telephone number and email address and the number of Securities the Purchaser purchased, the purchase price for such Securities and specific details of the prospectus exemption relied upon under applicable securities laws to complete such purchase, including how the Purchaser qualifies for such exemption. The Purchaser consents to the disclosure of such information and acknowledges that such information is made available to the public under securities legislation of Ontario. The Purchaser acknowledges that this information is collected indirectly by the applicable securities regulatory authority or regulator under the authority granted to it under, and for the purposes of the administration and enforcement of, the securities legislation and that the Purchaser may contact the applicable securities regulatory authority or regulator by way of the following information for more information regarding the indirect collection of such information: Ontario Securities Commission, 20 Queen Street West, 22nd Floor Toronto, Ontario M5H 3S8, Telephone: (416) 593- 8314, Toll free in Canada: 1-877-785-1555, Facsimile: (416) 593-8122, <u>Email: exemptmarketfilings@osc.gov.on.ca,</u> Public official contact regarding indirect collection of information: Inquiries Officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Integration.</u> The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities hereunder or that would be integrated with the offer or sale of the Securities hereunder for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval of the sale of the Securities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Securities Laws Disclosure; Publicity.</u> The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a material change report under the Applicable Securities Laws, with the Canadian Securities Administrators within the time required by the Applicable Securities Laws. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly disclosed all material, nonpublic information delivered to the Purchaser by the Company, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Listing of Common Shares.</u> The Company hereby agrees to use commercially reasonable efforts to maintain its status as a "reporting issuer" (or the equivalent thereof) in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, not be in default in respect of the Applicable Securities Laws and the listing or quotation of the Common Shares on a Trading Market, and concurrently with the Closing, the Company shall have secured the listing of all of the Debenture Shares and Warrant Shares on the CSE and will secure the listing of all Interest Shares on the CSE. The Company further agrees, if the Company applies to have the Common Shares traded on any other Trading Market, it will then include in such application all of the Debenture Shares, Warrant Shares and Interest Shares, and will take such other action as is necessary to cause all of the Debenture Shares, Warrant Shares and Interests Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Shares on a Trading Market and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Shares for electronic transfer through CDS, including, without limitation, by timely payment of fees to CDS in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Certain Transactions and Confidentiality.</u> The Purchaser covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company's securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4. The Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, the Purchaser will maintain the confidentiality of the existence and terms of this transaction. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser does not make any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4, (ii) the Purchaser shall not be hereby restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Form D; Blue Sky Filings.</u> If any of the Securities are issued to a U.S. Purchaser pursuant to Rule 506(b) of Regulation D under the Securities Act, the Company agrees to timely file a Form D with respect to the Securities as required under Regulation D under the Securities Act and to provide a copy thereof, promptly upon request of the U.S. Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the U.S. Purchaser at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the U.S. Purchaser. The Company also agrees to make all required filings under Applicable Securities Laws in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>PFIC Matters.</u> If a U.S. Purchaser so requests in writing for any taxable year of the Company, the Company, after consulting with its outside accounting firm, shall within 15 days notify the U.S. Purchaser in writing that either (A) the Company was not a PFIC for such year, or (B) the Company was a PFIC for such year, in which event the Company shall provide to the U.S. Purchaser, upon the reasonable written request of the U.S. Purchaser, the information reasonably necessary to allow the U.S. Purchaser to elect to treat each of the Company as a "qualified electing fund" (within the meaning of Code Section 1295) for such year, including a "PFIC Annual Information Statement" as described in U.S. Treasury Regulation Section 1.1295-1(g)(1) (or any successor Treasury Regulation). For purposes hereof, "PFIC" means a "passive foreign investment company" within the meaning of Section 1297(a) of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Registration Rights.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than 180 days after the earlier of (i) the consummation of a ReIPO and (ii) the Registration Date, the Company shall, at its expense, use its reasonable best efforts to qualify and remain qualified to register the offer and sale of securities under the Securities Act pursuant to a Registration Statement on Form F-10 or any successor form thereto using a Canadian short-form prospectus under MJDS (or if eligible, on Form S-3 or F-3 or any successor form thereto). At such time as the Company shall have qualified for the use of a Registration Statement on such Form, the holders of Registrable Securities shall have the right to request an unlimited number of registrations under the Securities Act of all or any portion of their Registrable Securities pursuant to a Registration Statement on such Form or any similar short-form Registration Statement (each, a <u>"Short-Form Registration").</u> Each request for a Short-Form Registration shall specify the number of Registrable Securities requested to be included in the Short-Form Registration. Upon receipt of any such request, the Company shall promptly (but in no event later than 10 days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have five days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall prepare and file with (or confidentially submit to) the Commission a Registration Statement on such Form covering all of the Registrable Securities that the holders thereof have requested to be included in such Short-Form Registration within five days after the date on which the initial request is given and shall use its reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, but not later than the Target Filing Date, the Company shall, at its expense, (i) prepare and file with (or confidentially submit to) the Commission a Registration Statement on Form F-10 a Canadian shelf prospectus under MJDS (or if eligible, on Form S-3 or F-3) or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration Statement")</u> that covers all Registrable Securities then outstanding for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration")</u> and (ii) use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as practicable thereafter. For purposes hereof, <u>"Target Filing Date"</u> shall mean the date which is 20 days after the Company becomes qualified to register the offer and sale of securities under the Securities Act pursuant to a Shelf Registration Statement. If, after the filing of a Shelf Registration Statement, a holder of Registrable Securities requests registration under the Securities Act of additional Registrable Securities pursuant to such Shelf Registration, the Company shall amend such Shelf Registration Statement to cover such additional Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the registration of the Registrable Securities, the Company shall provide to the Purchaser customary indemnification in connection with such registration, including with respect to liabilities under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Reports Under Exchange Act.</u> As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, with a view to making available to the Purchaser the benefits of Rule 144 under the Securities Act and any other rule or regulation of the SEC that may at any time permit the Purchaser to sell securities of the Company to the public without registration or pursuant to a registration on Form F-3 or S-3, the Company shall: (a) make and keep available adequate current public information, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date of the registration statement filed by the Company for any ReIPO; (b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); (d) (i) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith upon request (A) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of Rule 144 under the Securities Act, the Securities Act, and the Exchange Act, or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 or S-3 (at any time after the Company so qualifies); and (B) such other information as may be reasonably requested in availing any Purchaser of any rule or regulation of the SEC that permits the selling of any such securities without registration, without qualification pursuant to a Canadian prospectus or pursuant to Form F-3 or S-3 (at any time after the Company so qualifies to use such form); and (ii) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith, but in any event within five days following the receipt of a lawful and contractually permitted request therefor, unlegended share certificates in connection with sales of Registrable Securities by the Purchaser pursuant to Rule 144 under the Securities Act, or furnish to the Company's transfer agent an opinion of counsel that such unlegended share certificates may be issued.

**ARTICLE V.**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Fees and Expenses.</u> Each party shall pay the fees and expenses of its

advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery, and performance of this Agreement; provided, however, that the Company shall pay the reasonable and documented fees and expense of the Purchaser's Canadian legal counsel in connection with the transactions contemplated by this Agreement, up to a maximum of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Entire Agreement.</u> The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Notices.</u> Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (EST) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (EST) on any Trading Day, (c) the second (2n<sup>d</sup>) Trading Day following the date of mailing, if sent by United States nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Amendments; Waivers.</u> Any amendments hereto or waivers in respect hereof shall only be effective if made in writing and executed by the parties thereto. No waiver shall constitute a waiver of any other provision or act as a continuing waiver unless such is expressly provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Headings.</u> The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Successors and Assigns.</u> This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>No Third-Party Beneficiaries.</u> This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Governing Law.</u> The Agreement shall be by and interpreted in accordance with the laws of the Province of Ontario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Survival.</u> The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Execution.</u> This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf' signature page were an original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Severability.</u> If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Saturdays, Sundays, Holidays, etc.</u> If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Construction.</u> The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and Common Shares in any Transaction Document shall be subject to adjustment for reverse and forward share splits, share dividends, share combinations and other similar transactions of the Common Shares that occur after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Currency.</u> All references to currency herein shall be deemed to refer to Canadian dollars.

*(Signature Pages Follow)*

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

SOL STRATEGIES INC.<br>

By: <u>*(signed) "Leah Wald"*</u> <br> Name: Leah Wald<br> Title: Chief Executive Officer

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK <br>SIGNATURE PAGE FOR PURCHASER FOLLOWS]

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[PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Purchaser: <u>ParaFi Venture Fund II LP, by ParaFi Capital LP, its investment manager</u> 

*Signature of Authorized Signatory of Purchaser:* <u>*(signed) "Adrian Uberto"*</u>

Name of Authorized Signatory: <u>Adrian Uberto</u> 

Title of Authorized Signatory: <u>Chief Operating Officer</u> 

<u>***[Redacted - Contact Information]***</u>

Email Address of Authorized Signatory: <br>Address for Notice to Purchaser:

c/o ParaFi Capital LP<br>***[Redacted - Contact Information]***<br> Email: ***[Redacted - Contact Information]***

Subscription Amount: $3,571,429.00 <br>Convertible Debenture Units: 3,571.429

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Schedule 3.1(e)

<u>Share Capital Summary</u>

The authorized share capital of the Company consists of an unlimited number of Common Shares, of which 150,169,520 Common Shares were issued and outstanding as of January 7, 2025. As of the date of this Agreement, the Company has 12,673,221 stock options and 563,669 restricted share units outstanding, each stock option and restricted share unit exercisable for or vesting into one Common Share.

The following persons hold the Common Shares listed below, which is a complete list of holders of 5.0% or more of the Common Shares as of the date of this Agreement:

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| | | |
|:---|:---|:---|
| **Name** | **Number of Common Shares<br>Held** | **% of Common Shares**<br>**owned (undiluted)** |
| Antanas Guoga | 53923787 | 36.2 |
| &nbsp;&nbsp;*(Redacted - Commercially Sensitive Confidential Information)* | 9200000 | 6.2 |

---

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**EXHIBIT "A"**

**U.S. Accredited Investor Confirmation Certificate**

**(For U.S. Purchasers that are Institutional Accredited Investors)**

Reference made to the Securities Purchase Agreement by and among Sol Strategies Inc. (the "Company"), the undersigned (also referred to herein as the "Purchaser"), and certain other purchasers, for the purchase of certain Securities of Company (the "Agreement"). Terms not otherwise defined herein have the meanings ascribed to them in the Agreement.

The Purchaser understands and agrees that the Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any applicable securities laws of any state of the United States, and the Securities are being offered and sold by the Company to the Purchaser in reliance upon Rule 506(b) of Regulation D under the Securities Act ("Regulation D**")** and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;(A) Representations and Warranties. The undersigned represents, warrants and covenants (which representations, warranties and covenants shall survive the Closing) to the Company (and acknowledges that the Company is relying thereon) that the Purchaser is an Institutional Accredited Investor, and satisfies one or more of the categories indicated below (please initial on the appropriate line or lines), and is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Category 1. A bank, as defined in Section 3(a)(2) of the Securities Act, whether acting in its individual or fiduciary capacity; a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States *Securities Exchange Act of 1934;* an investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; an investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission under section 203(1) or (m) of the United States *Investment Advisers Act of 1940;* an insurance company as defined in Section 2(a)(13) of the Securities Act; an investment company registered under the United States *Investment Company Act of 1940;* a business development company as defined in Section 2(a)(48) of the United States *Investment Company Act of 1940;* a small business investment company licensed by the United States Small Business Administration under Section 301(c) or (d) of the United States *Small Business Investment Act of 1958;* a rural business investment company as defined in section 384A of the United States *Consolidated Farm and Rural Development Act;* a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of US$5,000,000; or an employee benefit plan within the meaning of the United States *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors as defined in Rule 501(a) of Regulation D ("Accredited Investor"); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Category 2. A private business development company as defined in Section 202(a)(22) of the United States *Investment Advisers Act of 1940;* or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Category 3. An organization described in Section 501(c)(3) of the United States *Internal Revenue Code,* a corporation, a Massachusetts or similar business trust, a partnership, or a limited liability company, not formed for the specific purpose of acquiring the Securities, with total assets in excess of US$5,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Category 7. A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Category 8. An entity in which all of the equity owners are Accredited Investors; or

*[If you checked Category 8, please indicate the name and category of Accredited Investor (by reference to the applicable subparagraph set forth in Rule 501(a) of Regulation D) of each equity owner:*

<u>Name of Equity Owner</u> <u>Category of Accredited Investor</u> <br>    

*It is permissible to look through various forms of equity ownership to natural persons in determining the Accredited Investor status of entities under this category. If those natural persons are themselves Accredited Investors, and if all other equity owners of the entity seeking Accredited Investor status are Accredited Investors, then this category will be available.]*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Category 9. An entity, of a type not listed in Categories 1, 2, 3, 7 or 8, not formed for the specific purpose of acquiring the Securities, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the United States *Investment Company Act of 1940);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Category 12. Any "family office," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940:* (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the Securities, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Category 13. A "family client," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940,* of a family office meeting the requirements set forth in Category 12 above and whose prospective investment in the Company is directed by such family office with the involvement of the Knowledgeable Family Office Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;(B) Restrictions on Transferability of Securities. The undersigned realizes that the Securities and the Common Shares issuable upon exercise of the Warrants are not, and will not be, registered under the Securities Act, will be "restricted securities" as defined in Rule 144 thereunder, and the offer and sale of such Securities to it are being made in reliance upon Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States. The undersigned also understands that the Company has not agreed to register the Securities for distribution in accordance with the provisions of the Securities Act or any applicable state securities laws, that the Company has not agreed to comply with any exemption under the Securities Act or any such laws for the resale of the Securities, and that certain resale provisions of that regulation may not be available to the undersigned unless certain conditions are satisfied. Hence, the undersigned understands that, by virtue of the provisions of certain rules promulgated under the Securities Act and relating to "restricted securities," the Securities which the undersigned has subscribed for hereby may need to be held indefinitely, unless and until subsequently registered under the Securities Act and/or applicable state securities laws, or unless an exemption from registration is available, in which case the undersigned may still be limited with respect to the extent to which such Securities may be transferred, and that all certificates or statements evidencing such Securities shall bear, and be subject to the conditions of, the following legend(s), as applicable:

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**THE SECURITIES REPRESENTED HEREBY** ***[for Debentures, add:*** **AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF]** ***[for Warrants, add:*** **AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1)(I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

***[for Warrants add:*** **THE WARRANT REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."]**

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*provided,* that if, the Securities are being sold in compliance with the requirements of Rule 904 and in compliance with applicable local laws and regulations, and provided that the Securities were issued when the Company qualified as a "foreign issuer" (as defined in Rule 902(e) of Regulation S under the Securities Act), the legend may be removed by providing a customary declaration to the Company and to its transfer agent, in the form attached hereto as Appendix I or as may be reasonably required by the Company or the transfer agent;

*provided further,* if any of the Securities are being sold pursuant to Rule 144, if available, the legend shall be removed by delivering to the Company and the transfer agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent, to the effect that the legend is no longer required under applicable requirements of the Securities Act.

The undersigned agrees that by accepting the Securities it shall be representing and warranting that the representations and warranties above are true as at the Closing with the same force and effect as if they had been made by it at the Closing and that they shall survive the purchase by it of the Securities and shall continue in full force and effect notwithstanding any subsequent disposition by it of the Securities.

The foregoing representations and warranties are true and accurate as of the date of this U.S. Accredited Investor Confirmation Certificate and will be true and accurate as of the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants. If any such representations and warranties shall not be true and accurate prior to the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants, the Purchaser shall give immediate written notice of such fact to the Company and to the Placement Agent.

**DATED** as of January 8, 2025.

**PARAFI VENTURE FUND II LP, by <br>PARAFI CAPITAL LP, its** *investment manager*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>*(signed) "Adrian Uberto"*</u>

Name: Adrian Uberto

Title: Chief Operating Officer

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**Appendix I to Exhibit "A" - U.S. Accredited Investor Confirmation Certificate** <br>**Declarations for Removal of Legend**

**To: TSX Trust Company, as Registrar and Transfer Agent for the Common Shares of Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of _______________ (Securities), represented by the Issuer's certificate number ______________, to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

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| | | |
|:---|:---|:---|
|  |  | Date: |
| By: | Signature |  |
| Name: | (please print) |  |

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**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer, _________________________ (the "Seller"), dated ___________________________, with regard to our sale, for such Seller's account, of the ___________________ (Securities), represented by certificate number _____________ of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

**Name of Firm**

By: ______________________________________ <br> Authorized Officer

&nbsp;&nbsp;&nbsp;&nbsp;Date: ______________________________________

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**EXHIBIT "B" <br>(see attached)**

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

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| | |
|:---|:---|
| **Certificate CD-2025-01** | **Principal Sum $27,500,000** |
| Dated and effective January [•], 2025 |  |

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 <u>**UNSECURED CONVERTIBLE DEBENTURE**</u>

**SOL STRATEGIES INC.**

**NOW THEREFORE** for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company hereby covenants, agrees and declares as follows**:**

**ARTICLE 1**<br> <u>**INTERPRETATION**</u>

1.1 <u>**Definitions.**</u> In this Debenture, including the preamble, unless there **is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Attribution Parties**" means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - Take Over Bids and Issuer Bids

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**CDS**" means CDS Clearing and Depository Services Inc.;

(d**) "Common Shares"** means the common shares of the Company as such shares are constituted on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Company"** means Sol Strategies Inc. and its legal successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Conversion Date**" has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Conversion Notice**" has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Conversion Price**" means the price per Common Share at which all or a portion of the Principal Sum outstanding under this Debenture shall from time to time be convertible into Common Shares pursuant to a Holder Conversion, being a price of $2.50 per Common Share, being a ratio of 400 Common Shares per $1,000.00 of Principal Sum, subject to certain adjustments as provided herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **"Convertible Securities"** means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Company or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **"CSE"** means Canadian Securities Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **"Current Market Price"** at any date means the VWAP of the Common Shares on the Principal Stock Exchange during the 20 consecutive Trading Days ending on the Trading Day immediately preceding such date, where the VWAP is determined by dividing the aggregate sale price of all Common Shares sold during that period by the total number of Common Shares sold during that period and, if no such prices are available, "Current Market Price" will be the Fair Market Value per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **"Debenture"** means this unsecured convertible debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **"Default Rate"** means the Interest Rate plus 5.0% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **"Directors"** means the persons who are the directors of the Company at the date of any event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Event of Default"** means any of the events specified in Section 6.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"Exchange Act"** means the Securities Exchange Act of 1934, as amended;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"Excluded Taxes"** means, with respect to the Holder or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder (each, a **"Recipient"),** (a) Taxes imposed on or measured by a Recipient's net income, capital Taxes and franchise Taxes imposed on a Recipient (in lieu of net income Taxes), in each case, (i) by the jurisdiction (or any political subdivision thereof) under the laws of which such Recipient is organized or in which its principal office is located, or (ii) as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax, (b) any branch profits Taxes or any similar Tax imposed by any jurisdiction described in clause (a) in which such Recipient is located, (c) Taxes imposed under FATCA, (d) any withholding Taxes imposed on a payment by or on account of any obligation of the Company hereunder: (i) to a person with whom the Company does not deal at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of making such payment or (ii) in respect of a debt or other obligation to pay an amount to a person with whom the Company is not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of such payment, (e) any Taxes imposed on a Recipient by reason of: (i) such Recipient being a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, (ii) such Recipient not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) with a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, or (iii) the Company being a "specified entity" (as defined in subsection 18.4(1) of the *Income Tax Act* (Canada)) in respect of such Recipient, and **(f)** any Taxes resulting from the assignment or transfer of the Debenture by the Holder to any person (other than the Company in accordance with the terms of this Indenture);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **"FATCA"** means Sections 1471 through 1474 of the IRC as of the date hereof (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 171(b)(1) of the IRC, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the IRC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **"Fair Market Value"** means the fair market value as determined by the Board, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Board and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **"Governmental Authority"** means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **"Holder"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **"Holder Conversion"** has the meaning ascribed to it in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **"Indebtedness"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **"Indemnified Taxes"** means Taxes other than Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **"Interest Rate"** means 2.5% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Issue Date**" means the date of this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **"IRC"** means Internal Revenue Code of 1986 of the United States of America, as amended;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **"Material Adverse Effect"** means the effect resulting from any event, change, circumstance, fact or state of being which, singly or in the aggregate with other events, changes, circumstances, facts or states of being, could reasonably be expected to have a significant and adverse effect on (w) the business, affairs, capital, liabilities (absolute, accrued, contingent or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company and its subsidiaries, as a whole, (x) the legality, validity or enforceability of this Debenture; (y) the ability of the Company to exercise its rights or perform its obligations under this Debenture; or (z) the rights or remedies of the Holder under this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **"Maturity Date"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **"Other Taxes"** means any and all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, the Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **"person"** means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **"Principal Stock Exchange"** means the CSE, and if the Common Shares are not listed on the CSE but are listed on another stock exchange or stock exchanges in Canada, references to the Principal Stock Exchange will be deemed to be references to such other stock exchange or, if more than one, to the one on which the greatest volume of Common Shares regularly trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **"Principal Sum"** has the meaning ascribed to it in Section 2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **"Tax" or "Taxes"** means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any applicable Governmental Authority, and including any interest and penalties thereon or with respect to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **"Trading Day"** means a day on which the Principal Stock Exchange is open for the transaction of business and Common Shares have traded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **"U.S. Holder"** means a Holder or a purchaser of Debentures who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the Securities Purchase Agreement, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Debentures for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **"U.S. Person"** means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) **"U.S. Securities Act"** means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **"United States"** means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **"VWAP"** means volume weighted average trading price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) this **"Debenture",** the **"Debenture", "herein", "hereby", "hereof', "hereto", "hereunder"** and similar expressions mean or refer to this convertible unsecured Debenture and any debenture, deed or instrument supplemental or ancillary thereto and any schedules hereto or thereto and not to any particular article, section, subsection, clause, subclause or other portion hereof; the **"Debentures"** means this Debenture together with all others, being part of a series of like debentures except as to principal amount thereof.

1.2 <u>**Plurals and Gender.**</u> Whenever used in this Debenture, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" (and similar phrases) shall be deemed to mean "including, without limitation".

1.3 <u>**Numbering of Articles, etc.**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, sub-clause or schedule refers to the article, section, subsection, clause, sub-clause or schedule bearing that number or letter in this Debenture.

1.4 <u>**Day not a Business Day.**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be taken on the next Business Day following the day on which such action was to be taken. If the payment of any amount is deferred for any period, then such period shall be included for purposes of the computation of any interest payable hereunder.

1.5 <u>**Computation of Time Period.**</u> Except to the extent otherwise provided herein, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding".

1.6 <u>**Currency.**</u> All references to dollars or to "$" shall be references to Canadian dollars unless otherwise specified.

1.7 <u>**Securities Purchase Agreement.**</u> The Debentures have been issued pursuant to a securities purchase agreement between the Company and the Holder dated January 8, 2025 (the **"Securities Purchase Agreement"**), and are subject in all respects to the terms of the Securities Purchase Agreement. This Debenture incorporates the terms of the Securities Purchase Agreement and in the event of a conflict between the terms of this Debenture and the terms of the Securities Purchase Agreement, the terms of the Securities Purchase Agreement will govern.

1.8 <u>**Schedules.**</u> The Schedules annexed hereto will, for all purposes, form an integral part of this Debenture.

1.9 <u>**Statutory References.**</u> Any reference to a statute shall mean the statute in force as at the date of this Debenture, together with all rules and regulations promulgated thereunder (including any **instrument of each of Canada's provincial and territorial securities regulators and** securities regulatory authorities), as the same may be amended, re-enacted, consolidated or replaced from time to time, and any successor statute thereto, unless otherwise expressly provided.

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**ARTICLE 2**<br> <u>**PROMISE TO PAY**</u>

2.1 <u>**Indebtedness.**</u> The Company, for value received, and in consideration of the premises contained herein hereby acknowledges itself indebted and promises and covenants to pay to [•], the registered holder of the Debenture (the **"Holder"):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate principal sum of $27,500,000 (the **"Principal Sum"**) on January [•], 2030 (the **"Maturity Date"**), subject to the reduction of such Principal Sum from time to time upon the exercise of the conversion rights set out in Article 4 hereof, or on such earlier date as the Principal Sum may become due in accordance with the provisions hereof, at the principal office of the Company in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) interest on any monies owing by the Company to the Holder hereunder, as specifically calculated under Section 3.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all other monies, Additional Amounts, fees, costs, expenses, liabilities or other obligations, whether before or after maturity or default, which may be owing by the Company to the Holder pursuant to this Debenture or the Securities Purchase Agreement;

(collectively, the **"Indebtedness"**).

2.2 <u>**Payment on Maturity.**</u> The Company shall pay in cash on the Maturity Date the outstanding Indebtedness owing to the Holder in full unless the Company has received from the Holder a Conversion Notice pursuant to Section 4.1 hereof. For greater certainty, the Company shall not be permitted to prepay any portion of the Principal prior to the Maturity Date other than with the prior written consent of the Holder.

2.3 <u>**Additional Amounts.**</u> Any payments made by or on behalf of the Company under or with respect to the Debenture will be made free and clear of and without withholding or deduction for or on account of any present or future Tax or other governmental charge, unless the Company or any other payor is required to withhold or deduct such Taxes by applicable law or by the interpretation or administration thereof by the relevant Governmental Authority. If the Company is required to withhold or deduct any amount for or on account of Taxes from any payment made under or with respect to the Debenture (including for greater certainty, the delivery of Common Shares or other property in connection with the exercise of a conversion right or otherwise), then, with respect to Indemnified Taxes (including Other Taxes), the Company will pay to the Holder such additional amounts (the **"Additional Amounts"**) as may be necessary so that the net amount received (including Additional Amounts) by the Holder after such withholding or deduction (including any withholding or deduction required to be made in respect of any Additional Amounts) will not be less than the amount the Holder would have received (including for greater certainty, the full amount of any Common Shares or other property to which the Holder is entitled under the Debenture in connection with the exercise of a conversion right, payment on Maturity or otherwise) if such Indemnified Taxes (including Other Taxes) had not been withheld or deducted. The Company will make all withholdings or deductions required by applicable law and will remit the full amount withheld or deducted to the relevant Governmental Authority as and when required by applicable law and as soon as practicable thereafter will deliver to the Holder the original or certified copy of a receipt issued by such Governmental Authority evidencing such payment or other evidence of such payment reasonably satisfactory to the Holder. The Company shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. To the extent that withholdings or deductions apply to any payment to be made to the Holder, if the Holder is entitled to an exemption from or reduction in the rate of any withholding Tax with respect to any payments hereunder, the Holder shall deliver to the Company, at the time or times reasonably requested by the Company and at the time or times prescribed by applicable law, such properly completed and executed documentation reasonably requested by the Company or prescribed by applicable law as will permit such payments to be made without withholding (including FATCA withholding, if applicable) or at a reduced rate of withholding. In addition, the Holder, if requested by the Company, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company as will enable the Company to determine whether or not such Holder is subject to withholding, backup withholding or information reporting requirements, provided that no Holder shall be required to deliver any documentation pursuant to this Section 2.3 that such Holder is not legally able to deliver. Notwithstanding anything herein to the contrary, this Section 2.3 and the obligations thereunder will survive the repayment of this Debenture and the termination of this Debenture.

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2.4 <u>**Ownership Cap.**</u> Notwithstanding anything to the contrary contained herein, the Company shall not issue any Common Shares to the Holder, and any such issuance shall be null and void ab initio, to the extent that immediately prior to or following such issuance, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids,* in excess of 9.98% (as adjusted from time to time in accordance with the last sentence of this Section 2.4, the **"Ownership Cap"**) of the Common Shares that would be issued and outstanding following such conversion. For purposes of calculating beneficial ownership for determining whether the Ownership Cap is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon conversion of this Debenture with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) conversion of the remaining, unconverted Debenture held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 2.4, beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of this Debenture, in determining the number of outstanding Common Shares, the Holder of this Debenture may rely on the number of outstanding Common Shares as reflected in (1) the Company's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the **"Reported Outstanding Share Number**"). For any reason at any time, upon the written or oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Company the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting a Conversion Notice for the relevant Debentures. If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 2.4, to exceed the Ownership Cap, the Holder must notify the Company of a reduced number of Debenture Shares to be purchased pursuant to such Conversion Notice (the number of shares by which such purchase is reduced, the **"Reduction Shares"**) and (ii) as soon as reasonably practicable, the Company shall return to the Holder any Conversion Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Ownership Cap to any other percentage not in excess of 19.98% specified in such notice; provided that any increase in the Ownership Cap will not be effective until the 61st day after such notice is delivered to the Company and shall not negatively affect any partial conversion effected prior to such change.

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2.5 <u>**Non-Transferable.**</u> Subject to compliance with applicable law, including securities law, this Debenture may be assigned or transferred by the Holder provided that, notwithstanding Section 2.3, the Company shall not be liable for any additional costs that may be associated or incurred in connection with the assignment or transfer to any person (other than the Company in accordance with the terms of this Debenture) including without limitation, any withholding Taxes, without any prior consent from the Company, provided the Holder shall provide such information regarding the transaction and the transferee as the Company may reasonably request.

2.6 <u>**Voluntary Redemption.**</u> Subject to compliance with applicable law, including securities law, all, but not less than all, of the Debenture may be redeemed at the option of the Company, at any time and from time to time after the third anniversary of the Issue Date upon not less than 30 days prior written notice to the Holder at a redemption price equal to 112% of the principal amount of the Debenture to be redeemed, plus all accrued and unpaid interest thereon up to and including the date of redemption, all of which shall be payable in cash.

**ARTICLE 3** <br><u>**INTEREST**</u>

3.1 <u>**Calculation of Interest.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Principal Sum shall, subject to Section 3.1(b), bear interest both before and after maturity, default and judgment, from and including the Issue Date to the date of repayment in full, or conversion, at the Interest Rate per annum (based on a year of 360 days composed of twelve 30-day months), payable in cash or at the election of the Company (but subject to the Ownership Cap), in freely tradeable Common Shares at six month intervals. For greater certainty, interest payments (the **"Interest Payments"**) will be due and payable on January [•] and July [•] of each year and on the Maturity Date (each, an **"Interest Payment Date"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 3.1(a), the Principal Sum outstanding will bear interest from and after the occurrence of an Event of Default which is continuing at the Default Rate. For so long as an Event of Default has occurred and is continuing, such interest shall be calculated and be payable in cash semi-annually in arrears on each Interest Payment Date, with interest on overdue interest at the same rate, and compounded semi-annually until paid; provided, however, any accrued and unpaid interest in respect of the period prior to the Event of Default shall remain calculated at the interest rate specified under Section 3.1(a) but, after the Event of Default, the interest on such overdue interest shall be calculated at the Default Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of the *Interest Act* (Canada), whenever any interest or fee under this Debenture is calculated using a rate based on a number of days less than a full year, such rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (i) the applicable rate, (ii) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (iii) divided by the number of days based on which such rate is calculated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) When interest is payable in Common Shares, the number of Common Shares to be issued shall be determined by the quotient obtained by dividing *(x)* by *(y),* where *(x)* is equal to the interest accrued on the Debenture from the Issue Date or the most recent Interest Payment Date, as applicable, to the applicable Interest Payment Date and *(y)* is equal to the Current Market Price, calculated up to the Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As promptly as possible after the Interest Payment Date, if interest has been paid by Common Shares, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified by the Holder for that number of Common Shares deliverable pursuant to the payment of interest on the applicable Interest Payment Date. Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share payable on any Interest Payment Date. Any fractions will be rounded down to the nearest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the payment of interest pursuant to this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such payments, if applicable.

**ARTICLE 4**<br> <u>**CONVERSION OF DEBENTURE**</u>

4.1 <u>**Conversion.**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the Ownership Cap, the Holder may, at its election, upon surrender (either in person, by mail (postage prepaid) or other means of delivery) of this Debenture along with a completed notice of conversion in the form attached hereto as Schedule "A" (the **"Conversion Notice"**) at the principal office of the Company in Toronto, Ontario at any time and from time to time following the Issue Date and prior to the close of business on the Maturity Date, convert all or portions of the outstanding Principal Sum from time to time (the **"Conversion Date"**) at the Conversion Price (**"Holder Conversion"**), in increments of $1,000.00, unless there is less than $1,000.00 of the Principal Sum then outstanding (in which case the balance of the outstanding Principal Sum shall be convertible). The delivery of the Conversion Notice duly executed by the Holder and the surrender of this Debenture shall be deemed to constitute a valid and enforceable contract between the Holder and the Company whereby (i) the Holder subscribes for the number of Common Shares which the Holder shall be entitled to receive upon such Holder Conversion, (ii) the Holder releases the Company from all liability thereon or from all liability with respect to the portion of the Principal Sum converted, as the case may be, and (iii) the Company agrees that the surrender of this Debenture for Holder Conversion constitutes full payment of the subscription price for the Common Shares issuable on such Holder Conversion. **To effect conversions hereunder, the Holder shall be required to physically surrender the Debenture to the Company.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As promptly as possible after receipt of the Conversion Notice and this Debenture, but subject to Section 4.5 hereof, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified in the Conversion Notice for that number of Common Shares deliverable upon the Holder Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The number of Conversion Shares issuable upon any conversion shall be determined by the quotient obtained by dividing *(x)* by (y) where *(x)* is equal to the aggregate amount of the outstanding Principal Sum to be converted as of the Conversion Date and (y) is the Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon completion of the Holder Conversion, the rights of the Holder to receive, in respect of the amount hereof so converted, the portion of the Principal Sum so converted shall cease and the Holder or the other person or persons in whose name or names any Common Shares shall be issuable upon such Holder Conversion shall be deemed to have become on the Conversion Date the holder or holders of record of such Common Shares represented thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that only a portion of the Principal Sum is subject to Holder Conversion, the Holder will be entitled to receive a replacement Debenture representing the Principal Sum not subject to Holder Conversion on the same terms and provisions contained herein.

4.2 <u>**Adjustment of Conversion Price.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and whenever the Company shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Conversion Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 4.2(a) or Section 4.2(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of any merger, amalgamation, arrangement or other form of business combination of the Company with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Article 4 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Article 4 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the conversion of any Debenture. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If and whenever the Company shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Company of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder converts any Debenture, in whole or in part); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 4.2(a) or Section 4.2(b) (any such events being herein called a **"Special Distribution"**), the Conversion Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) less than the Conversion Price applicable as of such record date, then the Conversion Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Conversion Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if the record date had not been fixed or the Conversion Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Company fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Conversion Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if such record date had not been fixed.

4.3 <u>**Conversion Rights Adjustment Rules.**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 4.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Company, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 4.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 4.2 results in a decrease of the Conversion Price taking effect immediately after the record date for a specific event, if any portion of this Debenture is converted after that record date and prior to completion of the event, the Company may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Conversion Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Conversion Price on the exercise date adjusted for completion of that event. The Company shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Company after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 4.2, which in the opinion of the Board, acting reasonably, would materially affect the conversion rights of the Holder, the Conversion Price shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Company in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Company affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 4.2 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 4.2 or this Section 4.3, no adjustment shall be made which would result in any increase in the Conversion Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Conversion Price will be made in respect of any event described in Section 4.2 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had converted the entire Principal Sum of this Debenture immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Conversion Price will be made pursuant to Section 4.2 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Debenture or Convertible Securities existing as of the issue date of this Debenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Company outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Conversion Price or the number of Common Shares issuable upon the conversion of this Debenture, such disputes shall be conclusively determined by the auditors of the Company or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 4.2 hereof and shall be binding upon the Company and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of this Debenture hereunder require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Company shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Conversion Price will be required by reason of the setting of such record date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Article 4 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by this Article 4, whether in its capacity as a shareholder (if applicable), as a Holder of this Debenture or otherwise.

4.4 <u>**No Fractional Common Shares.**</u> Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share upon the conversion of this Debenture. Any fractions will be rounded down to the nearest whole number.

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4.5 <u>**Certificate as to Adjustment.**</u> The Company shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Conversion Price as provided in Section 4.3, deliver a certificate of the Company to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

4.6 <u>**Notice of Certain Matter.**</u> The Company shall give notice to the Holder, in the manner provided in Article 12, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 4.3 that may give rise to an adjustment in the Conversion Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

4.7 <u>**Reservation of Common Shares.**</u> The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the conversion of this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such conversions.

4.8 <u>**Replacement of Debenture.**</u> If this Debenture becomes mutilated or lost, stolen or destroyed, the Company shall issue to the Holder a new Debenture upon surrender and cancellation of the mutilated Debenture, or, in the case of a lost, stolen or destroyed Debenture, upon the Holder furnishing to the Company such evidence of such loss, theft or destruction as will be satisfactory to the Company, acting reasonably, together with an indemnity in an amount and form satisfactory to the Company, acting reasonably. The Holder shall pay all reasonable out-of-pocket expenses incidental to the issuance of any such replacement Debenture.

**ARTICLE 5**

<u>**COVENANTS OF THE COMPANY**</u>

5.1 <u>**Payment Obligations.**</u> The Company shall duly and punctually pay all Indebtedness to the Holder promptly when owed by it hereunder.

5.2 <u>**Performance of Covenants.**</u> The Company shall promptly perform and satisfy all covenants and obligations to be performed by it under this Debenture at the times and places and in the manner provided for herein.

5.3 <u>**Maintain Corporate Existence.**</u> The Company shall maintain its corporate existence, and preserve its rights, powers, licenses and privileges which are necessary or material to the conduct of its business.

5.4 <u>**Maintain Books and Records.**</u> The Company shall keep accurate records and books of account in which complete entries will be made reflecting all financial transactions and prepare its financial statements in accordance with generally accepted accounting principles.

5.5 <u>**Payment of Taxes.**</u> The Company shall pay and discharge promptly all Taxes assessed or imposed upon it, its subsidiaries or their respective property as and when the same become due and payable, save and except where it contests in good faith the validity thereof by proper legal proceedings, and the Company shall file when due all Tax returns required to be filed by the Company and its subsidiaries.

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5.6 <u>**No Change to Constating Documents.**</u> The Company shall not amend its constating documents in any manner that would be prejudicial to the Holder.

5.7 <u>**Conduct of Business.**</u> The Company shall conduct its business in such a manner so as to: (i) comply in all material respects with all applicable law, (ii) so as to observe and perform in all respects all its obligations under leases, licences and agreements, and (iii) so as to preserve and protect its property and assets and the earnings, income and profits therefrom, except, in each case, where failure to do so would not reasonably be expected to have a Material Adverse Effect. The Corporation shall obtain and maintain, all licenses, permits, government approvals, franchises, authorizations and other rights necessary for the operation of its business except where failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.8 <u>**Notice of Event of Default.**</u> The Company shall promptly, and in any event within five (5) Business Days after a responsible officer of the Company becoming aware, give notice to the Holder of the existence of any Event of Default.

5.9 <u>**Share Capital.**</u> The Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cause the Common Shares issuable in connection with any Holder Conversion or Interest Payment to be duly issued and delivered in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ensure that all Common Shares which shall be issued in connection with any Holder Conversion be issued as fully paid and non-assessable.

5.10 <u>**Regulatory Approvals.**</u> The Company shall use commercially reasonable efforts to forthwith obtain such regulatory approvals as may be necessary for the Common Shares issued in connection with any Holder Conversion and any Interest Payment to be approved for listing on the CSE.

5.11 <u>**Exchange Listing.**</u> The Company shall use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE during the term of this Debenture.

5.12 <u>**Financial Reporting.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall furnish the Holder with the following documents, statements and reports (by email in pdf format):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u> <u>Quarterly Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the first three fiscal quarters of each fiscal year of the Company, the unaudited balance sheet of the Company as of the close of such fiscal quarter and unaudited statements of income and expense and changes in financial position from the beginning of the then-current fiscal year to the close of such fiscal quarter, prepared in accordance with IFRS (subject to normal year-end audit adjustments) (including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> <u>Annual Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the fiscal year of the Company, financial statements of the Company consisting of a balance sheet as of the end of such fiscal year and a statement of income and expense and changes in financial position for such fiscal year (including any footnotes thereto), prepared in accordance with IFRS (and including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company and certified by such independent chartered professional accountants of recognized international standing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Delivery.</u> All reports and financial information required to be delivered under clauses (i) and (ii) shall be deemed to be delivered if the Company files or furnishes such report or information in accordance with Canadian securities laws with SEDAR+.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> <u>Compliance Certificate.</u> All financial information delivered (or deemed delivered) under clauses (i) and (ii) shall be accompanied by a certificate of a senior officer of the Company certifying that no default or Event of Default has occurred and is continuing as of the date of such delivery or deemed delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> <u>Other Information.</u> The Holder from time to time may request any other reasonable information concerning the Company (or any Subsidiary of the Company), with such information to be provided as promptly as reasonably possible.

5.13 <u>**Use of Proceeds.**</u> The funds advanced under this Debenture shall be used by the Company for general working capital purposes.

5.14 <u>**Reporting Issuer.**</u> The Company shall use its commercially reasonable efforts to maintain its status as a "reporting issuer" in each applicable jurisdiction and the Company shall comply with all applicable securities legislation, provided that the covenant to remain a "reporting issuer" shall not apply to any merger, amalgamation, arrangement, take-over bid, going private transaction or other similar transaction involving the purchase or sale of all of the outstanding Common Shares.

5.15 <u>**Corporate Existence.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall not take part in any consolidation, plan of arrangement, amalgamation, merger, winding-up, dissolution, capital or corporate reorganization or similar proceeding or arrangement, unless: (i) the corporation formed by or surviving any such proceeding or arrangement is a corporation incorporated under the original jurisdiction of formation or the laws of Canada or any province thereof (such corporation being herein referred to as the **"Successor Entity"**); (ii) the Successor Entity is of comparable or better creditworthiness relative to the Company; (iii) the Successor Entity expressly assumes all the credit obligations as stated in this section pursuant to an instrument in form and substance satisfactory to the Holder, acting reasonably; (iv) no default or Event of Default is then existing or would result from the consummation of such proceeding or arrangement; (v) the provisions of Article 4, as applicable, have been complied with; and (vi) the Successor Entity delivers to the Holder an officer's certificate, in form and substance reasonably satisfactory to the Holder, acting reasonably, with respect to the instrument delivered pursuant to clause (iii) above.

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**ARTICLE 6** <br><u>**DEFAULT**</u>

6.1 <u>**Acceleration of Maturity on Default.**</u> Upon the happening of any one or more of the following events (herein referred to as **"Events of Default"**) namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Company does not pay when due the Indebtedness or other amount payable by it under this Debenture at the place and in the currency in which such amount is expressed to be payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company fails to issue the Common Shares in respect of any duly completed Holder Conversion, if such failure continues for a period of ten (10) Business Days from the Conversion Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Company fails to observe or defaults under any covenant or agreement of the Company set out in this Debenture or the Securities Purchase Agreement or any representation or warranty made by the Company in the Securities Purchase Agreement proves to be untrue in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if all or substantially all of the assets of the Company used to carry on its business are lost or destroyed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any event occurs or series of events occur which individually or together has a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the Company makes a general assignment for the benefit of creditors; or any proceeding is instituted by it seeking relief as debtor, or to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or for an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver or trustee, or other similar official for it or for any substantial part of its properties or assets; or any corporate or partnership action is taken to authorize any of the actions referred to in this Subsection 6.1(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if any proceedings are instituted against the Company seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver, trustee or other similar official for it or for any substantial part of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any proceedings with respect to the Company are commenced under the *Companies' Creditors Arrangement Act* (Canada); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company takes any corporate proceedings for its dissolution, liquidation or if the corporate existence of the Company shall be terminated by expiration, forfeiture or otherwise, or if the Company ceases or threatens to cease, to carry on all or a substantial part of its business;

then in each and every such event, the amount of the Indebtedness shall forthwith become immediately due and payable to the Holder, anything herein contained to the contrary notwithstanding, and the Company shall forthwith pay to the Holder the amount of the Indebtedness and all other monies payable under the provisions hereof from the date of the said Event of Default until payment is received by the Holder, and any monies so received by the Holder shall be applied first to amounts other than interest and the Principal Sum, second to interest, and third to the Principal Sum.

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6.2 <u>**Waiver of Company's Rights.**</u> To the full extent that it may lawfully do so, the Company for itself and its successors and assigns hereby waives and disclaims any benefit of, and shall not have or assert any right under, any statute or rule of law pertaining to the marshalling of assets, discussion, division or other matter whatever, to defeat, reduce or affect the rights of the Holder under the terms of this Debenture. Without limiting the generality of the foregoing, the Company waives every defence based upon any or all indulgences that may be granted by the Holder. Presentment, notice of dishonour, protest and notice of protest hereof are hereby waived.

**ARTICLE 7**

<u>**U.S. RESTRICTIONS**</u>

7.1 <u>**U.S. Registration.**</u> This Debenture and the Common Shares issuable upon conversion hereof have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States. This Debenture and the underlying Common Shares may only be offered and sold to a U.S. Person or a person in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

7.2 <u>**U.S. Restrictions on Transfer.**</u> This Debenture and the Common Shares issuable upon conversion hereof may only be transferred by the U.S. Holder pursuant to the restrictions on transfer described in Exhibit "A" to the Securities Purchase Agreement, as applicable to the U.S. Holder.

**ARTICLE 8** <br><u>**WAIVER**</u>

8.1 <u>**Waiver.**</u> The Holder may waive any breach of any of the provisions contained in this Debenture or any default by the Company in the observance or performance of any covenant, condition or obligation required to be observed or performed by it under the terms of this Debenture. No waiver, consent, act or omission by the Holder shall extend to or be taken in any manner whatsoever to affect any other or subsequent breach or default or the rights resulting therefrom and no waiver or consent by the Holder shall bind the Holder unless it is in writing. The inspection or approval by the Holder of any document or matter or thing done by the Company shall not be deemed to be a warranty or holding out of the adequacy, effectiveness, validity or binding effect of such document, matter or thing or a waiver of the Company's obligations.

**ARTICLE 9**

<u>**OTHER RIGHTS OF THE HOLDER**</u>

9.1 <u>**Rights of Set-Off.**</u> The Company acknowledges and agrees that the Indebtedness and the other obligations hereunder shall be paid, satisfied and discharged to the Holder without regard to such dealings as may from time to time occur as between any one or more of the Holder, the Company and any other person and without regard to such equities or rights of set-off or counterclaim which may from time to time exist between any one or more of the Holder, the Company or any other person, and that the Indebtedness and other obligations hereof shall be paid without regard to any equities between the Company and the Holder hereof or any set-off or cross-claims and the receipt of the Holder for the payment of the Indebtedness will be a good discharge to the Company in respect thereof.

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9.2 **<u>No Merger.</u>** Neither the taking of any judgement nor the exercise of any rights hereunder shall operate to extinguish the obligation of the Company to pay the monies owing under this Debenture and shall not operate as a merger of any covenant in this Debenture, and the acceptance of any payment shall not constitute or create a novation, and the taking of a judgement or judgements under a covenant herein contained shall not operate as a merger of those covenants and affect the Holder's right to interest under this Debenture.

**ARTICLE 10**

<u>**ADMINISTRATIVE PROVISIONS**</u>

10.1 <u>**Registered Holders.**</u> The person in whose name this Debenture shall be registered shall be deemed and regarded as the owner and holder hereof for all purposes, and the payment to and/or receipt of any Holder for any Indebtedness shall be a good discharge of the Company for the same, and the Company shall not be bound to enter in the register notice of any trust or to enquire into the title of any Holder or to recognize any trust or equity affecting the title hereof save as ordered by some court of competent jurisdiction or as required by statute.

**ARTICLE 11**

<u>**MISCELLANEOUS**</u>

11.1**Consent.** Where a provision of this Debenture requires an approval or consent by a party to this Debenture and written notification of such approval or consent is not delivered within the applicable time in accordance with this Debenture, then the party whose consent or approval is required shall be conclusively deemed to have withheld its approval or consent.

11.2 <u>**Holder May Remedy Default.**</u> If the Company fails to do anything hereby required to be done by it, the Holder may, but will not be obliged to, do such thing and all reasonable sums thereby expended by the Holder shall be payable forthwith by the Company, but no such performance by the Holder shall be deemed to relieve the Company from any default hereunder.

11.3 <u>**Adjustment of Interest.**</u> Notwithstanding any provision to the contrary contained in this Debenture, in no event will the aggregate "interest" (as defined in Section 347 of the *Criminal Code* (Canada)) payable under this Debenture exceed the effective annual rate of interest on the "credit advanced" (as defined in that Section) under this Debenture lawfully permitted under that Section and, if any payment, collection or demand pursuant to this Debenture in respect of "interest" (as defined in that Section) is determined **to be** contrary to the provision of that Section, such payment, collection or demand will be deemed to have been made by mutual mistake of the Company and the Holder and the amount of such payment or collection will be refunded to the Company; for purposes of this Debenture the effective annual rate of interest will be determined in accordance with generally accepted actuarial practices and principles over the term of this Debenture on the basis of annual compounding of the lawfully permitted rate of interest and, in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Holder shall be conclusive for the purposes of such determination, in the absence of evidence to the contrary.

11.4 <u>**Indemnification.**</u> The Company agrees to indemnify the Holder from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits and reasonable costs, expenses or disbursements (except by reason of the fraud, wilful misconduct or gross negligence of the Holder or any of its employees or a material breach by the Holder of any of its covenants contained herein) which may be imposed on, incurred by, or asserted against the Holder in connection with this Debenture and arising by reason of a breach of any representation and warranty of the Company contained in this Debenture, any action (including any action referred to herein) or inaction or omission to do any act legally required of the Company under this Debenture. In addition to the foregoing, the Company agrees to reimburse the Holder for all reasonable and documented legal or other expense incurred in connection with investigating, defending or participating in any action or other proceeding relating to any such losses or liabilities. Notwithstanding anything to the contrary contained herein, nothing in this provision shall be construed to limit or reduce the Company's obligations under Section 6.1.

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11.5 <u>**Remedies**.</u> The parties acknowledge and agree that an award of money damages may be inadequate for any breach of this Debenture and any such breach could cause the non- breaching party irreparable harm. Accordingly, the parties agree that, in the event of any breach or threatened breach of this Debenture by one of the parties, the non-breaching party will also be entitled, without the requirement of posting a bond or other security, to seek equitable relief, including injunctive relief and specific performance. Such remedies will not be the exclusive remedies for any breach of this Debenture but will be in addition to all other remedies available at law or equity to each of the parties.

11.6 <u>**Expenses.**</u> Except as otherwise expressly provided herein or in the Securities Purchase Agreement, each party to this Debenture shall pay its respective legal, accounting and other professional advisory fees, costs and expenses incurred in connection with the negotiation, preparation or execution of this Debenture and all documents and instruments executed or delivered pursuant to this Debenture.

11.7 <u>**Public Notice.**</u> All public notices to third parties and all other publicity concerning the matters contemplated by this Debenture shall be jointly planned and coordinated by the Company and the Holder, each acting reasonably, and neither the Company nor the Holder shall act unilaterally in this regard without the prior written approval of the other party, except to the extent that the party making such notice is required to do so by applicable laws in circumstances where prior consultation with the other party is not practicable, provided concurrent notice to the other party is provided. Notwithstanding the foregoing, the Company may comply with its obligations under applicable securities laws without such consultation or approval where required.

11.8 <u>**Amendment.**</u> This Debenture may not be amended other than as agreed upon in writing between the Company and the Holder.

11.9 <u>**Assignment.**</u> Except in compliance with Section 5.15, the Company may not assign any rights and benefits or obligations under this Debenture without the prior written consent of the Holder.

11.10 <u>**Governing Law.**</u> This Debenture shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario. The Company hereby irrevocably attorns to the jurisdiction of the Courts of the Province of Ontario.

11.11 <u>**Severability.**</u> If any provision in this Debenture is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Debenture shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Debenture so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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11.12 <u>**Headings.**</u> The headings of the articles, sections, subsections and clauses of this Debenture have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Debenture.

11.13 <u>**Binding Effect.**</u> This Debenture and all of its provisions shall enure to the benefit of the Holder, its successors and assigns, and shall be binding upon the Company and its successors and permitted assigns. The expression the "Holder" as used herein shall include the Holder's assigns whether immediate or derivative.

11.14 <u>**Confidentiality.**</u> The Company shall not, and shall use its reasonable best efforts to ensure that its representatives will not, disclose the identity of the Holder to any third party, or otherwise identify the Holder as an investor in the Company, including in any public disclosure documents, regulatory filings, public statements, press releases and investor presentations, except (i) with the consent of the Holder, (ii) to the extent required to ensure compliance with applicable laws, including the filing of a Form 45-106F1 in connection with the issuance of the Debenture to the Holder, or (iii) to the Company's representatives on an as-needed basis; provided that such representatives are subject to confidentiality obligations at least as stringent as those applicable to the Company herein. The Company agrees to advise each of its representatives as to the confidential nature of the investment by the Holder and the holding by the Holder of securities of the Company. This covenant shall survive until the Holder no longer, directly or indirectly, owns the Debenture and/or the Common Shares.

**ARTICLE 12** <br><u>**NOTICE**</u> 

12.1 <u>**Notices.**</u> Any notice required or permitted to be given under any of this Debenture or any tender or delivery of documents may be given by personal delivery or by facsimile or electronic transmission to the parties at the following addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Holder at:<br>Address: _______________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: <br>Email: _______________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Company at:

Sol Strategies Inc.

217 Queen Street West, Suite 401

Toronto, ON M5V 0R2

Attention: Leah Wald

Email: ***[Redacted - Contact Information]***

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Any notice or delivery shall be given as herein provided or to such other addresses or email or telecopier number or in care of such other person as a party may from time to time advise by notice in writing as aforesaid. The date of receipt of such notice or delivery shall be the date of actual delivery to the address specified if delivered or the date of actual transmission to the email or telecopier number if emailed or telecopied, unless such date is not a Business Day, in which event the date of receipt shall be the next Business Day immediately following the date of such delivery or transmission.

*[Remainder of page intentionally left blank]*

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**IN WITNESS WHEREOF** the Company has duly executed this Debenture as of the date first above by its duly authorized officer.

Per: _____________________________________________<br> Name: Leah Wald<br> Title: Chief Executive Officer

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**SCHEDULE "A"**

**CONVERSION NOTICE**

**TO: Sol Strategies Inc. (the "Company")**

The undersigned registered holder of the convertible debenture dated January [•], 2025 (the **"Debenture"),** given by the Company, hereby subscribes for Common Shares, on the terms specified in the Debenture, to the extent of $____________ of Principal Sum. The Debenture is hereby tendered to the Company and will, upon due issuance of the Common Shares aforesaid and, if required, any replacement Debenture for any portion of the Debenture not converted, be null and void.

The Common Shares subscribed for will be issued as set forth below and will be mailed or delivered to the address set forth below.

If the Debentures are being converted by, or for the account or benefit of a U.S. Person or a person in the United States, the undersigned represents, warrants and certifies as follows (one only) of the following must be checked):

❏ A. The undersigned has not been solicited to convert the Debentures by any person, or if the undersigned has been solicited to convert the Debentures, the undersigned has confirmed that no commission or remuneration has been or will be paid or given, directly or indirectly, for soliciting such conversion, and the undersigned acknowledges that the Company is relying on the registration exemption provided by section 3(a)(9) of the United States Securities Act of 1933, as amended (the **"U.S. Securities Act"),** to issue the Common Shares; OR

❏ B. The undersigned has delivered to the Company and the Company an opinion of counsel reasonably satisfactory to the Company to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available. (Note: If this box is to be checked, holders are encouraged to consult with the Company in advance to determine that the legal opinion tendered in connection with conversion will be satisfactory in form and substance to the Company.)

**❏ If the undersigned has checked Box A or B, and the undersigned has determined with the benefit of legal advice that the restrictions on transfer contained in the Debenture and the U.S. Legend are not required to be imposed on the beneficial interest of the undersigned in order to maintain compliance with the U.S. Securities Act, the undersigned has caused to be delivered to the Company, at the request of the Company, an opinion of counsel of recognised standing, in form and substance reasonably satisfactory to the Company, to the foregoing effect.**

Capitalized terms not defined in this Conversion Notice have the meanings ascribed to them in the Debenture.

*[Remainder of this page intentionally left blank]*

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DATED this________day of_____________, 20_.

**If subscriber is an individual:**

    <br> Witness Signature of Subscriber

Print below the name and address in full of the person in whose name the Common Shares subscribed for are to be issued. If the Common Shares subscribed for are to be issued to more than one person, similar information must be provided for each person, as well as the number of Common Shares to be issued to each. (If any of the Common Shares are to be issued to a person or persons other than the Holder of the Debenture, the Holder must pay to the Company all requisite taxes.)

Name   <br> Address   <br>  

Social Insurance Number   Postal Code  

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**EXHIBIT "C" <br>(see attached)**

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON WITHIN THE UNITED STATES UNLESS THE WARRANTS AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. AS USED HEREIN, THE TERMS 'UNITED STATES' AND 'U.S. PERSON' HAVE THE MEANINGS ASSIGNED TO THEM IN REGULATIONS UNDER THE U.S. SECURITIES ACT.**

**THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE ON OR BEFORE 5:00 P.M. (TORONTO TIME) ON JANUARY** **[•],** **2030, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.**

**WARRANTS TO PURCHASE COMMON SHARES OF**

**SOL STRATEGIES INC.**

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| | |
|:---|:---|
| **Number - W2025-001** | **Number of warrants represented by this** |
|  | **certificate: 11,000,000** |

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**THIS CERTIFIES THAT,** for value received, [•] (the **"Holder"**), being the registered holder of such number of common share purchase warrants (collectively, the **"Warrants"**) as set out above, is entitled, at any time prior to the Expiry Time (as defined below) to subscribe for and purchase, in respect of each Warrant held, one fully-paid and non-assessable common share (**"Common Share"**) of Sol Strategies Inc. (the **"Corporation"**) at a price of $2.50 (such amount hereinafter, the **"Exercise Price"**), subject to adjustment as set out herein, by surrendering to the Corporation at its principal office, 217 Queen St W #401, Toronto, ON M5V 0R2, this Warrant certificate (the **"Warrant Certificate"**), with a completed and executed subscription form in the form attached hereto, and payment in full for the Common Shares being purchased, which payment shall be made by certified cheque or such other means acceptable to the Corporation in same day freely transferable funds at par in Toronto.

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The Corporation shall treat the Holder as the absolute owner of these Warrants for all purposes and the Corporation shall not be affected by any notice or knowledge to the contrary. The Holder shall be entitled to the rights evidenced by this Warrant Certificate free from all equities and rights of set-off or counterclaim between the Corporation and the original or any intermediate holder and all persons may act accordingly and the receipt by the Holder of the Common Shares issuable upon exercise hereof shall be a good discharge to the Corporation and the Corporation shall not be bound to inquire into the title of any such Holder.

**1.** <u>**Definitions:**</u> In this Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Attribution Parties**" means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - *Take Over Bids and Issuer Bids;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Common Shares**" means the common shares in the capital of the Corporation as such shares are constituted on the date hereof, as the same may be reorganized, reclassified or otherwise changed pursuant to any of the events set out in Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Convertible Securities**" means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Corporation or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Corporation**" means Sol Strategies Inc., a company incorporated under the laws of the Province of Ontario and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Current Market Price**" at any date, means the volume weighted average trading price per Common Share at which the Common Shares have traded on the Canadian Securities Exchange, or, if the Common Shares in respect of which a determination of current market price is being made are not listed thereon, on such stock exchange or market on which such shares are listed as may be selected for such purposes by the Directors, or, if the Common Shares are not listed on any stock exchange or market, then on the over-the-counter market, for any 20 consecutive Trading Days selected by the Corporation on the Trading Day before such date, or if such Common Shares are not listed on any exchange or market or quoted on any over-the-counter market, the current market price shall be as determined by such firm of independent chartered accountants as may be selected by the Directors; and the weighted average price per share shall be determined by dividing the aggregate sale price of all Common Shares traded on such stock exchange or market, as the case may be, during such 20 consecutive Trading Days by the total number of Common Shares so traded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Directors**" means the members of the board of directors of the Corporation at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Exercise Price**" means $2.50 per Common Share, subject to adjustment in accordance with Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Expiry Day**" means January [•], 2030;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Expiry Time**" means 5:00 p.m., Toronto time, on the Expiry Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "**Fair Market Value**" means the fair market value as determined by the Directors, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Directors and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Holder**" means the holder set forth on the first page hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**person**" means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof or any other entity whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" with respect to a stock exchange, market or over-the-counter market means a day on which such stock exchange or over-the-counter market is open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**U.S. Holder**" means a Holder who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the agreement to purchase the Warrants, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Warrants for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**U.S. Person**" means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**United States**" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Warrants**" shall have the meaning set forth on the face page hereof.

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<u>2.</u> <u>**Expiry Time:**</u> At the Expiry Time, all rights under the Warrants evidenced hereby, in respect of which the right of subscription and purchase herein provided for shall not theretofore have been exercised, shall expire and be of no further force and effect.

<u>3.</u> <u>**Exercise Procedure:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Holder may exercise the right to subscribe for and purchase the number of Common Shares herein provided for by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate, with the subscription form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation, together with a certified cheque (or such other method of payment acceptable to the Corporation) payable to or to the order of the Corporation in an amount equal to the aggregate Exercise Price in respect of the Warrants so exercised. Any Warrant Certificate so surrendered shall be deemed to be surrendered only upon delivery thereof to the Corporation at its principal office set forth herein (or to such other address as the Corporation may notify the Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon such delivery as aforesaid, the Corporation shall cause to be issued to the Holder hereof the Common Shares subscribed for not exceeding those which such Holder is entitled to purchase pursuant to this Warrant Certificate and the Holder hereof shall become a shareholder of the Corporation in respect of the Common Shares subscribed for with effect from the date of such delivery and shall be entitled to delivery of a certificate evidencing the Common Shares and the Corporation shall cause such certificate or certificates to be mailed to the Holder hereof at the address or addresses specified in such subscription as soon as practicable, and in any event within five Business Days of such delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Warrant and the Common Shares to be issued upon its exercise have not been registered under the U.S. Securities Act or the securities laws of any state of the United States. This Warrant may not be exercised in the United States or by or on behalf of any U.S. Person or person in the United States, directly or indirectly, unless (i) the common shares are registered under the U.S. Securities Act and the applicable laws of any such state, or (ii) an exemption from such registration requirements is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any Warrants are exercised before May [•], 2025, the certificate(s) representing the Common Shares issued upon such exercise shall bear the following legend:

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY [x] 2025."**

provided that, if at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary or advisable under any such securities laws, or the holder of any such legended certificate, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to the Corporation) to the effect that such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange for a certificate which does not bear such legend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Issuance and delivery of Common Shares upon exercise of this Warrant Certificate shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary contained herein, the Corporation shall not effect the exercise of any Warrants, and the Holder shall not have the right to exercise any Warrants, and any such exercise shall be null and void ab initio and treated as if the exercise had not been made, to the extent that immediately prior to or following such exercise, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 *- Take Over Bids and Issuer Bids,* in excess of 9.98% (the "**Maximum Percentage**") of the Common Shares that would be issued and outstanding following such exercise. For purposes of calculating beneficial ownership for determining whether the Maximum Percentage is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon exercise of the relevant Warrant with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) exercise of the remaining, unexercised Warrant held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 3(e), beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of these Warrants, in determining the number of outstanding Common Shares, a Holder of the Warrants may rely on the number of outstanding Common Shares as reflected in (1) the Corporation's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the Commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the "**Reported Outstanding Share Number**"). For any reason at any time, upon the written or oral request of the Holder, the Corporation shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Corporation the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting an exercise notice for the relevant Warrants. If the Corporation receives an exercise notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such exercise notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 3(e), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the "**Reduction Shares**") and (ii) as soon as reasonably practicable, the Corporation shall return to the Holder any Exercise Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including these Warrants, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Corporation, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 19.98% specified in such notice; provided that (i) any increase in the Maximum Percentage will not be effective until the 61st day after such notice is delivered to the Corporation and shall not negatively affect any partial exercise effected prior to such change.

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<u>4.</u> <u>**Partial Exercise:**</u> The Holder may subscribe for and purchase a number of Common Shares less than the number the Holder is entitled to purchase pursuant to this Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the Holder shall in addition be entitled to receive, without charge, a new Warrant Certificate in respect of the balance of the Common Shares which the Holder was entitled to subscribe for pursuant to this Warrant Certificate and which were then not purchased.

<u>5.</u> <u>**No Fractional Shares:**</u> Notwithstanding any adjustments provided for in Section 11 hereof or otherwise, the Corporation shall not be required upon the exercise of any Warrants to issue fractional Common Shares in satisfaction of its obligations hereunder and, in any such case, the number of Common Shares issuable upon the exercise of any Warrants shall be rounded down to the nearest whole number. To the extent that the Holder would be entitled to purchase a fraction of a Common Share, such right may be exercised in respect of such fraction only in combination with other rights which in the aggregate entitle the Holder to purchase a whole number of Common Shares.

<u>6.</u> <u>**Exchange of Warrant Certificates:**</u> This Warrant Certificate may be exchanged for Warrant Certificates representing in the aggregate the same number of Warrants and entitling the Holder thereof to subscribe for and purchase an equal aggregate number of Common Shares at the same Exercise Price and on the same terms as this Warrant Certificate (with or without legends as may be appropriate).

<u>7.</u> <u>**Transfer of Warrants:**</u> Subject to applicable law, the Holder may transfer the within Warrants by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate with the transfer form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation. If less than all Warrants represented by this Warrant Certificate are transferred, the Holder shall be entitled to receive a new Warrant Certificate in respect of the number of Warrants which have not been transferred. Notwithstanding the foregoing, the Corporation may refuse to permit the transfer of any Warrant if such transfer would constitute a violation of the securities laws of any jurisdiction. Subject to the foregoing, the Corporation shall issue and mail as soon as practicable, and in any event within five Business Days of such delivery, a new Warrant Certificate (with or without legends as may be appropriate) registered in the name of the transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer as directed.

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<u>8.</u> <u>**Not a Shareholder:**</u> Nothing in this Warrant Certificate or in the holding of a Warrant evidenced hereby shall be construed as conferring upon the Holder any right or interest whatsoever as a shareholder of the Corporation.

<u>9.</u> <u>**No Obligation to Purchase:**</u> Nothing herein contained or done pursuant hereto shall obligate the Holder to subscribe for or the Corporation to issue any shares except those shares in respect of which the Holder shall have exercised its right to purchase hereunder in the manner provided herein.

<u>10.</u> <u>**Covenants:**</u> 

The Corporation covenants and agrees that so long as any Warrants evidenced hereby remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall reserve and there shall remain unissued out of its authorized capital a sufficient number of Common Shares to satisfy the right of purchase herein provided for, it will cause the Common Shares subscribed for and purchased in the manner herein provided to be issued and delivered as directed and such Common Shares shall be issued as fully paid and non-assessable Common Shares and free from all taxes, liens and charges with respect to the issue thereof and the holders thereof shall not be liable to the Corporation or to its creditors in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation will at all times while any Warrants are outstanding preserve and maintain its corporate existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice, will keep or cause to be kept proper books of account in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation will at all times while any Warrants are outstanding use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE or such other recognized exchange on which the Common Shares may be listed at the time of exercise of the Warrants, subject to the exception provided in Section 13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Corporation shall use commercially reasonable efforts to maintain its status as a reporting issuer not in default in the Provinces of Canada in which it was a reporting issuer on the date of issuance of this Warrant Certificate.

<u>11.</u> <u>**Adjustments:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of the holder of the Warrants evidenced hereby, including the number of Common Shares issuable upon the exercise thereof, will be adjusted from time to time in the events and in the manner provided in, and in accordance with the provisions of, this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and whenever the Corporation shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Exercise Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 11(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of any merger, amalgamation, arrangement or other form of business combination of the Corporation with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Section 11 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Section 11 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of any Warrants. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If and whenever the Corporation shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Corporation of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder exercises any Warrants); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 11(b) or Section 11(c) (any such events being herein called a "**Special Distribution**"), the Exercise Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Corporation sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) which is less than 95% of the Current Market Price as of such record date, then the Exercise Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Exercise Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if the record date had not been fixed or the Exercise Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Corporation fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Simultaneously with any adjustment to the Exercise Price pursuant to Section 11, the number of Common Shares purchasable upon the exercise of each Warrant (at the adjusted Exercise Price) shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the applicable Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the applicable Exercise Price resulting from such adjustment.

12. <u>**Rules Regarding Calculation of Adjustment of Exercise Price:**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 11:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Corporation, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 11 results in a decrease of the Exercise Price taking effect immediately after the record date for a specific event, if any Warrants represented by this Warrant Certificate is exercised after that record date and prior to completion of the event, the Corporation may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Exercise Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Exercise Price on the exercise date adjusted for completion of that event. The Corporation shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Corporation after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 11, which in the opinion of the Directors, acting reasonably, would materially affect the conversion rights of the Holder, the Exercise Price and number of Common Shares issuable upon exercise of the Warrants shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Corporation in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the Directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Corporation affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 11 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 11 or this Section 12, no adjustment shall be made which would result in any increase in the Exercise Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Exercise Price will be made in respect of any event described in Section 11 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised all Warrants represented by this Warrant Certificate immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Exercise Price will be made pursuant to Section 11 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Warrant Certificate or Convertible Securities existing as of the issue date of this Warrant Certificate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Corporation outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of Common Shares issuable upon the exercise of the Warrants represented by this Warrant Certificate, such disputes shall be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 11 hereof and shall be binding upon the Corporation and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of the exercise of the Warrants represented by this Warrant Certificate require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Corporation shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Corporation sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price will be required by reason of the setting of such record date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Section 12 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by Section 11, whether in its capacity as a shareholder (if applicable), as a Holder or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Corporation shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Exercise Price as provided in Section 11 or 12, deliver a certificate of the Corporation to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Corporation shall give notice to the Holder, in the manner provided in Section 23, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 11 that may give rise to an adjustment in the Exercise Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

13. <u>**Consolidation and Amalgamation:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not enter into any transaction whereby all or substantially all or its undertaking, property and assets would become the property of any other corporation (herein called a "**successor corporation**") whether by way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the consummation of such transaction the Corporation and the successor corporation shall have executed such instruments and done such things as the Corporation, acting reasonably, considers necessary or advisable to establish that upon the consummation of such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the successor corporation will have assumed all the covenants and obligations of the Corporation under this Warrant Certificate, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Warrants and the terms set forth in this Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against the successor corporation, to all the rights of the Holder under this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the conditions of Section 13(a) shall have been duly observed and performed the successor corporation shall possess, and from time to time may exercise, each and every right and power of the Corporation under the Warrants in the name of the Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any Director or officer of the Corporation may be done and performed with like force and effect by the like Directors or officers of the successor corporation.

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<u>14.</u> <u>**Representation and Warranty:**</u> The Corporation hereby represents and warrants with and to the Holder that the Corporation is duly authorized and has the corporate and lawful power and authority to create and issue the Warrants and the Common Shares issuable upon the exercise hereof and perform its obligations hereunder and that this Warrant Certificate represents a valid, legal and binding obligation of the Corporation enforceable in accordance with its terms.

<u>15.</u> <u>**Lost Certificate:**</u> If the Warrant Certificate evidencing the Warrants issued hereby becomes stolen, lost, mutilated or destroyed the Corporation may, on such terms as it may in its discretion, acting reasonably, impose, issue and countersign a new Warrant Certificate of like denomination, tenor and date as the Warrant Certificate so stolen, lost mutilated or destroyed.

<u>16.</u> <u>**Governing Law:**</u> This Warrant Certificate shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws, rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario.

<u>17.</u> <u>**Severability:**</u> If any provision in this Warrant Certificate is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Warrant Certificate shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Warrant Certificate so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

<u>18.</u> <u>**Headings:**</u> The headings of the articles, sections, subsections and clauses of this Warrant Certificate have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Warrant Certificate.

<u>19.</u> <u>**Numbering of Articles, etc.:**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, subclause or schedule refers to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Warrant Certificate.

<u>20.</u> <u>**Gender:**</u> Whenever used in this Warrant Certificate, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" shall be deemed to mean "including, without limitation".

<u>21.</u> <u>**Day not a Business Day:**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be required to be taken on or before the requisite time on the next succeeding day that is a Business Day.

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<u>22.</u> <u>**Binding Effect:**</u> This Warrant Certificate and all of its provisions shall enure to the benefit of the Holder, its heirs, executors, administrators, successors, assigns and legal personal representatives and shall be binding upon the Corporation and its successors.

<u>23.</u> <u>**Notice:**</u> Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed to be validly given if the notice is sent by fax, email, prepaid same day courier or first class mail addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Holder at the latest address of the Holder as recorded on the books of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Corporation at:

Sol Strategies Inc.

217 Queen St W #401

Toronto, ON M5V 0R2

Attention: Chief Executive Officer

Email: ***[Redacted - Contact Information]***

Any notice given as aforesaid shall conclusively be deemed to have been received by the addressee, if sent by fax or email on the day of transmission or, if such day is not a Business Day, on the next Business Day, if sent by courier, on the next following Business Day and, if sent by mail, on the fifth day following the posting thereof.

***(Signature page to follow)***

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**IN WITNESS WHEREOF** the Corporation has caused this Warrant Certificate to be signed by its duly authorized officer as of this _____ day of January, 2025.

**SOL STRATEGIES INC.**

**Per: _______________________________________** <br> Authorized Signing Officer

**[Warrant Certificate]**

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**SCHEDULE "A"**

<u>**SUBSCRIPTION FORM**</u>

**TO BE COMPLETED IF WARRANTS ARE TO BE EXERCISED:**

**TO: SOL STRATEGIES INC.** <br>217 Queen St W #401 <br>Toronto, ON M5V 0R2

The undersigned holder of the within Warrant hereby irrevocably subscribes for _____________ Common Shares of Sol Strategies Inc. (the "**Corporation**") pursuant to the within Warrant and tenders herewith a certified cheque or bank draft for $_____________ ($2.50 per Common Share until January [•], 2030) in full payment therefor.

By executing this subscription form the undersigned represents and warrants that:

❏ (A) the undersigned holder (i) at the time of exercise of the Warrant is not in the United States, (ii) is not a U.S. Person and is not exercising the Warrant on behalf of a U.S. Person or person in the United States, (iii) did not execute or deliver this subscription form while in the United States (iv) delivery of the underlying common shares will not be to an address in the United States and (v) did not receive any solicitation for the exercise of this Warrant while in the United States; OR

❏ (B) the undersigned holder (i) is the original purchaser of the Warrant, (ii) is exercising the Warrant for its own account or for the account of a beneficial purchaser that was named in the securities purchase agreement pursuant to which it purchased such convertible debenture units, and (iii) is, and such beneficial purchaser, if any, is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act at the time of exercise of the Warrant, and (iv) the representations, warranties and covenants of the holder made in the original U.S. Accredited Investor Confirmation Certificate attached as **Exhibit "A" to the** securities purchase agreement **in connection with its** purchase of convertible debenture unit remain true and correct as of the date of exercise of these Warrants; OR

❏ (C) if the undersigned holder is resident in the United States or is a U.S. Person or is exercising the Warrant on behalf of a U.S. Person or person in the United States, the undersigned holder has delivered to the Corporation and the Corporation's transfer agent an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing in form and substance reasonably satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to the effect that with respect to the common shares to be delivered upon exercise of the Warrant, the issuance of such securities has been registered under the U.S. Securities Act and applicable securities laws of any state of the United States or an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States is available.

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**Note: Certificates or statements representing common shares will not be registered or delivered to an address in the United States unless box (B) or (C) immediately above is checked. Unless box (A) is checked the common shares delivered will be "restricted securities" under the U.S. Securities Act, will be subject to transfer restrictions under the U.S. Securities Act and any applicable securities laws of any state of the United States and will bear a legend to such effect. As used herein "United States" and "U.S. Person" have the meaning given such terms in Regulation S under the U.S. Securities Act. Holdings checking box (C) above are encouraged to provide a draft of the legal opinion to the Corporation.**

**DATED** this ____________________________ day of __________________________ 20

**NAME: _____________________________________________**

<br>Signature **_____________________________________________**

Registration <br>instructions **_____________________________________________**

**<br> _____________________________________________**

_____________ Please check if the Common Shares certificates are to be delivered at the office where this Warrant Certificate is surrendered, failing which the Common Shares certificates will be mailed to the address in the registration instructions set out above.

If any Warrants represented by this Warrant Certificate are not being exercised, a new Warrant Certificate representing the unexercised Warrants will be issued and delivered with the Common Share certificate.

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**SCHEDULE "B"**

<u>**WARRANT TRANSFER FORM**</u>

**FOR VALUE RECEIVED**, the undersigned (the "**Transferor**") hereby sells, assigns and transfers unto

(name) **** (the "**Transferee**") of

(residential address)   <br>    

a total of ___________________ Warrants of the Sol Strategies Inc. (the "**Company**") registered in the name of the undersigned represented by the within certificate, and irrevocably appoints the Company as the attorney of the undersigned to transfer the said securities on the register of transfers for the said Warrants, with full power of substitution.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

❏ (A) the transfer is being made only to the Company;

❏ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and in compliance with any applicable local securities laws and regulations and the holder has provided herewith the Declaration for Removal of Legend attached as Appendix I to this Schedule "B" to the Warrant certificate, or

❏ (C) the transfer is being made within the United States or to, or for the account or benefit of, U.S. Persons, in accordance with a transaction that does not require registration under the U.S. Securities Act or applicable securities laws of any state of the United States and the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States, in which case the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

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❏ If transfer is to, or for the account or benefit of, a U.S. Person or a person in the United States, check this box.

NOTICE: The signature of this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement or any change whatever, and must be guaranteed by a bank, trust company or a member of a recognized stock exchange. The guarantor must affix a stamp bearing the actual words "Signature Guaranteed".

DATED this <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> day of _________________, 20<u> </u>.

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| | |
|:---|:---|
| _________________________________ |  |
| Signature Guaranteed | (Signature of transferring Warrantholder) |
|  | Name (please print) |
|  | Address |

---

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**Appendix I to Schedule "B" - Warrant Transfer Form** <br>**Declarations for Removal of Legend**

**To: Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of _______________ (Securities), represented by the Issuer's certificate number _______________ , to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off' the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

By:   Date:   <br> Signature

Name (please print) _______________________________________________________

**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer, ________________________ (the "Seller"), dated **________________________ ,** with regard to our sale, for such Seller's account, of the _______________________________ (Securities), represented by certificate number ________________________of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

_______________________________________________________<br>Name of Firm

By: <br>Authorized officer

Date: ___________________________________________________

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## Exhibit 99.65

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*Execution Version*

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this <u>"Agreement")</u> is dated as of January 8, 2025, between Sol Strategies Inc., a corporation incorporated under the laws of the Province of Ontario (the <u>"Company"),</u> and the purchaser identified on the signature pages hereto (the <u>"Purchaser").</u>

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to the exemption from registration under Rule 506(b) of Regulation D of the Securities Act of 1933, as amended (the <u>"Securities Act")</u> and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States, or the exclusion from registration pursuant to Regulation S under the Securities Act <u>(</u>"<u>Regulation S</u>"), as applicable, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

**ARTICLE I.** <br>**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions.</u> In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

<u>"$"</u> means Canadian dollars.

<u>"Act"</u> means the *Securities Act* (Ontario).

<u>"Affiliate"</u> means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with another Person, as such terms are used in and construed under Rule 405 under the Securities Act.

<u>"Applicable Securities Laws"</u> means all securities, corporate, and other laws, rules, regulations, and policies applicable in Canada, including the securities laws of each province and territory and the respective rules, regulations, instruments, blanket orders, blanket rulings under such laws together with applicable, published policies, policy statements, and notices of the Canadian Securities Administrators.

<u>"Board of Directors"</u> means the board of directors of the Company, as constituted from time to time.

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<u>"Business Day"</u> means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York and the City of Toronto are authorized or required by law to remain closed; <u>provided, however,</u> for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in the City of New York and the City of Toronto are generally are open for use by customers on such day.

<u>"Canadian Securities Administrators"</u> means, collectively, each of Canada's provincial and territorial securities regulators and securities regulatory authorities.

<u>"CDS"</u> means CDS Clearing and Depository Services Inc.

<u>"Closing"</u> means the closing of the purchase and sale of the Convertible Debenture Units pursuant to Section 2.1.

<u>"Closing Date"</u> means January 15, 2025, being the date that is five Trading Days following the date of the Disclosure Time, or such other date as may be agreed in writing by the parties.

<u>"Commission"</u> means the United States Securities and Exchange Commission.

<u>"Common Shares"</u> means the common shares in the capital of the Company and any other class of securities into which such securities may hereafter be reclassified or changed.

<u>"Common Shares Equivalents"</u> means any securities of the Company which would entitle the holder thereof to acquire at any time Common Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

<u>"Company Counsel"</u> means Fasken Martineau DuMoulin LLP with respect to Canadian matters and Dorsey & Whitney LLP with respect to U.S. matters.

<u>"Convertible Debenture Unit"</u> means a convertible debenture unit of the Company consisting of one (1) Debenture and 400 Warrants.

<u>"CSE"</u> means the Canadian Securities Exchange.

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<u>"CSE Approval"</u> means the approval (or conditional approval, which may be in the form of the Company not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Company posts notice of such transactions) of the CSE for listing and posting for trading the Debenture Shares and Warrant Shares.

<u>"Debenture"</u> means a $1,000 principal amount 2.5% unsecured debenture of the Company due on the Maturity Date, convertible at the discretion of the holder into Debenture Shares at a conversion price of $2.50 per Debenture Share and represented by a certificate substantially in the form set out as Exhibit "B" hereto.

<u>"Debenture Shares"</u> means the Common Shares issued or issuable to the Purchaser upon the conversion of the Debentures.

<u>"Disclosure Time"</u> means prior to 8:00 am (ET) on the first Trading Day following the execution of this Agreement.

<u>"Exchange Act"</u> means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

<u>"Governmental Authority"</u> means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

<u>"Information Record"</u> means information contained in any press release, material change report, financial statement, annual information form, annual or interim report, business acquisition report, proxy circular, prospectus, technical report, or other document of the Company which, from and after October 1, 2022, has, or has required to have been, filed on SEDAR+.

<u>"Institutional Accredited Investor"</u> means an institutional "accredited investor" within the meaning of Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) of Regulation D under the Securities Act.

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<u>"Material Adverse Effect"</u> means the effect resulting from any event, change, circumstance, fact, or state of being which could reasonably be expected to have a significant and adverse effect on the business, affairs, capital, liabilities (absolute, accrued, contingent, or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations, or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company, but excluding any such event, change, circumstance, fact, or state of being attributable to or arising from: (A) general economic or business conditions; (B) Canada, the U.S. or foreign economies, or financial, banking or securities markets in general, or other general business, banking, financial or economic conditions; (C) acts of God or other calamities, pandemics (including COVID-19 and any Governmental Authorities response thereto), national or international political or social conditions, including the engagement and/or escalation by the U.S. or Canada in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the U.S. or Canada or any of their territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of the U.S. or Canada; (D) the identity of the Purchaser or its Affiliates; (E) conditions generally affecting the industry in which the Company participates; (F) the public announcement, entry into, performance of, or compliance with obligations under this Agreement or the transactions contemplated hereby, or the identity of the parties; or (G) the failure of the Company meet or achieve the results set forth in any internal projections (but not the underlying facts giving rise to such failure unless such facts are otherwise excluded pursuant to the clauses contained in this definition); provided that the exclusions in clauses (A), (B), (C), (E) or (G) shall not apply to the extent such events are disproportionately adverse to the Company, taken as a whole, as compared to other companies in the industries in which the Company operates.

<u>"Maturity Date"</u> means the date that is the fifth anniversary of the Closing Date, on or before 5:00 p.m. (EST).

<u>"Person"</u> means an individual, firm, corporation, partnership, trust, fund, association, syndicate, organization or other organized group of persons, whether incorporated or not, and an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

<u>"ReIPO"</u> means an initial underwritten offering of the Common Shares pursuant to an effective Registration Statement filed under the Securities Act.

<u>"Registrable Securities"</u> means (a) the Debenture Shares, the Warrant Shares and the Interest Shares beneficially owned by the Purchaser from time to time, and (b) any Common Shares issued or issuable with respect to any shares described in subsection (a) above by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other reorganization or other similar event with respect to the Common Shares (it being understood that, for purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) the Commission has declared a Registration Statement covering such securities effective and such securities have been disposed of pursuant to such effective Registration Statement, or (ii) such securities are sold under circumstances in which all of the applicable conditions of Rule 144 are met.

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<u>"Registration Date"</u> means the date on which the Company becomes subject to Section 13(a) or Section 15(d) of the Exchange Act.

<u>"Registration Statement"</u> means any registration statement of the Company, including the prospectus, amendments and supplements (including shelf supplements) to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference in such registration statement.

<u>"Rule 144"</u> means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

<u>"Rule 904"</u> means Rule 904 of Regulation S promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

<u>"SEC"</u> means the U.S. Securities and Exchange Commission.

<u>"Securities"</u> means the Debentures, the Debenture Shares, the Warrants, the Warrant Shares and the Interest Shares.

<u>"SEDAR+"</u> means the System for Electronic Document Analysis and Retrieval+ of Canada.

<u>"Share Capital Summary"</u> means the summary of the Company's share capital as presented in <u>Schedule 3.1(e)</u> attached hereto.

<u>"Short Sales"</u> means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or borrowing Common Shares).

<u>"Subscription Amount"</u> means the aggregate amount to be paid for the Convertible Debenture Units purchased hereunder as specified below the Purchaser's name on the signature page of this Agreement and next to the heading "Subscription Amount," in Canadian dollars and in immediately available funds.

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<u>"Trading Day"</u> means a day on which the principal Trading Market is open for trading.

<u>"Trading Market"</u> means the TSX Venture Exchange, the Toronto Stock Exchange or the CSE (or any successors to any of the foregoing).

<u>"Transaction Documents"</u> means this Agreement, the debenture certificate evidencing the Debentures, warrant certificates evidencing the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

<u>"U.S. Person"</u> means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act.

<u>"U.S. Purchaser"</u> means a Purchaser who is a Person in the United States or a U.S. Person, or was offered the Securities, or executed or delivered this Agreement, in the United States, or was in the United States at the time the Purchaser's buy order originated, or is purchasing the Securities for the account of or benefit of a U.S. Person or a Person in the United States, or is otherwise subject to the securities laws of the United States. For greater certainty, a "U.S. Purchaser" does not include a Purchaser that is a discretionary or similar account (other than an estate or trust) that is excluded from the definition of "U.S. Person" pursuant to Rule 902(k)(2)(i) of Regulation S, and is held on behalf of a Person that is not a U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States.

<u>"United States"</u> means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

<u>"VWAP"</u> means the volume-weighted-average-price of the Common Shares.

<u>"Warrant"</u> means a Common Share purchase warrant delivered to the Purchaser at the Closing, exercisable immediately into one Warrant Share at the Warrant Exercise Price, with a term ending on the Maturity Date and represented by a certificate substantially in the form set out as Exhibit "C" hereto.

<u>"Warrant Shares"</u> means the Common Shares issuable upon exercise of the Warrants.

<u>"Warrant Exercise Price"</u> means $2.50.

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**ARTICLE II.**

**PURCHASE AND SALE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purchase.</u> Upon the terms and subject to the conditions set forth herein, the Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase, from the Company an aggregate of 2,857.143 Convertible Debentures Units on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Debenture and Warrant Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Convertible Debenture Unit is comprised of one Debenture and 400 Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All or a portion of the principal amount of the Debentures and accrued and unpaid interest as of the date of conversion shall be convertible into Debenture Shares at any time and from time to time following Closing at the option of the holder at a conversion price of $2.50 per Debenture Share, in accordance with the terms of the certificate evidencing the Debentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Debentures bear interest at a rate of 2.5% per annum from the date of issue, payable semi-annually in cash, or at the election of the Company (subject to certain limits), in freely tradeable Common Shares at a price per Common Share equal to the 20 trading day VWAP of the Common Shares on the CSE, calculated up to the date on which such interest is owing pursuant to the Debenture <u>("Interest Shares").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Debentures will mature and the principal amount thereof and all accrued and unpaid interest thereon shall become fully payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Debentures shall rank *pari passu* with all outstanding and after-issued unsecured debt of the Company, provided that if the Company incurs additional indebtedness (the <u>"Additional Debt")</u> following the date of this Agreement which indebtedness guaranteed by any subsidiaries or is secured by recourse against the assets of the Company or any subsidiaries, at the option of the Purchaser, the debt evidenced by the Debentures shall be guaranteed and secured, as applicable, on substantially the same basis as the Additional Debt and rank *pari passu* with such Additional Debt, provided that the Purchaser shall enter into substantially the same credit support and security documents as the lender of such Additional Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Warrant entitles the Purchaser to acquire one (1) Warrant Share at any time following Closing at the option of the holder at an exercise price equal to the Warrant Exercise Price until the Maturity Date, in accordance with the terms of the certificate evidencing the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Closing.</u> On the Closing Date, the Purchaser shall deliver to the Company, via wire transfer, immediately available funds equal to the Subscription Amount, and the Company shall deliver to the Purchaser certificates representing the Debentures and Warrants comprising the Convertible Debenture Units, and the Company and the Purchaser shall deliver the other items set forth in Section 2.4 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.4 and 2.5, the Closing shall occur at the offices of the Company Counsel in Canada or such other location as the parties shall mutually agree.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Deliveries.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate evidencing the Debentures, registered in the name of the Purchaser, setting out the principal amount, interest rate, interest payment schedule, and conversion terms, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate evidencing the Warrants, registered in the name of the Purchaser, entitling the Purchaser to acquire Common Shares, with the number of Common Shares, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) this Agreement duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Company certifying the matters set forth in Sections 2.5(b)(i) to 2.5(b)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreements and other documents as the Purchaser may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement duly executed by the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Purchaser is a U.S. Purchaser, then the U.S. Purchaser is purchasing the Securities as an Institutional Accredited Investor, and is delivering a duly completed and executed copy of a U.S. Accredited Investor Confirmation Certificate (including the questionnaire and certifications included therein) in the form attached hereto as <u>Exhibit "A"</u> (a <u>"U.S. Accredited Investor Confirmation Certificate");</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Subscription Amount by wire transfer to the account specified in writing by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Purchaser certifying the matters set forth in Sections 2.5(a)(i) and 2.5(a)(ii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreement and other documents as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Closing Conditions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless any representations and warranties are (x) qualified by materiality, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the delivery by the Purchaser of the items set forth in Section 2.4(b) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless any representations and warranties are (x) qualified by materiality or Material Adverse Effect, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of this Agreement, no Material Adverse Effect shall have occurred;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the delivery by the Company of the items set forth in Section 2.4(a) of this Agreement.

**ARTICLE III.**

**REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Representations and Warranties of the Company.</u> The Company hereby makes the following representations and warranties to the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company: (a) is incorporated and validly subsisting corporation under the laws of its jurisdiction of incorporation and is up-to-date in all filings required to be made by it under the laws of its jurisdiction of existence; (b) has all requisite corporate power, capacity and authority to carry on its business as now conducted or proposed to be conducted and to execute and deliver the Agreement and to carry out the transactions contemplated by this Agreement and carry out the obligations hereunder; and (c) is duly qualified, licensed or registered to transact business in each jurisdiction in which such qualification, license or registration is required, whether by reason of the ownership or leasing of property or the conduct of business, and is carrying on business in material compliance with all applicable laws, rules and regulations of each such jurisdiction. Notwithstanding the foregoing, the Purchaser is aware that certain securities regulatory authorities, including the U.S. Securities and Exchange Commission, may take positions regarding the classification of certain assets, operations, or activities of the Company as involving securities or derivatives, which could, individually or collectively, affect the business, operations, or regulatory obligations of the Company, including that (a) the SEC has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security, and (b) the Canadian Securities Administrators **and** Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction). The Company has taken all necessary corporate action to authorize the execution and delivery of this Agreement, and the performance of its obligations under this Agreement and to observe and perform its obligations hereunder in accordance with the provisions hereof, including the creation, issue and sale of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All necessary corporate actions have been taken by the Company to authorize the creation, issue and sale of the Securities, and the delivery to the Purchaser of certificates evidencing the Debentures and the Warrants. On the Closing Date, the Debentures and the Warrants will be, and the Debenture Shares will be at the time of conversion of the Convertible Debenture Units and the Warrant Shares will be at the time of exercise of the Warrants, and the Interest Shares will be at the time of the election made by the Company, free and clear of all liens and restrictions on transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the due conversion of the Debentures in accordance with the terms thereof, the due exercise of the Warrants in accordance with the terms thereof (including payment of the Warrant Exercise Price) and the due election to pay interest in Interest Shares under the Debentures, the Debenture Shares, the Warrant Shares and the Interest Shares, respectively, will be validly issued and outstanding as fully paid and non-assessable Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The capitalization of the Company as of the date hereof is, and except for the exercise of convertible securities in the ordinary course after the date hereof will be, as set forth on the Share Capital Summary. As of the date hereof and prior to the issuance of the Securities contemplated by this Agreement, no shareholder other than as set out on the Share Capital Summary holds 5% or more of the Common Shares. There are no plans to amend the articles or by-laws of the Company. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except as a result of the purchase and sale of the Securities and as set forth on the Share Capital Summary, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Common Shares, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional Common Shares or Common Shares Equivalents. The issuance and sale of the Securities will not obligate the Company to issue Common Shares or other securities to any Person (other than the Purchaser). There are no outstanding securities or instruments of the Company with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company. There are no outstanding securities or instruments of the Company that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a security of the Company. The Company does not have any share appreciation rights or "phantom share" plans or agreements or any similar plan or agreement. All of the outstanding shares of share capital of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all applicable securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No approval or authorization of any shareholder or, other than the CSE Approval, others, is/are required for the issuance and sale of the Securities. There are no shareholders agreements, pooling agreements, voting agreements or other similar agreements with respect to the share capital of the Company to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company is a "reporting issuer" in good standing under Applicable Securities Laws in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, is not on the list of defaulting issuers as maintained by the applicable Canadian Securities Administrators for a default of any requirement of Applicable Securities Laws, and neither the CSE nor any other regulatory authority having jurisdiction over the Company has issued any order preventing or suspending trading of any securities of the Company. The Company is also in compliance in all material respects with all Applicable Securities Laws, and all material filings and fees required to be made and paid by the Company pursuant to Applicable Securities Laws and general corporate laws have been made and paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company (i) was not and is not an "ineligible issuer" (as defined in Rule 405 under the Securities Act) (an <u>"Ineligible Issuer"),</u> without taking into account any determination by the Commission pursuant to Rule 405 under the Securities Act that it is not necessary that the Company be considered an Ineligible Issuer, and (ii) was and is a "foreign private issuer" within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the knowledge of the Company, except as set forth in the Share Capital Summary, no person beneficially owns, or exercises control or direction over, directly or indirectly, 5% or more of the outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company does not own or control, directly or indirectly, any interest in any corporation, partnership, joint venture or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Common Shares are listed and posted for trading on the CSE. No order ceasing or suspending trading in any securities of the Company or prohibiting the issue, sale and delivery (as applicable) of Common Shares or trading of any of the Company's securities has been issued and is in effect and no proceedings for such purpose has been instituted or are pending or, to the Company's knowledge, contemplated or threatened. The Company has not taken any action which would be reasonably expected to result in the delisting or suspension of the Common Shares on or from the CSE and the Company is in material compliance with the rules and regulations of the CSE.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Company) pending or, to the knowledge of the Company, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, against or by the Company or any Affiliate of the Company that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and the Company is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. There are no outstanding and unsatisfied judgements, decrees, orders, writs, injunctions, awards, rules, policies or regulations of any court, tribunal or other Governmental Authority or other judicial order binding upon or enforceable against the Company which may affect the performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company is in compliance in all material respects with its disclosure obligations, and has filed all documents and information required to be filed by it under Applicable Securities Laws. All of the documents filed as part of the Information Record, as of their respective dates of filing and as of the date of any amendments thereto, complied in all material respects, both in form and content, with the requirements of Applicable Securities Laws, and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. There is no fact of specific application to the Company known to the Company which the Company has not publicly disclosed, or so far as the Company can reasonably foresee, could materially adversely affect, the assets, liabilities (contingent or otherwise), affairs, business, capital, condition (financial or otherwise), operations or prospects of the Company or the ability of the Company to perform its obligations under this Agreement. The Company has not filed any confidential material change reports with any securities regulatory authority that remains confidential. The Company is not subject to a continuous disclosure review with any Canadian Securities Administrators nor are there any outstanding unresolved comments from any Canadian Securities Administrators in respect of the disclosure made in the Company's Information Record. The Company is not aware of any circumstances presently existing under which liability is or would reasonably be expected to be incurred under Part XXIII.1 of the *Securities Act* (Ontario) and analogous provisions under Applicable Securities Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance: (a) that transactions are completed in accordance with the general or specific authorization of management and directors of the company; (b) that transactions are recorded as necessary to permit the preparation of consolidated financial statements for the Company in conformity with International Financial Reporting Standards ("<u>IFRS</u>") and to maintain asset accountability; (c) that access to assets of the Company is permitted only in accordance with the general or specific authorization of management and directors of the Company; (d) that the recorded accountability for assets of the Company is compared with the existing assets of the Company at reasonable intervals and appropriate action is taken with respect to any differences therein; and (e) regarding the prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Company that could have a material effect on the Company's interim or annual financial statements. The Company is in compliance in all material respects with National Instrument 52-109 - *Certification of Disclosure in Issuer's Annual and Interim Filings* of the Canadian Securities Administrators, as applicable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company Financial Statements were prepared in accordance with the IFRS, as issued by the International Accounting Standards Board, consistently applied in accordance with past practice and no Material Adverse Effect has occurred since October 1, 2023. The Company Financial Statements (i) comply as to form in all material respects with the requirements of Applicable Securities Laws; (ii) have been prepared in conformity with IFRS, consistently applied throughout the periods covered thereby, and all adjustments necessary for a fair presentation of the results for such periods have been made in all material respects; (iii) fairly present the consolidated financial condition of the Company as at the respective dates thereof; (iv) contain no misrepresentations and fairly present the consolidated results of operations, cash flow and income of the Company during the respective fiscal periods covered thereby; and (v) contain and reflect adequate provision or allowance for all reasonably anticipated liabilities, expenses and losses of the Company. Other than as disclosed in the Company Financial Statements (including any notes thereto), there are no off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the Company with unconsolidated entities or other persons that have or could reasonably be expected to have a Material Adverse Effect. There has been no change in accounting policies or practices of the Company other than as set out in the Company Financial Statements. For purposes of this Section 3.1(n), "Company Financial Statements" means the audited consolidated financial statements of the Company for the financial years ended September 30, 2023 and 2022 and the unaudited consolidated financial statements of the Company for the nine months ending June 30, 2024 and 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Kingston Ross Pasnak LLP, the Company's current auditors, who audited the Company Financial Statements and who provided their audit report thereon, are independent public accountants as required under Applicable Securities Laws and there has never been a reportable event (within the meaning of National Instrument 51-102 - *Continuous Disclosure Obligations)* between the Company and Kingston Ross Pasnak LLP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The audit committee of the board of directors of the Company is comprised and operates in accordance with the requirements of National Instrument 52-110 *- Audit Committees.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) TSX Trust Company has been duly appointed by the Company as the registrar and transfer agent for the Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To the best of its knowledge, there are no material facts or material changes related to the Company that have not been generally described to the Purchaser. Without limiting the generality of the foregoing, since October 1, 2023, the Company has carried on business in the ordinary course, and except as disclosed in the Corporation's Information Record, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any material change in the consolidated assets, properties, capital, liabilities or obligations (absolute, accrued, contingent or otherwise), business, business prospects, affairs, condition (financial or otherwise) or results of operations of the Corporation, or any transactions entered into which are material with respect to the Company on a consolidated basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any material change in the share capital or long-term debt of the Company, other than as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any declaration, setting aside or payment of any dividend, or other distribution with respect to any shares in the capital of the Company, or any direct or indirect redemption, purchase or other acquisition of any shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the incurrence of any material capital expenditure or the making of any commitment therefor, or the incurrence of any obligation or liability, direct or indirect, contingent or otherwise, which individually, or in the aggregate, is material to the Company on a consolidated basis, other than in the ordinary course of business of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any change in accounting or tax policies or practices followed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Insolvency

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company is not an "insolvent person", has not committed an "act of bankruptcy", in each case, within the meaning of the *Bankruptcy and Insolvency Act* (Canada) and has not sought protection from the creditors thereof before any court or pursuant to any legislation, proposed a compromise or arrangement to the creditors thereof generally, taken any act or undertaken or become subject to a proceeding with respect to a compromise or arrangement, taken any act or undertaken or become subject to or have been threatened with a proceeding to be declared bankrupt, made any assignment for the benefit of its creditors, had any person holding any lien or receiver take possession of any of the property thereof, had an execution or distress become enforceable or levied upon any portion of the property thereof or had or have been threatened with any petition for a receiving order in bankruptcy filed against it or to declare it bankrupt or insolvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No administrator, administrative receiver or any other receiver, receiver-manager or manager has been appointed or threatened to be appointed by any person in respect of the Company or all or any of its assets and, to the knowledge of the Company, no steps have been taken to initiate any such appointment. No analogous appointments have been made or initiated under any laws applying to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No order has been made, no resolution has been passed and no petition has been filed or threatened against the Company for the winding up, dissolution or liquidation of the Company, or for a provisional liquidator to be appointed in respect of the Company and no petition has been presented or threatened and no meeting has been convened for the purpose of the winding up, dissolution or liquidation of the Company. The Company is not subject to analogous proceedings under any laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Except as disclosed in the Company's Information Record, the Company has not approved or entered into any agreement in respect of, and has no knowledge of: (a) the purchase of material assets or any interest therein or the sale, transfer or other disposition of any material portion of its assets or any interest therein currently owned, directly or indirectly, by the Company whether by asset sale, transfer of shares or otherwise; (b) the change of control (by sale or transfer of shares or sale of all or substantially all of the property and assets of the Company) of the Company; or (c) a proposed or planned disposition of Common Shares by any shareholder who owns, directly or indirectly, 10% or more of the outstanding Common Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company has paid when due all applicable taxes of whatsoever nature for all tax years prior to the date hereof to the extent that such taxes have become due or have been alleged to be due. The charges, accruals and reserves on the books of the Company in respect of any liability for taxes for any year not finally determined are sufficient to meet any reasonable assessment or reassessment for additional taxes for any year not finally determined. The Company has duly and timely filed or caused to be filed within the times and within the manner prescribed by law, all federal, provincial, local and foreign tax returns and reports which are required to be filed by or with respect to the Company, such returns and reports are true, complete and correct in all material respects, and there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by the Company or the payment of any material tax, governmental charge, penalty, interest or fine against any of them. The Company is not delinquent in the payment of any taxes. There are no pending tax audits of any returns of taxes. No deficiency or addition to any taxes or interest or penalty for any taxes has been proposed, asserted or assessed against the Company. The Company has duly and timely withheld or collected and remitted to the appropriate taxing authority (or made adequate provision for the remittance of) all amounts required by law to be withheld or collected and remitted by it in respect of any taxes, governmental charges or assessments. There are no material actions, suits, proceedings, investigations or claims now threatened or, to the knowledge of the Company, pending against the Company which could result in a material liability in respect of taxes, charges or levies of any governmental authority, penalties, interest, fines, assessments or reassessments or any matters under discussion with any Governmental Authority relating to taxes, governmental charges, penalties, interest, fines, assessments or reassessments asserted by any such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company is not a party to or bound or affected by any commitment, agreement or document containing any covenant which expressly limits the freedom of the Company to compete in any line of business, transfer or move any of its assets or operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Other than as disclosed in the Company's Information Record, the Company has not guaranteed or otherwise given security for or agreed to guarantee or give security for any liability, debt or obligation of any other person. The Company does not have any material liabilities, obligations, indebtedness or commitments whether accrued, absolute, contingent or otherwise, which are not disclosed or referred to in the Company's Information Record, other than liabilities, obligations or indebtedness or commitments incurred after the last period covered by the Company's Information Record in the normal course of business or in connection with the purchase and sale herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company is not in violation of its constating documents. None of the purchase and sale herein, the execution, delivery and performance of this Agreement, the compliance by the Company with the terms hereof, or the consummation of the transactions contemplated herein, including, without limitation, the issuance and sale of the Securities, does or will:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require approval, authorization, consent, order or agreement of, or filing, registration, qualification or recording with, any governmental agency, body or authority, court, stock exchange, securities regulatory authority or other person, except as have already been obtained or may be required under Applicable Securities Laws and the policies of the CSE and will be obtained prior to the Closing Date (other than customary post-closing filings required to be submitted within the applicable time frame pursuant to Applicable Securities Law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any material respect (in the cases of (3) to (5)): (A) result in any breach or violation; (B) be in conflict with; (C) constitute a default under; (D) give rise to a right of termination, cancellation or acceleration of any obligation; (E) result in the loss of or lien upon any of the consolidated properties or assets of the Company; or (F) create a state of facts which (after notice or lapse of time or both) would give rise to any of the foregoing, in each case, under:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the articles or by-laws of the Company, or any other constating document of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any resolution passed by the directors (or any committee thereof) or shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any statute, law or any judgment, decree, order, rule, policy or regulation of any court, Governmental Authority, arbitrator, stock exchange or securities regulatory authority applicable to the Company or any of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any contract, agreement, or indenture to which the Company is a party or is bound or by which any of their respective properties or assets are bound (including any indentures, mortgages, deeds of trust, leases or other agreements or instruments); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any authorization held or obtained by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the Company defaulting on the payment of any material obligation owed by it which is now due; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) trigger any change of control provisions, or other contingent payments, in any agreements the Company is party to, nor will the Company's board pass a resolution that states that the transactions carried out in connection with this Agreement constitutes a change of control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Other than as disclosed in the Information Record, none of the directors or officers of the Company are now, or have ever been: (a) subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from acting as a director or officer of a public company or of a company listed on a particular stock exchange; or (b) subject to an order preventing, ceasing or suspending trading in any securities of the Company or other public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Employees and Employment Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All material employment agreements, consulting agreements, severance agreements and change of control agreements in respect of any NEOs (as defined in Form 51102F6 - *Statement of Executive Compensation),* and all Employee Plans have been, in all material respects, disclosed in the Information Record to the extent required under Applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company is in compliance in all material respects with all laws respecting employment and employment practices, terms and conditions of employment, occupational health and safety, pay equity and wages, and has not and is not engaged in any unfair labour practice, and there are no current or pending claims, complaints, notices, outstanding decisions, orders or settlements under any human rights legislation, employment standards legislation, workers' compensation legislation, occupational health and safety legislation or similar legislation, nor has any event occurred which would reasonably be expected to give rise to any of the foregoing. The Company has not received any notice of any unresolved matter and there are no outstanding orders under any employment or human rights legislation in any jurisdiction in which the Company carries on business or has employees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each plan for retirement, bonus, stock purchase, profit sharing, stock option, deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation, legal benefits, unemployment benefits, vacation, pension, incentive or otherwise contributed to, or required to be contributed to, by the Corporation for the benefit of any current or former director, officer, employee or consultant of the Corporation (collectively, the <u>"Employee Plans"),</u> has been maintained in material compliance with its terms and with the requirements prescribed by any and all laws that are applicable to such plan. The Company has no, nor has it ever had, any pension plan (as such term is defined in the relevant legislation of the applicable jurisdiction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All material accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, federal, provincial or local pension plan premiums, accrued wages, salaries and commissions and payments for any plan for any officer, director, employee or consultant of the Company have been accurately reflected in the books and records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) There is no labour disruption, strike, dispute, slowdown, stoppage or conflict involving the Company, and there is no complaint or grievance pending or, to the knowledge of the Company, threatened from any labour groups. The Company is not party, or otherwise subject to, any collective bargaining agreement and no collective bargaining agreement is currently being negotiated by the Company. There has not been, and there is not currently, any other labour trouble which is having a Material Adverse Effect or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Company owns or possesses adequate enforceable rights to use all trademarks, copyrights and trade secrets, if any, used or proposed to be used in the conduct of its business and, to the knowledge of the Company, the Company is not infringing upon the rights of any other person with respect to any such trademarks, copyrights or trade secrets and no other person has infringed any such trademarks, copyrights or trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Except as disclosed in the Information Record:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none of the directors, officers or employees of the Company, any known holder of more than 10% of any class of shares of the Company, or any known associate or affiliate of any of the foregoing persons (as such terms are defined in the *Securities Act* (Ontario)), has had any material interest, direct or indirect, in any material transaction, within the previous two years or has any material interest in any proposed material transaction involving the Company which, as the case may be, materially affected, is material to or will materially affect the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the knowledge of the Company, no insider of the Company (as defined in Applicable Securities Laws) has a present intention to sell any securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of the Corporation, except as disclosed on SEDI, no insider of the Corporation (as defined in applicable Securities Laws) has sold any securities issued by the Company or otherwise taken steps to reduces its, his or her financial exposure to the price or value of the Common Shares within the 15 days prior to the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except for usual director, employee or consulting arrangements made in the ordinary and normal course of business, the Company is not party to any contract or understanding with any director, officer, employee, securityholder or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no director, officer or employee of the Corporation and no person which is an affiliate or associate of the Company, owns, directly or indirectly, any interest in (except for equity securities as disclosed in the Company's Information Record), or is a director, officer employee or consultant of any person which is, or is engaged in, a business competitive with the Company, which materially adversely impacts, or would reasonably be expected to materially and adversely impact, their ability to duly properly perform the services to be performed by such person for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Company does not owe any monies to, have any present loans to, nor has it borrowed any monies from or is otherwise indebted to, any director, officer, employee, securityholder of the Company, or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with the Company, except for usual employee reimbursements and compensation paid in the ordinary and normal course of its business; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to the knowledge of the Company, no director, officer employee or securityholder of the Company has any cause of action or other claim whatsoever against, or owes any amount to, the Company, except for claims in the ordinary and normal course of the business of the Company such as for accrued vacation pay or other amounts or matters which would not be material to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) The properties and assets in which the Company has a direct or indirect economic interest are insured against loss or damage in such amounts that are customary for the business in which they are engaged with responsible insurers on a basis consistent with insurance obtained by reasonably prudent participants in comparable businesses, and such coverage is in full force and effect, and the terms of any policies in respect thereof have not been breached and the insured has not failed to promptly give any notice or present any material claim thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) None of the Company nor, to the knowledge of the Company, any director, officer, employee, consultants, representative, agent or affiliate or other person acting on behalf of the Company, is aware of or has taken any action, directly or indirectly, that would reasonably be expected to result in a violation by such persons of the *United States Foreign Corrupt Practices Act of 1977,* as amended, and the rules and regulations thereunder, the *Corruption of Foreign Public Officials Act* (Canada), as amended or the similar laws of any other jurisdiction applicable to the Company (collectively, the <u>"Anti-Corruption Laws")</u> and the Company has conducted its businesses in compliance with the Anti-Corruption Laws and has instituted and maintains policies and procedures designed to ensure continued compliance therewith. There are no proceedings under any Anti-Corruption Laws pending against the Company or, to the knowledge of the Company, threatened against or affecting the Company. None of the Company, nor to the knowledge of the Company, any director, officer, employee, consultant, representative or agent of the foregoing, has: (a) conducted or initiated any review, audit, or internal investigation that concluded the Company, or any director, officer, employee, consultant, representative or agent of the foregoing violated any anti-bribery or anticorruption laws or committed any material wrongdoing; or (b) made a voluntary, directed, or involuntary disclosure to any Governmental Authority responsible for enforcing anti-bribery or anti-corruption laws, in each case with respect to any alleged act or omission arising under or relating to non-compliance with any such laws, or received any notice, request, or citation from any person alleging non-compliance with any such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) The operations of the Company are, and have been conducted at all times in compliance with the financial record-keeping and reporting requirements of anti-money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority to which the Company is subject, including the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (collectively, the <u>"Money Laundering Laws"),</u> and no action, suit or proceeding by or before any Governmental Authority or body or arbitrator involving the Company or with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) None of the Company, nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company is currently the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control, the United Nations Security Council, the European Union, His Majesty's Treasury, or other relevant sanctions authority (collectively, <u>"Sanctions"),</u> nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the purchase and sale hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity: (a) to fund any activities of or business with any person or entity, or in any country or territory, that, at the time of such funding, is the subject of Sanctions; or (b) in any other manner that will result in a violation by any person or entity (including any person or entity participating in the transaction, whether as agent, advisor, investor or otherwise) of Sanctions. The Company has not knowingly engaged in and is not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any country that is subject to Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) The Company is not required to be registered as an investment company under the United States *Investment Company Act* of 1940, as amended, and is not relying on any exemption therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) To the knowledge of the Company, the Company has not withheld from the Purchaser any fact or information relating to the Company or any of the transactions contemplated hereby that would be material to a reasonable prospective investor in the Company. No representation or warranty by the Company in this Agreement and no statement contained in the Company's Information Record or any certificate or other document furnished or to be furnished to the Purchaser under this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Representations and Warranties of the Purchaser.</u> The Purchaser hereby makes the following representations and warranties to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has the legal capacity to enter into and be bound by this Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Purchaser enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the entering into of this Agreement and the transactions contemplated hereby will not, in any material respect, result in a violation of any of the terms or provisions of, any law applicable to the Purchaser, or any agreement to which the Purchaser is a party or by which it is bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Purchaser has not received or been provided with, nor has the Purchaser requested, nor does the Purchaser have any need to receive, any prospectus or offering memorandum, or any other document describing the business and affairs of the Company which has been prepared for delivery to, and review by, prospective purchasers in order to assist the Purchaser in making an investment decision in respect of the acquisition contemplated hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Purchaser has not become aware of any advertisement in printed media of general and regular paid circulation (or other printed public media), radio, television or telecommunications or other form of advertisement (including electronic display) with respect to the distribution of the Securities;

(0 it has relied solely upon information publicly available on SEDAR+ relating to the Company and not upon any verbal or written representation as to fact or otherwise made by or on behalf of the Company (except as set forth herein) and it does not have knowledge of any material fact about the Company that has not been publicly disclosed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if the Purchaser is a U.S. Purchaser, at the time the Purchaser was offered the Debentures and Warrants, it was, and as of the date hereof it is, an Institutional Accredited Investor and has completed, executed and delivered the Company Exhibit "A" hereto and makes the representations and warranties contained therein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Purchaser acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no securities or similar regulatory authority has reviewed or passed on the merits of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there is no government or insurance covering the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there are risks associated with the purchase of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there are restrictions on the Purchaser's ability to resell the Securities and it is the responsibility of the Purchaser to find out what those restrictions are and to comply with them before selling any of the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company or its agent has advised the Purchaser that the Company is relying on an exemption from the requirements to provide the Purchaser with a prospectus and to sell the Securities through a person or company registered to sell securities under Applicable Securities Laws and, as a consequence of acquiring the Securities pursuant to these exemptions, certain protections, rights and remedies provided by Applicable Securities Laws, including statutory rights of rescission or damages, will not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it acknowledges that no representation has been made to it: as to the future value or price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to the future value or price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any person will resell or repurchase the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that any person will refund the purchase price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Company may complete additional financings in the future in order to develop the business of the Company and to fund its ongoing development; that there is no assurance that such financings will be available and, if available, on reasonable terms; any such future financings may have a dilutive effect on current securityholders, including the Purchaser; and that if such future financings are not available, the Company may be unable to fund its ongoing development and the lack of capital resources may result in the failure of its business venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) it has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and it, or, where it is not purchasing as principal, each beneficial purchaser, is able to bear the economic risk of loss of its investment and the Purchaser is capable of assessing the proposed investment as a result of the Purchaser's financial experience or as a result of advice received from a registered person other than the Company or any affiliates hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) it understands that the Securities are being offered for sale only on a "private placement" basis and that the sale and delivery of the Securities is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or the preparation of an offering memorandum in prescribed form or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum in prescribed form and that certain protections, rights and remedies provided by applicable securities legislation, in connection with the filing of a prospectus may not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if required by applicable securities legislation, regulations, rules, policies or orders or by any securities commission, stock exchange or other regulatory authority, the Purchaser will execute, deliver, file and otherwise assist the Company in filing, such reports, undertakings and other documents with respect to the issue of the Securities as may be required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) it will not resell the Securities or any of them, except in accordance with the provisions of the Applicable Securities Laws and the rules of the CSE or such other Trading Market as the Common Shares trade on at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the funds representing the Subscription Amount advanced by the Purchaser will not be proceeds of crime under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the <u>"PCMLTFA")</u> or the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, as may be amended from time to time (the <u>"PATRIOT Act"</u>). The Purchaser acknowledges that the Company may be required by law to confidentially disclose the Purchaser's information pursuant to the PCMLTFA and the PATRIOT Act. To the best of the Purchaser's knowledge: (i) the funds representing the Subscription Amont are not derived from criminal activity in any jurisdiction; (ii) the funds representing the Subscription Amount are not being provided on behalf of an unidentified person or entity to the Purchaser; and (iii) the Purchaser shall promptly notify the Company if this representation becomes untrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) it has been independently advised as to the restrictions with respect to trading in the Securities imposed by applicable securities legislation, confirms that no representation has been made to it by or on behalf of the Company with respect thereto, acknowledges that it is aware of the characteristics of the Securities, the risks relating to an investment therein and of the fact that it may not be able to resell the Securities except in accordance with limited exemptions under applicable securities legislation and regulatory policy until expiry of the applicable restriction period and compliance with the other requirements of applicable law, and it agrees that any certificates representing the Securities may bear such legends as are required under applicable securities law and/or policies of applicable securities exchanges indicating that the resale of such securities is restricted; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Purchaser acknowledges that it has been encouraged to and should obtain independent legal, income tax and investment advice with respect to its hereunder and accordingly, has been independently advised as to the meanings of all terms contained herein relevant to the Purchaser for the purposes of giving representations, warranties and covenants under this Agreement.

**ARTICLE IV.**

**OTHER AGREEMENTS OF THE PARTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Transfer Restrictions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, Rule 904 or Rule 144 (if available), or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchaser acknowledges that the Company may be required to file with the Canadian Securities Administrators in Ontario a report regarding the trade. The Purchaser acknowledges that such report may require the Company to disclose the Purchaser's full legal name, residential address, telephone number and email address and the number of Securities the Purchaser purchased, the purchase price for such Securities and specific details of the prospectus exemption relied upon under applicable securities laws to complete such purchase, including how the Purchaser qualifies for such exemption. The Purchaser consents to the disclosure of such information and acknowledges that such information is made available to the public under securities legislation of Ontario. The Purchaser acknowledges that this information is collected indirectly by the applicable securities regulatory authority or regulator under the authority granted to it under, and for the purposes of the administration and enforcement of, the securities legislation and that the Purchaser may contact the applicable securities regulatory authority or regulator by way of the following information for more information regarding the indirect collection of such information: Ontario Securities Commission, 20 Queen Street West, 22nd Floor Toronto, Ontario M5H 3S8, Telephone: (416) 593- 8314, Toll free in Canada: 1-877-785-1555, Facsimile: (416) 593-8122, Email: exemptmarketfilings@osc.gov.on.ca<u>,</u> Public official contact regarding indirect collection of information: Inquiries Officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Integration.</u> The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities hereunder or that would be integrated with the offer or sale of the Securities hereunder for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval of the sale of the Securities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Securities Laws Disclosure; Publicity.</u> The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a material change report under the Applicable Securities Laws, with the Canadian Securities Administrators within the time required by the Applicable Securities Laws. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly disclosed all material, nonpublic information delivered to the Purchaser by the Company, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Listing of Common Shares.</u> The Company hereby agrees to use commercially reasonable efforts to maintain its status as a "reporting issuer" (or the equivalent thereof) in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, not be in default in respect of the Applicable Securities Laws and the listing or quotation of the Common Shares on a Trading Market, and concurrently with the Closing, the Company shall have secured the listing of all of the Debenture Shares and Warrant Shares on the CSE and will secure the listing of all Interest Shares on the CSE. The Company further agrees, if the Company applies to have the Common Shares traded on any other Trading Market, it will then include in such application all of the Debenture Shares, Warrant Shares and Interest Shares, and will take such other action as is necessary to cause all of the Debenture Shares, Warrant Shares and Interests Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Shares on a Trading Market and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Shares for electronic transfer through CDS, including, without limitation, by timely payment of fees to CDS in connection with such electronic transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Certain Transactions and Confidentiality.</u> The Purchaser covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company's securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4. The Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, the Purchaser will maintain the confidentiality of the existence and terms of this transaction. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser does not make any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4, (ii) the Purchaser shall not be hereby restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Form D; Blue Sky Filings.</u> If any of the Securities are issued to a U.S. Purchaser pursuant to Rule 506(b) of Regulation D under the Securities Act, the Company agrees to timely file a Form D with respect to the Securities as required under Regulation D under the Securities Act and to provide a copy thereof, promptly upon request of the U.S. Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the U.S. Purchaser at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the U.S. Purchaser. The Company also agrees to make all required filings under Applicable Securities Laws in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>PFIC Matters.</u> If a U.S. Purchaser so requests in writing for any taxable year of the Company, the Company, after consulting with its outside accounting firm, shall within 15 days notify the U.S. Purchaser in writing that either (A) the Company was not a PFIC for such year, or (B) the Company was a PFIC for such year, in which event the Company shall provide to the U.S. Purchaser, upon the reasonable written request of the U.S. Purchaser, the information reasonably necessary to allow the U.S. Purchaser to elect to treat each of the Company as a "qualified electing fund" (within the meaning of Code Section 1295) for such year, including a "PFIC Annual Information Statement" as described in U.S. Treasury Regulation Section 1.1295-1(g)(1) (or any successor Treasury Regulation). For purposes hereof, "PFIC" means a "passive foreign investment company" within the meaning of Section 1297(a) of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Registration Rights.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than 180 days after the earlier of (i) the consummation of a ReIPO and (ii) the Registration Date, the Company shall, at its expense, use its reasonable best efforts to qualify and remain qualified to register the offer and sale of securities under the Securities Act pursuant to a Registration Statement on Form F-10 or any successor form thereto using a Canadian short-form prospectus under MJDS (or if eligible, on Form S-3 or F-3 or any successor form thereto). At such time as the Company shall have qualified

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for the use of a Registration Statement on such Form, the holders of Registrable Securities shall have the right to request an unlimited number of registrations under the Securities Act of all or any portion of their Registrable Securities pursuant to a Registration Statement on such Form or any similar short-form Registration Statement (each, a <u>"Short-Form Registration").</u> Each request for a Short-Form Registration shall specify the number of Registrable Securities requested to be included in the Short-Form Registration. Upon receipt of any such request, the Company shall promptly (but in no event later than 10 days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have five days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall prepare and file with (or confidentially submit to) the Commission a Registration Statement on such Form covering all of the Registrable Securities that the holders thereof have requested to be included in such Short-Form Registration within five days after the date on which the initial request is given and shall use its reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, but not later than the Target Filing Date, the Company shall, at its expense, (i) prepare and file with (or confidentially submit to) the Commission a Registration Statement on Form F-10 a Canadian shelf prospectus under MJDS (or if eligible, on Form S-3 or F-3) or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration Statement")</u> that covers all Registrable Securities then outstanding for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration")</u> and (ii) use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as practicable thereafter. For purposes hereof, <u>"Target Filing Date"</u> shall mean the date which is 20 days after the Company becomes qualified to register the offer and sale of securities under the Securities Act pursuant to a Shelf Registration Statement. If, after the filing of a Shelf Registration Statement, a holder of Registrable Securities requests registration under the Securities Act of additional Registrable Securities pursuant to such Shelf Registration, the Company shall amend such Shelf Registration Statement to cover such additional Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the registration of the Registrable Securities, the Company shall provide to the Purchaser customary indemnification in connection with such registration, including with respect to liabilities under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Reports Under Exchange Act.</u> As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, with a view to making available to the Purchaser the benefits of Rule 144 under the Securities Act and any other rule or regulation of the SEC that may at any time permit the Purchaser to sell securities of the Company to the public without registration or pursuant to a registration on Form F-3 or S-3, the Company shall: (a) make and keep available adequate current public information, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date of the registration statement filed by the Company for any ReIPO; (b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); (d) (i) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith upon request (A) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of Rule 144 under the Securities Act, the Securities Act, and the Exchange Act, or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 or S-3 (at any time after the Company so qualifies); and (B) such other information as may be reasonably requested in availing any Purchaser of any rule or regulation of the SEC that permits the selling of any such securities without registration, without qualification pursuant to a Canadian prospectus or pursuant to Form F-3 or S-3 (at any time after the Company so qualifies to use such form); and (ii) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith, but in any event within five days following the receipt of a lawful and contractually permitted request therefor, unlegended share certificates in connection with sales of Registrable Securities by the Purchaser pursuant to Rule 144 under the Securities Act, or furnish to the Company's transfer agent an opinion of counsel that such unlegended share certificates may be issued.

**ARTICLE V.**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Fees and Expenses.</u> Each party shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery, and performance of this Agreement; provided, however, that the Company shall pay the reasonable and documented fees and expense of the Purchaser's Canadian legal counsel in connection with the transactions contemplated by this Agreement, up to a maximum of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Entire Agreement.</u> The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Notices.</u> Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (EST) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (EST) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by United States nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Amendments; Waivers.</u> Any amendments hereto or waivers in respect hereof shall only be effective if made in writing and executed by the parties thereto. No waiver shall constitute a waiver of any other provision or act as a continuing waiver unless such is expressly provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Headings.</u> The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Successors and Assigns.</u> This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>No Third-Party Beneficiaries.</u> This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Governing Law.</u> The Agreement shall be by and interpreted in accordance with the laws of the Province of Ontario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Survival.</u> The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Execution.</u> This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf' signature page were an original thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Severability.</u> If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Saturdays, Sundays, Holidays, etc.</u> If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Construction.</u> The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and Common Shares in any Transaction Document shall be subject to adjustment for reverse and forward share splits, share dividends, share combinations and other similar transactions of the Common Shares that occur after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Currency.</u> All references to currency herein shall be deemed to refer to Canadian dollars.

*(Signature Pages Follow)*

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

**SOL STRATEGIES INC.**<br>By: *<u>(signed) "Leah Wald" &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>* <br> Name: Leah Wald<br> Title: Chief Executive Officer

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK <br>SIGNATURE PAGE FOR PURCHASER FOLLOWS]

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[PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Purchaser: <u>ParaFi Quantitative Strategies LP, by ParaFi Capital LP, its investment</u> <u>manager</u> 

*Signature of Authorized Signatory of Purchaser: <u>(signed) "Adrian Uberto"&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>*

<br> Name of Authorized Signatory: <u> Adrian Uberto</u>  

Title of Authorized Signatory: <u>Chief Operating Officer </u>  

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| | |
|:---|:---|
| Email Address of Authorized Signatory: | ***[Redacted - Contact Information]*** |

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Address for Notice to Purchaser:

c/o ParaFi Capital LP<br>***[Redacted - Contact Information]***<br> Email: ***[Redacted - Contact Information]<br>***

<br> Subscription Amount: $2,857,143.00 <br>Convertible Debenture Units: 2,857.143

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Schedule 3.1(e)

<u>Share Capital Summary</u>

The authorized share capital of the Company consists of an unlimited number of Common Shares, of which 150,169,520 Common Shares were issued and outstanding as of January 7, 2025. As of the date of this Agreement, the Company has 12,673,221 stock options and 563,669 restricted share units outstanding, each stock option and restricted share unit exercisable for or vesting into one Common Share.

The following persons hold the Common Shares listed below, which is a complete list of holders of 5.0% or more of the Common Shares as of the date of this Agreement:

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| | | |
|:---|:---|:---|
| **Name** | **Number of Common Shares Held** | **% of Common Shares**<br>**owned (undiluted)** |
| Antanas Guoga | 53923787 | 36.2 |
| *[Redacted - Commercially Sensitive Confidential Information]* | &nbsp;&nbsp;&nbsp;&nbsp;9200000 | &nbsp;&nbsp;&nbsp;&nbsp;6.2 |

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**EXHIBIT "A"**

**U.S. Accredited Investor Confirmation Certificate**

**(For U.S. Purchasers that are Institutional Accredited Investors)**

Reference made to the Securities Purchase Agreement by and among Sol Strategies Inc. (the "Company"), the undersigned (also referred to herein as the "Purchaser"), and certain other purchasers, for the purchase of certain Securities of Company (the "Agreement"). Terms not otherwise defined herein have the meanings ascribed to them in the Agreement.

The Purchaser understands and agrees that the Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any applicable securities laws of any state of the United States, and the Securities are being offered and sold by the Company to the Purchaser in reliance upon Rule 506(b) of Regulation D under the Securities Act ("Regulation D") and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States.

(A) Representations and Warranties. The undersigned represents, warrants and covenants (which representations, warranties and covenants shall survive the Closing) to the Company (and acknowledges that the Company is relying thereon) that the Purchaser is an Institutional Accredited Investor, and satisfies one or more of the categories indicated below (please initial on the appropriate line or lines), and is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Category 1. A bank, as defined in Section 3(a)(2) of the Securities Act, whether acting in its individual or fiduciary capacity; a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States *Securities Exchange Act of 1934;* an investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; an investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission under section 203(1) or (m) of the United States *Investment Advisers Act of 1940;* an insurance company as defined in Section 2(a)(13) of the Securities Act; an investment company registered under the United States *Investment Company Act of 1940;* a business development company as defined in Section 2(a)(48) of the United States *Investment Company Act of 1940;* a small business investment company licensed by the United States Small Business Administration under Section 301(c) or (d) of the United States *Small Business Investment Act of 1958;* a rural business investment company as defined in section 384A of the United States *Consolidated Farm and Rural Development Act;* a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of US$5,000,000; or an employee benefit plan within the meaning of the United States *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors as defined in Rule 501(a) of Regulation D ("Accredited Investor"); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Category 2. A private business development company as defined in Section 202(a)(22) of the United States *Investment Advisers Act of 1940;* or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Category 3. An organization described in Section 501(c)(3) of the United States *Internal Revenue Code,* a corporation, a Massachusetts or similar business trust, a partnership, or a limited liability company, not formed for the specific purpose of acquiring the Securities, with total assets in excess of US$5,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Category 7. A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Category 8. An entity in which all of the equity owners are Accredited Investors; or

*[If you checked Category 8, please indicate the name and category of Accredited Investor (by reference to the applicable subparagraph set forth in Rule 501(a) of Regulation D) of each equity owner:*

Name of Equity Owner <u>Category if Accredited Investor</u> <br>  

*It is permissible to look through various forms of equity ownership to natural persons in determining the Accredited Investor status of entities under this category. If those natural persons are themselves Accredited Investors, and if all other equity owners of the entity seeking Accredited Investor status are Accredited Investors, then this category will be available.]*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Category 9. An entity, of a type not listed in Categories 1, 2, 3, 7 or 8, not formed for the specific purpose of acquiring the Securities, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the United States *Investment Company Act of 1940);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Category 12. Any "family office," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940:* (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the Securities, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Category 13. A "family client," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940,* of a family office meeting the requirements set forth in Category 12 above and whose prospective investment in the Company is directed by such family office with the involvement of the Knowledgeable Family Office Administrator.

(B) Restrictions on Transferability of Securities. The undersigned realizes that the Securities and the Common Shares issuable upon exercise of the Warrants are not, and will not be, registered under the Securities Act, will be "restricted securities" as defined in Rule 144 thereunder, and the offer and sale of such Securities to it are being made in reliance upon Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States. The undersigned also understands that the Company has not agreed to register the Securities for distribution in accordance with the provisions of the Securities Act or any applicable state securities laws, that the Company has not agreed to comply with any exemption under the Securities Act or any such laws for the resale of the Securities, and that certain resale provisions of that regulation may not be available to the undersigned unless certain conditions are satisfied. Hence, the undersigned understands that, by virtue of the provisions of certain rules promulgated under the Securities Act and relating to "restricted securities," the Securities which the undersigned has subscribed for hereby may need to be held indefinitely, unless and until subsequently registered under the Securities Act and/or applicable state securities laws, or unless an exemption from registration is available, in which case the undersigned may still be limited with respect to the extent to which such Securities may be transferred, and that all certificates or statements evidencing such Securities shall bear, and be subject to the conditions of, the following legend(s), as applicable:

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**THE SECURITIES REPRESENTED HEREBY** ***[for Debentures, add:*** **AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF]** ***[for Warrants, add:*** **AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1)(I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

***[for Warrants add:*** **THE WARRANT REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."]**

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*provided,* that if, the Securities are being sold in compliance with the requirements of Rule 904 and in compliance with applicable local laws and regulations, and provided that the Securities were issued when the Company qualified as a "foreign issuer" (as defined in Rule 902(e) of Regulation S under the Securities Act), the legend may be removed by providing a customary declaration to the Company and to its transfer agent, in the form attached hereto as Appendix I or as may be reasonably required by the Company or the transfer agent;

*provided further,* if any of the Securities are being sold pursuant to Rule 144, if available, the legend shall be removed by delivering to the Company and the transfer agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent, to the effect that the legend is no longer required under applicable requirements of the Securities Act.

The undersigned agrees that by accepting the Securities it shall be representing and warranting that the representations and warranties above are true as at the Closing with the same force and effect as if they had been made by it at the Closing and that they shall survive the purchase by it of the Securities and shall continue in full force and effect notwithstanding any subsequent disposition by it of the Securities.

The foregoing representations and warranties are true and accurate as of the date of this U.S. Accredited Investor Confirmation Certificate and will be true and accurate as of the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants. If any such representations and warranties shall not be true and accurate prior to the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants, the Purchaser shall give immediate written notice of such fact to the Company and to the Placement Agent.

**DATED** as of January 8, 2025.

**PARAFI QUANTITATIVE STRATEGIES LP, by <br>PARAFI CAPITAL LP, its** ***investment** manager<br>*

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>*(signed) "Adrian Uberto"*</u> <br> Name: Adrian Uberto<br>Title: Chief Operating Officer

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**Appendix I to Exhibit "A" - U.S. Accredited Investor Confirmation Certificate** <br>**Declarations for Removal of Legend**

**To: TSX Trust Company, as Registrar and Transfer Agent for the Common Shares of Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of ___________________ (Securities), represented by the Issuer's certificate number ___________________, to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

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| | | |
|:---|:---|:---|
| By: |  | Date: |
|  | Signature |  |
| Name: |  |  |
|  | (please print) |  |

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**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer, __________________________ (the "Seller"), dated __________________________, with regard to our sale, for such Seller's account, of the __________________________ (Securities), represented by certificate number __________________________ of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

**Name of Firm**

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|:---|:---|
| By: |  |
|  | Authorized Officer |
| Date: |  |

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**EXHIBIT "B"<br>(see attached)**

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

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| | |
|:---|:---|
| **Certificate CD-2025-01** | **Principal Sum $27,500,000** |

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**Dated and effective January [•], 2025**

<u>**UNSECURED CONVERTIBLE DEBENTURE**</u>

**SOL STRATEGIES INC.**

**NOW THEREFORE** for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company hereby covenants, agrees and declares as follows:

**ARTICLE 1**<br> <u>**INTERPRETATION**</u>

1.1 <u>**Definitions.**</u> In this Debenture, including the preamble, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Attribution Parties**" means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - Take Over Bids and Issuer Bids

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**CDS**" means CDS Clearing and Depository Services Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Common Shares**" means the common shares of the Company as such shares are constituted on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Company**" means Sol Strategies Inc. and its legal successors and permitted assigns; "Conversion Date" has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Conversion Notic**e" has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Conversion Price**" means the price per Common Share at which all or a portion of the Principal Sum outstanding under this Debenture shall from time to time be convertible into Common Shares pursuant to a Holder Conversion, being a price of $2.50 per Common Share, being a ratio of 400 Common Shares per $1,000.00 of Principal Sum, subject to certain adjustments as provided herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Convertible Securities**" means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Company or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**CSE**" means Canadian Securities Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Current Market Price**" at any date means the VWAP of the Common Shares on the Principal Stock Exchange during the 20 consecutive Trading Days ending on the Trading Day immediately preceding such date, where the VWAP is determined by dividing the aggregate sale price of all Common Shares sold during that period by the total number of Common Shares sold during that period and, if no such prices are available, "Current Market Price" will be the Fair Market Value per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "**Debenture**" means this unsecured convertible debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Default Rate**" means the Interest Rate plus 5.0% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Directors**" means the persons who are the directors of the Company at the date of any event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Event of Default**" means any of the events specified in Section 6.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Excluded Taxes**" means, with respect to the Holder or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder (each, a "**Recipient**"), (a) Taxes imposed on or measured by a Recipient's net income, capital Taxes and franchise Taxes imposed on a Recipient (in lieu of net income Taxes), in each case, (i) by the jurisdiction (or any political subdivision thereof) under the laws of which such Recipient is organized or in which its principal office is located, or (ii) as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax, (b) any branch profits Taxes or any similar Tax imposed by any jurisdiction described in clause (a) in which such Recipient is located, (c) Taxes imposed under FATCA, (d) any withholding Taxes imposed on a payment by or on account of any obligation of the Company hereunder: (i) to a person with whom the Company does not deal at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of making such payment or (ii) in respect of a debt or other obligation to pay an amount to a person with whom the Company is not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of such payment, (e) any Taxes imposed on a Recipient by reason of: (i) such Recipient being a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, (ii) such Recipient not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) with a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, or (iii) the Company being a "specified entity" (as defined in subsection 18.4(1) of the *Income Tax Act* (Canada)) in respect of such Recipient, and **(f)** any Taxes resulting from the assignment or transfer of the Debenture by the Holder to any person (other than the Company in accordance with the terms of this Indenture);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**FATCA**" means Sections 1471 through 1474 of the IRC as of the date hereof (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 171(b)(1) of the IRC, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the IRC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Fair Market Value**" means the fair market value as determined by the Board, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Board and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Governmental Authority**" means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Holder**" has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Holder Conversion**" has the meaning ascribed to it in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Indebtedness**" has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Indemnified Taxes**" means Taxes other than Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Interest Rate**" means 2.5% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Issue Date**" means the date of this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**IRC**" means Internal Revenue Code of 1986 of the United States of America, as amended;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Material Adverse Effect**" means the effect resulting from any event, change, circumstance, fact or state of being which, singly or in the aggregate with other events, changes, circumstances, facts or states of being, could reasonably be expected to have a significant and adverse effect on (w) the business, affairs, capital, liabilities (absolute, accrued, contingent or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company and its subsidiaries, as a whole, (x) the legality, validity or enforceability of this Debenture; (y) the ability of the Company to exercise its rights or perform its obligations under this Debenture; or (z) the rights or remedies of the Holder under this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Maturity Date**" has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Other Taxes**" means any and all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, the Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**person**" means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Principal Stock Exchange**" means the CSE, and if the Common Shares are not listed on the CSE but are listed on another stock exchange or stock exchanges in Canada, references to the Principal Stock Exchange will be deemed to be references to such other stock exchange or, if more than one, to the one on which the greatest volume of Common Shares regularly trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Principal Sum**" has the meaning ascribed to it in Section 2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Tax**" or "Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any applicable Governmental Authority, and including any interest and penalties thereon or with respect to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Trading Day**" means a day on which the Principal Stock Exchange is open for the transaction of business and Common Shares have traded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**U.S. Holder**" means a Holder or a purchaser of Debentures who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the Securities Purchase Agreement, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Debentures for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**U.S. Person**" means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**United States**" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**VWAP**" means volume weighted average trading price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) this **"Debenture",** the "**Debenture**", "**herein**", "**hereby**", "**hereof'**, "**hereto**", "**hereunder**" and similar expressions mean or refer to this convertible unsecured Debenture and any debenture, deed or instrument supplemental or ancillary thereto and any schedules hereto or thereto and not to any particular article, section, subsection, clause, subclause or other portion hereof; the "**Debentures**" means this Debenture together with all others, being part of a series of like debentures except as to principal amount thereof.

1.2 <u>**Plurals and Gender.**</u> Whenever used in this Debenture, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" (and similar phrases) shall be deemed to mean "including, without limitation".

1.3 <u>**Numbering of Articles, etc.**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, sub-clause or schedule refers to the article, section, subsection, clause, sub-clause or schedule bearing that number or letter in this Debenture.

1.4 <u>**Day not a Business Day.**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be taken on the next Business Day following the day on which such action was to be taken. If the payment of any amount is deferred for any period, then such period shall be included for purposes of the computation of any interest payable hereunder.

1.5 <u>**Computation of Time Period.**</u> Except to the extent otherwise provided herein, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding".

1.6 <u>**Currency.**</u> All references to dollars or to "$" shall be references to Canadian dollars unless otherwise specified.

1.7 <u>**Securities Purchase Agreement.**</u> The Debentures have been issued pursuant to a securities purchase agreement between the Company and the Holder dated January 8, 2025 (the "**Securities Purchase Agreement**"), and are subject in all respects to the terms of the Securities Purchase Agreement. This Debenture incorporates the terms of the Securities Purchase Agreement and in the event of a conflict between the terms of this Debenture and the terms of the Securities Purchase Agreement, the terms of the Securities Purchase Agreement will govern.

1.8 <u>**Schedules.**</u> The Schedules annexed hereto will, for all purposes, form an integral part of this Debenture.

1.9 <u>**Statutory References.**</u> Any reference to a statute shall mean the statute in force as at the date of this Debenture, together with all rules and regulations promulgated thereunder (including any instrument of each of Canada's provincial and territorial securities regulators and securities regulatory authorities), as the same may be amended, re-enacted, consolidated or replaced from time to time, and any successor statute thereto, unless otherwise expressly provided.

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**ARTICLE 2**<br> <u>**PROMISE TO PAY**</u>

2.1 <u>**Indebtedness.**</u> The Company, for value received, and in consideration of the premises contained herein hereby acknowledges itself indebted and promises and covenants to pay to [•], the registered holder of the Debenture (the "**Holder**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate principal sum of $27,500,000 (the "**Principal Sum**") on January [•], 2030 (the "**Maturity Date**"), subject to the reduction of such Principal Sum from time to time upon the exercise of the conversion rights set out in Article 4 hereof, or on such earlier date as the Principal Sum may become due in accordance with the provisions hereof, at the principal office of the Company in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) interest on any monies owing by the Company to the Holder hereunder, as specifically calculated under Section 3.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all other monies, Additional Amounts, fees, costs, expenses, liabilities or other obligations, whether before or after maturity or default, which may be owing by the Company to the Holder pursuant to this Debenture or the Securities Purchase Agreement;

(collectively, the "**Indebtedness**").

2.2 <u>**Payment on Maturity.**</u> The Company shall pay in cash on the Maturity Date the outstanding Indebtedness owing to the Holder in full unless the Company has received from the Holder a Conversion Notice pursuant to Section 4.1 hereof. For greater certainty, the Company shall not be permitted to prepay any portion of the Principal prior to the Maturity Date other than with the prior written consent of the Holder.

2.3 <u>**Additional Amounts.**</u> Any payments made by or on behalf of the Company under or with respect to the Debenture will be made free and clear of and without withholding or deduction for or on account of any present or future Tax or other governmental charge, unless the Company or any other payor is required to withhold or deduct such Taxes by applicable law or by the interpretation or administration thereof by the relevant Governmental Authority. If the Company is required to withhold or deduct any amount for or on account of Taxes from any payment made under or with respect to the Debenture (including for greater certainty, the delivery of Common Shares or other property in connection with the exercise of a conversion right or otherwise), then, with respect to Indemnified Taxes (including Other Taxes), the Company will pay to the Holder such additional amounts (the "**Additional Amounts**") as may be necessary so that the net amount received (including Additional Amounts) by the Holder after such withholding or deduction (including any withholding or deduction required to be made in respect of any Additional Amounts) will not be less than the amount the Holder would have received (including for greater certainty, the full amount of any Common Shares or other property to which the Holder is entitled under the Debenture in connection with the exercise of a conversion right, payment on Maturity or otherwise) if such Indemnified Taxes (including Other Taxes) had not been withheld or deducted. The Company will make all withholdings or deductions required by applicable law and will remit the full amount withheld or deducted to the relevant Governmental Authority as and when required by applicable law and as soon as practicable thereafter will deliver to the Holder the original or certified copy of a receipt issued by such Governmental Authority evidencing such payment or other evidence of such payment reasonably satisfactory to the Holder. The Company shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. To the extent that withholdings or deductions apply to any payment to be made to the Holder, if the Holder is entitled to an exemption from or reduction in the rate of any withholding Tax with respect to any payments hereunder, the Holder shall deliver to the Company, at the time or times reasonably requested by the Company and at the time or times prescribed by applicable law, such properly completed and executed documentation reasonably requested by the Company or prescribed by applicable law as will permit such payments to be made without withholding (including FATCA withholding, if applicable) or at a reduced rate of withholding. In addition, the Holder, if requested by the Company, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company as will enable the Company to determine whether or not such Holder is subject to withholding, backup withholding or information reporting requirements, provided that no Holder shall be required to deliver any documentation pursuant to this Section 2.3 that such Holder is not legally able to deliver. Notwithstanding anything herein to the contrary, this Section 2.3 and the obligations thereunder will survive the repayment of this Debenture and the termination of this Debenture.

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2.4 <u>**Ownership Cap.**</u> Notwithstanding anything to the contrary contained herein, the Company shall not issue any Common Shares to the Holder, and any such issuance shall be null and void ab initio, to the extent that immediately prior to or following such issuance, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids,* in excess of 9.98% (as adjusted from time to time in accordance with the last sentence of this Section 2.4, the "**Ownership Cap**") of the Common Shares that would be issued and outstanding following such conversion. For purposes of calculating beneficial ownership for determining whether the Ownership Cap is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon conversion of this Debenture with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) conversion of the remaining, unconverted Debenture held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 2.4, beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of this Debenture, in determining the number of outstanding Common Shares, the Holder of this Debenture may rely on the number of outstanding Common Shares as reflected in (1) the Company's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the "**Reported Outstanding Share Number**"). For any reason at any time, upon the written or oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Company the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting a Conversion Notice for the relevant Debentures. If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 2.4, to exceed the Ownership Cap, the Holder must notify the Company of a reduced number of Debenture Shares to be purchased pursuant to such Conversion Notice (the number of shares by which such purchase is reduced, the "**Reduction Shares**") and (ii) as soon as reasonably practicable, the Company shall return to the Holder any Conversion Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Ownership Cap to any other percentage not in excess of 19.98% specified in such notice; provided that any increase in the Ownership Cap will not be effective until the 61st day after such notice is delivered to the Company and shall not negatively affect any partial conversion effected prior to such change.

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2.5 <u>**Non-Transferable.**</u> Subject to compliance with applicable law, including securities law, this Debenture may be assigned or transferred by the Holder provided that, notwithstanding Section 2.3, the Company shall not be liable for any additional costs that may be associated or incurred in connection with the assignment or transfer to any person (other than the Company in accordance with the terms of this Debenture) including without limitation, any withholding Taxes, without any prior consent from the Company, provided the Holder shall provide such information regarding the transaction and the transferee as the Company may reasonably request.

2.6 <u>**Voluntary Redemption.**</u> Subject to compliance with applicable law, including securities law, all, but not less than all, of the Debenture may be redeemed at the option of the Company, at any time and from time to time after the third anniversary of the Issue Date upon not less than 30 days prior written notice to the Holder at a redemption price equal to 112% of the principal amount of the Debenture to be redeemed, plus all accrued and unpaid interest thereon up to and including the date of redemption, all of which shall be payable in cash.

**ARTICLE 3** <br><u>**INTEREST**</u>

3.1 <u>**Calculation of Interest.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Principal Sum shall, subject to Section 3.1(b), bear interest both before and after maturity, default and judgment, from and including the Issue Date to the date of repayment in full, or conversion, at the Interest Rate per annum (based on a year of 360 days composed of twelve 30-day months), payable in cash or at the election of the Company (but subject to the Ownership Cap), in freely tradeable Common Shares at six month intervals. For greater certainty, interest payments (the "**Interest Payments**") will be due and payable on January [•] and July [•] of each year and on the Maturity Date (each, an "**Interest Payment Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 3.1(a), the Principal Sum outstanding will bear interest from and after the occurrence of an Event of Default which is continuing at the Default Rate. For so long as an Event of Default has occurred and is continuing, such interest shall be calculated and be payable in cash semi-annually in arrears on each Interest Payment Date, with interest on overdue interest at the same rate, and compounded semi-annually until paid; provided, however, any accrued and unpaid interest in respect of the period prior to the Event of Default shall remain calculated at the interest rate specified under Section 3.1(a) but, after the Event of Default, the interest on such overdue interest shall be calculated at the Default Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of the *Interest Act* (Canada), whenever any interest or fee under this Debenture is calculated using a rate based on a number of days less than a full year, such rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (i) the applicable rate, (ii) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (iii) divided by the number of days based on which such rate is calculated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) When interest is payable in Common Shares, the number of Common Shares to be issued shall be determined by the quotient obtained by dividing *(x)* by *(y),* where *(x)* is equal to the interest accrued on the Debenture from the Issue Date or the most recent Interest Payment Date, as applicable, to the applicable Interest Payment Date and *(y)* is equal to the Current Market Price, calculated up to the Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As promptly as possible after the Interest Payment Date, if interest has been paid by Common Shares, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified by the Holder for that number of Common Shares deliverable pursuant to the payment of interest on the applicable Interest Payment Date. Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share payable on any Interest Payment Date. Any fractions will be rounded down to the nearest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the payment of interest pursuant to this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such payments, if applicable.

**ARTICLE 4**<br> <u>**CONVERSION OF DEBENTURE**</u>

4.1 <u>**Conversion.**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the Ownership Cap, the Holder may, at its election, upon surrender (either in person, by mail (postage prepaid) or other means of delivery) of this Debenture along with a completed notice of conversion in the form attached hereto as Schedule "A" (the **"Conversion Notice"**) at the principal office of the Company in Toronto, Ontario at any time and from time to time following the Issue Date and prior to the close of business on the Maturity Date, convert all or portions of the outstanding Principal Sum from time to time (the **"Conversion Date"**) at the Conversion Price (**"Holder Conversion"**), in increments of $1,000.00, unless there is less than $1,000.00 of the Principal Sum then outstanding (in which case the balance of the outstanding Principal Sum shall be convertible). The delivery of the Conversion Notice duly executed by the Holder and the surrender of this Debenture shall be deemed to constitute a valid and enforceable contract between the Holder and the Company whereby (i) the Holder subscribes for the number of Common Shares which the Holder shall be entitled to receive upon such Holder Conversion, (ii) the Holder releases the Company from all liability thereon or from all liability with respect to the portion of the Principal Sum converted, as the case may be, and (iii) the Company agrees that the surrender of this Debenture for Holder Conversion constitutes full payment of the subscription price for the Common Shares issuable on such Holder Conversion. **To effect conversions hereunder, the Holder shall be required to physically surrender the Debenture to the Company.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As promptly as possible after receipt of the Conversion Notice and this Debenture, but subject to Section 4.5 hereof, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified in the Conversion Notice for that number of Common Shares deliverable upon the Holder Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The number of Conversion Shares issuable upon any conversion shall be determined by the quotient obtained by dividing *(x)* by (y) where *(x)* is equal to the aggregate amount of the outstanding Principal Sum to be converted as of the Conversion Date and (y) is the Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon completion of the Holder Conversion, the rights of the Holder to receive, in respect of the amount hereof so converted, the portion of the Principal Sum so converted shall cease and the Holder or the other person or persons in whose name or names any Common Shares shall be issuable upon such Holder Conversion shall be deemed to have become on the Conversion Date the holder or holders of record of such Common Shares represented thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that only a portion of the Principal Sum is subject to Holder Conversion, the Holder will be entitled to receive a replacement Debenture representing the Principal Sum not subject to Holder Conversion on the same terms and provisions contained herein.

4.2 <u>**Adjustment of Conversion Price.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and whenever the Company shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Conversion Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 4.2(a) or Section 4.2(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of any merger, amalgamation, arrangement or other form of business combination of the Company with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Article 4 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Article 4 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the conversion of any Debenture. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If and whenever the Company shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Company of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder converts any Debenture, in whole or in part); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 4.2(a) or Section 4.2(b) (any such events being herein called a "**Special Distribution**"), the Conversion Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) less than the Conversion Price applicable as of such record date, then the Conversion Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Conversion Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if the record date had not been fixed or the Conversion Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Company fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Conversion Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if such record date had not been fixed.

4.3 <u>**Conversion Rights Adjustment Rules.**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 4.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Company, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 4.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 4.2 results in a decrease of the Conversion Price taking effect immediately after the record date for a specific event, if any portion of this Debenture is converted after that record date and prior to completion of the event, the Company may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Conversion Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Conversion Price on the exercise date adjusted for completion of that event. The Company shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Company after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 4.2, which in the opinion of the Board, acting reasonably, would materially affect the conversion rights of the Holder, the Conversion Price shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Company in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Company affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 4.2 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 4.2 or this Section 4.3, no adjustment shall be made which would result in any increase in the Conversion Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Conversion Price will be made in respect of any event described in Section 4.2 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had converted the entire Principal Sum of this Debenture immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Conversion Price will be made pursuant to Section 4.2 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Debenture or Convertible Securities existing as of the issue date of this Debenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Company outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Conversion Price or the number of Common Shares issuable upon the conversion of this Debenture, such disputes shall be conclusively determined by the auditors of the Company or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 4.2 hereof and shall be binding upon the Company and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of this Debenture hereunder require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Company shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Conversion Price will be required by reason of the setting of such record date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Article 4 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by this Article 4, whether in its capacity as a shareholder (if applicable), as a Holder of this Debenture or otherwise.

4.4 <u>**No Fractional Common Shares.**</u> Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share upon the conversion of this Debenture. Any fractions will be rounded down to the nearest whole number.

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4.5 <u>**Certificate as to Adjustment.**</u> The Company shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Conversion Price as provided in Section 4.3, deliver a certificate of the Company to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

4.6 <u>**Notice of Certain Matter.**</u> The Company shall give notice to the Holder, in the manner provided in Article 12, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 4.3 that may give rise to an adjustment in the Conversion Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

4.7 <u>**Reservation of Common Shares.**</u> The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the conversion of this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such conversions.

4.8 <u>**Replacement of Debenture.**</u> If this Debenture becomes mutilated or lost, stolen or destroyed, the Company shall issue to the Holder a new Debenture upon surrender and cancellation of the mutilated Debenture, or, in the case of a lost, stolen or destroyed Debenture, upon the Holder furnishing to the Company such evidence of such loss, theft or destruction as will be satisfactory to the Company, acting reasonably, together with an indemnity in an amount and form satisfactory to the Company, acting reasonably. The Holder shall pay all reasonable out-of-pocket expenses incidental to the issuance of any such replacement Debenture.

**ARTICLE 5**

<u>**COVENANTS OF THE COMPANY**</u>

5.1 <u>**Payment Obligations.**</u> The Company shall duly and punctually pay all Indebtedness to the Holder promptly when owed by it hereunder.

5.2 <u>**Performance of Covenants.**</u> The Company shall promptly perform and satisfy all covenants and obligations to be performed by it under this Debenture at the times and places and in the manner provided for herein.

5.3 <u>**Maintain Corporate Existence.**</u> The Company shall maintain its corporate existence, and preserve its rights, powers, licenses and privileges which are necessary or material to the conduct of its business.

5.4 <u>**Maintain Books and Records.**</u> The Company shall keep accurate records and books of account in which complete entries will be made reflecting all financial transactions and prepare its financial statements in accordance with generally accepted accounting principles.

5.5 <u>**Payment of Taxes.**</u> The Company shall pay and discharge promptly all Taxes assessed or imposed upon it, its subsidiaries or their respective property as and when the same become due and payable, save and except where it contests in good faith the validity thereof by proper legal proceedings, and the Company shall file when due all Tax returns required to be filed by the Company and its subsidiaries.

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5.6 <u>**No Change to Constating Documents.**</u> The Company shall not amend its constating documents in any manner that would be prejudicial to the Holder.

5.7 <u>**Conduct of Business.**</u> The Company shall conduct its business in such a manner so as to: (i) comply in all material respects with all applicable law, (ii) so as to observe and perform in all respects all its obligations under leases, licences and agreements, and (iii) so as to preserve and protect its property and assets and the earnings, income and profits therefrom, except, in each case, where failure to do so would not reasonably be expected to have a Material Adverse Effect. The Corporation shall obtain and maintain, all licenses, permits, government approvals, franchises, authorizations and other rights necessary for the operation of its business except where failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.8 <u>**Notice of Event of Default.**</u> The Company shall promptly, and in any event within five (5) Business Days after a responsible officer of the Company becoming aware, give notice to the Holder of the existence of any Event of Default.

5.9 <u>**Share Capital.**</u> The Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cause the Common Shares issuable in connection with any Holder Conversion or Interest Payment to be duly issued and delivered in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ensure that all Common Shares which shall be issued in connection with any Holder Conversion be issued as fully paid and non-assessable.

5.10 <u>**Regulatory Approvals.**</u> The Company shall use commercially reasonable efforts to forthwith obtain such regulatory approvals as may be necessary for the Common Shares issued in connection with any Holder Conversion and any Interest Payment to be approved for listing on the CSE.

5.11 <u>**Exchange Listing.**</u> The Company shall use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE during the term of this Debenture.

5.12 <u>**Financial Reporting.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall furnish the Holder with the following documents, statements and reports (by email in pdf format):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Quarterly Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the first three fiscal quarters of each fiscal year of the Company, the unaudited balance sheet of the Company as of the close of such fiscal quarter and unaudited statements of income and expense and changes in financial position from the beginning of the then-current fiscal year to the close of such fiscal quarter, prepared in accordance with IFRS (subject to normal year-end audit adjustments) (including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the fiscal year of the Company, financial statements of the Company consisting of a balance sheet as of the end of such fiscal year and a statement of income and expense and changes in financial position for such fiscal year (including any footnotes thereto), prepared in accordance with IFRS (and including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company and certified by such independent chartered professional accountants of recognized international standing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery.</u> All reports and financial information required to be delivered under clauses (i) and (ii) shall be deemed to be delivered if the Company files or furnishes such report or information in accordance with Canadian securities laws with SEDAR+.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compliance Certificate.</u> All financial information delivered (or deemed delivered) under clauses (i) and (ii) shall be accompanied by a certificate of a senior officer of the Company certifying that no default or Event of Default has occurred and is continuing as of the date of such delivery or deemed delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Other Information.</u> The Holder from time to time may request any other reasonable information concerning the Company (or any Subsidiary of the Company), with such information to be provided as promptly as reasonably possible.

5.13 <u>**Use of Proceeds.**</u> The funds advanced under this Debenture shall be used by the Company for general working capital purposes.

5.14 <u>**Reporting Issuer.**</u> The Company shall use its commercially reasonable efforts to maintain its status as a "**reporting issuer**" in each applicable jurisdiction and the Company shall comply with all applicable securities legislation, provided that the covenant to remain a "reporting issuer" shall not apply to any merger, amalgamation, arrangement, take-over bid, going private transaction or other similar transaction involving the purchase or sale of all of the outstanding Common Shares.

5.15 <u>**Corporate Existence.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall not take part in any consolidation, plan of arrangement, amalgamation, merger, winding-up, dissolution, capital or corporate reorganization or similar proceeding or arrangement, unless: (i) the corporation formed by or surviving any such proceeding or arrangement is a corporation incorporated under the original jurisdiction of formation or the laws of Canada or any province thereof (such corporation being herein referred to as the "**Successor Entity**"); (ii) the Successor Entity is of comparable or better creditworthiness relative to the Company; (iii) the Successor Entity expressly assumes all the credit obligations as stated in this section pursuant to an instrument in form and substance satisfactory to the Holder, acting reasonably; (iv) no default or Event of Default is then existing or would result from the consummation of such proceeding or arrangement; (v) the provisions of Article 4, as applicable, have been complied with; and (vi) the Successor Entity delivers to the Holder an officer's certificate, in form and substance reasonably satisfactory to the Holder, acting reasonably, with respect to the instrument delivered pursuant to clause (iii) above.

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**ARTICLE 6** <br><u>**DEFAULT**</u>

6.1 <u>**Acceleration of Maturity on Default.**</u> Upon the happening of any one or more of the following events (herein referred to as "**Events of Default**") namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Company does not pay when due the Indebtedness or other amount payable by it under this Debenture at the place and in the currency in which such amount is expressed to be payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company fails to issue the Common Shares in respect of any duly completed Holder Conversion, if such failure continues for a period of ten (10) Business Days from the Conversion Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Company fails to observe or defaults under any covenant or agreement of the Company set out in this Debenture or the Securities Purchase Agreement or any representation or warranty made by the Company in the Securities Purchase Agreement proves to be untrue in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if all or substantially all of the assets of the Company used to carry on its business are lost or destroyed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any event occurs or series of events occur which individually or together has a Material Adverse Effect;

if the Company makes a general assignment for the benefit of creditors; or any proceeding is instituted by it seeking relief as debtor, or to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or for an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver or trustee, or other similar official for it or for any substantial part of its properties or assets; or any corporate or partnership action is taken to authorize any of the actions referred to in this Subsection 6.1(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if any proceedings are instituted against the Company seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver, trustee or other similar official for it or for any substantial part of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any proceedings with respect to the Company are commenced under the *Companies' Creditors Arrangement Act* (Canada); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company takes any corporate proceedings for its dissolution, liquidation or if the corporate existence of the Company shall be terminated by expiration, forfeiture or otherwise, or if the Company ceases or threatens to cease, to carry on all or a substantial part of its business;

then in each and every such event, the amount of the Indebtedness shall forthwith become immediately due and payable to the Holder, anything herein contained to the contrary notwithstanding, and the Company shall forthwith pay to the Holder the amount of the Indebtedness and all other monies payable under the provisions hereof from the date of the said Event of Default until payment is received by the Holder, and any monies so received by the Holder shall be applied first to amounts other than interest and the Principal Sum, second to interest, and third to the Principal Sum.

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18 <br>

6.2 <u>**Waiver of Company's Rights.**</u> To the full extent that it may lawfully do so, the Company for itself and its successors and assigns hereby waives and disclaims any benefit of, and shall not have or assert any right under, any statute or rule of law pertaining to the marshalling of assets, discussion, division or other matter whatever, to defeat, reduce or affect the rights of the Holder under the terms of this Debenture. Without limiting the generality of the foregoing, the Company waives every defence based upon any or all indulgences that may be granted by the Holder. Presentment, notice of dishonour, protest and notice of protest hereof are hereby waived.

**ARTICLE 7**

<u>**U.S. RESTRICTIONS**</u>

7.1 <u>**U.S. Registration.**</u> This Debenture and the Common Shares issuable upon conversion hereof have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States. This Debenture and the underlying Common Shares may only be offered and sold to a U.S. Person or a person in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

7.2 <u>**U.S. Restrictions on Transfer.**</u> This Debenture and the Common Shares issuable upon conversion hereof may only be transferred by the U.S. Holder pursuant to the restrictions on transfer described in Exhibit "A" to the Securities Purchase Agreement, as applicable to the U.S. Holder.

**ARTICLE 8** <br><u>**WAIVER**</u>

8.1 <u>**Waiver.**</u> The Holder may waive any breach of any of the provisions contained in this Debenture or any default by the Company in the observance or performance of any covenant, condition or obligation required to be observed or performed by it under the terms of this Debenture. No waiver, consent, act or omission by the Holder shall extend to or be taken in any manner whatsoever to affect any other or subsequent breach or default or the rights resulting therefrom and no waiver or consent by the Holder shall bind the Holder unless it is in writing. The inspection or approval by the Holder of any document or matter or thing done by the Company shall not be deemed to be a warranty or holding out of the adequacy, effectiveness, validity or binding effect of such document, matter or thing or a waiver of the Company's obligations.

**ARTICLE 9**

<u>**OTHER RIGHTS OF THE HOLDER**</u>

9.1 <u>**Rights of Set-Off.**</u> The Company acknowledges and agrees that the Indebtedness and the other obligations hereunder shall be paid, satisfied and discharged to the Holder without regard to such dealings as may from time to time occur as between any one or more of the Holder, the Company and any other person and without regard to such equities or rights of set-off or counterclaim which may from time to time exist between any one or more of the Holder, the Company or any other person, and that the Indebtedness and other obligations hereof shall be paid without regard to any equities between the Company and the Holder hereof or any set-off or cross-claims and the receipt of the Holder for the payment of the Indebtedness will be a good discharge to the Company in respect thereof.

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9.2 **<u>No Merger.</u>** Neither the taking of any judgement nor the exercise of any rights hereunder shall operate to extinguish the obligation of the Company to pay the monies owing under this Debenture and shall not operate as a merger of any covenant in this Debenture, and the acceptance of any payment shall not constitute or create a novation, and the taking of a judgement or judgements under a covenant herein contained shall not operate as a merger of those covenants and affect the Holder's right to interest under this Debenture.

**ARTICLE 10**

<u>**ADMINISTRATIVE PROVISIONS**</u>

10.1 <u>**Registered Holders.**</u> The person in whose name this Debenture shall be registered shall be deemed and regarded as the owner and holder hereof for all purposes, and the payment to and/or receipt of any Holder for any Indebtedness shall be a good discharge of the Company for the same, and the Company shall not be bound to enter in the register notice of any trust or to enquire into the title of any Holder or to recognize any trust or equity affecting the title hereof save as ordered by some court of competent jurisdiction or as required by statute.

**ARTICLE 11**

<u>**MISCELLANEOUS**</u>

11.1 <u>**Consent.**</u> Where a provision of this Debenture requires an approval or consent by a party to this Debenture and written notification of such approval or consent is not delivered within the applicable time in accordance with this Debenture, then the party whose consent or approval is required shall be conclusively deemed to have withheld its approval or consent.

11.2 <u>**Holder May Remedy Default.**</u> If the Company fails to do anything hereby required to be done by it, the Holder may, but will not be obliged to, do such thing and all reasonable sums thereby expended by the Holder shall be payable forthwith by the Company, but no such performance by the Holder shall be deemed to relieve the Company from any default hereunder.

11.3 <u>**Adjustment of Interest.**</u> Notwithstanding any provision to the contrary contained in this Debenture, in no event will the aggregate "interest" (as defined in Section 347 of the *Criminal Code* (Canada)) payable under this Debenture exceed the effective annual rate of interest on the "credit advanced" (as defined in that Section) under this Debenture lawfully permitted under that Section and, if any payment, collection or demand pursuant to this Debenture in respect of "interest" (as defined in that Section) is determined to be contrary to the provision of that Section, such payment, collection or demand will be deemed to have been made by mutual mistake of the Company and the Holder and the amount of such payment or collection will be refunded to the Company; for purposes of this Debenture the effective annual rate of interest will be determined in accordance with generally accepted actuarial practices and principles over the term of this Debenture on the basis of annual compounding of the lawfully permitted rate of interest and, in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Holder shall be conclusive for the purposes of such determination, in the absence of evidence to the contrary.

11.4 <u>**Indemnification.**</u> The Company agrees to indemnify the Holder from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits and reasonable costs, expenses or disbursements (except by reason of the fraud, wilful misconduct or gross negligence of the Holder or any of its employees or a material breach by the Holder of any of its covenants contained herein) which may be imposed on, incurred by, or asserted against the Holder in connection with this Debenture and arising by reason of a breach of any representation and warranty of the Company contained in this Debenture, any action (including any action referred to herein) or inaction or omission to do any act legally required of the Company under this Debenture. In addition to the foregoing, the Company agrees to reimburse the Holder for all reasonable and documented legal or other expense incurred in connection with investigating, defending or participating in any action or other proceeding relating to any such losses or liabilities. Notwithstanding anything to the contrary contained herein, nothing in this provision shall be construed to limit or reduce the Company's obligations under Section 6.1.

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20 <br>

11.5 **<u>Remedies.</u>** The parties acknowledge and agree that an award of money damages may be inadequate for any breach of this Debenture and any such breach could cause the non- breaching party irreparable harm. Accordingly, the parties agree that, in the event of any breach or threatened breach of this Debenture by one of the parties, the non-breaching party will also be entitled, without the requirement of posting a bond or other security, to seek equitable relief, including injunctive relief and specific performance. Such remedies will not be the exclusive remedies for any breach of this Debenture but will be in addition to all other remedies available at law or equity to each of the parties.

11.6 <u>**Expenses.**</u> Except as otherwise expressly provided herein or in the Securities Purchase Agreement, each party to this Debenture shall pay its respective legal, accounting and other professional advisory fees, costs and expenses incurred in connection with the negotiation, preparation or execution of this Debenture and all documents and instruments executed or delivered pursuant to this Debenture.

11.7 <u>**Public Notice.**</u> All public notices to third parties and all other publicity concerning the matters contemplated by this Debenture shall be jointly planned and coordinated by the Company and the Holder, each acting reasonably, and neither the Company nor the Holder shall act unilaterally in this regard without the prior written approval of the other party, except to the extent that the party making such notice is required to do so by applicable laws in circumstances where prior consultation with the other party is not practicable, provided concurrent notice to the other party is provided. Notwithstanding the foregoing, the Company may comply with its obligations under applicable securities laws without such consultation or approval where required.

11.8 <u>**Amendment.**</u> This Debenture may not be amended other than as agreed upon in writing between the Company and the Holder.

11.9 <u>**Assignment.**</u> Except in compliance with Section 5.15, the Company may not assign any rights and benefits or obligations under this Debenture without the prior written consent of the Holder.

11.10 <u>**Governing Law.**</u> This Debenture shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario. The Company hereby irrevocably attorns to the jurisdiction of the Courts of the Province of Ontario.

11.11 <u>**Severability.**</u> If any provision in this Debenture is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Debenture shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Debenture so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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11.12 <u>**Headings.**</u> The headings of the articles, sections, subsections and clauses of this Debenture have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Debenture.

11.13 <u>**Binding Effect.**</u> This Debenture and all of its provisions shall enure to the benefit of the Holder, its successors and assigns, and shall be binding upon the Company and its successors and permitted assigns. The expression the "Holder" as used herein shall include the Holder's assigns whether immediate or derivative.

11.14 <u>**Confidentiality.**</u> The Company shall not, and shall use its reasonable best efforts to ensure that its representatives will not, disclose the identity of the Holder to any third party, or otherwise identify the Holder as an investor in the Company, including in any public disclosure documents, regulatory filings, public statements, press releases and investor presentations, except (i) with the consent of the Holder, (ii) to the extent required to ensure compliance with applicable laws, including the filing of a Form 45-106F1 in connection with the issuance of the Debenture to the Holder, or (iii) to the Company's representatives on an as-needed basis; provided that such representatives are subject to confidentiality obligations at least as stringent as those applicable to the Company herein. The Company agrees to advise each of its representatives as to the confidential nature of the investment by the Holder and the holding by the Holder of securities of the Company. This covenant shall survive until the Holder no longer, directly or indirectly, owns the Debenture and/or the Common Shares.

**ARTICLE 12** <br><u>**NOTICE**</u> 

12.1 <u>**Notices.**</u> Any notice required or permitted to be given under any of this Debenture or any tender or delivery of documents may be given by personal delivery or by facsimile or electronic transmission to the parties at the following addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Holder at:

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| |
|:---|
| Address: |
| Attention: |
| Email: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Company at:

Sol Strategies Inc.<br>217 Queen Street West, Suite 401<br>Toronto, ON M5V 0R2

Attention: Leah Wald

Email: ***[Redacted - Contact Information]***

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Any notice or delivery shall be given as herein provided or to such other addresses or email or telecopier number or in care of such other person as a party may from time to time advise by notice in writing as aforesaid. The date of receipt of such notice or delivery shall be the date of actual delivery to the address specified if delivered or the date of actual transmission to the email or telecopier number if emailed or telecopied, unless such date is not a Business Day, in which event the date of receipt shall be the next Business Day immediately following the date of such delivery or transmission.

*[Remainder of page intentionally left blank]*

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**IN WITNESS WHEREOF** the Company has duly executed this Debenture as of the date first above by its duly authorized officer.

Per: __________________________________

Name: Leah Wald

Title: Chief Executive Officer

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**SCHEDULE "A"**

**CONVERSION NOTICE**

**TO: Sol Strategies Inc. (the "Company")**

The undersigned registered holder of the convertible debenture dated January [•], 2025 (the "**Debenture**"), given by the Company, hereby subscribes for Common Shares, on the terms specified in the Debenture, to the extent of $_____________of Principal Sum. The Debenture is hereby tendered to the Company and will, upon due issuance of the Common Shares aforesaid and, if required, any replacement Debenture for any portion of the Debenture not converted, be null and void.

The Common Shares subscribed for will be issued as set forth below and will be mailed or delivered to the address set forth below.

If the Debentures are being converted by, or for the account or benefit of a U.S. Person or a person in the United States, the undersigned represents, warrants and certifies as follows (one only) of the following must be checked):

❏ A. The undersigned has not been solicited to convert the Debentures by any person, or if the undersigned has been solicited to convert the Debentures, the undersigned has confirmed that no commission or remuneration has been or will be paid or given, directly or indirectly, for soliciting such conversion, and the undersigned acknowledges that the Company is relying on the registration exemption provided by section 3(a)(9) of the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), to issue the Common Shares; OR

❏ B. The undersigned has delivered to the Company and the Company an opinion of counsel reasonably satisfactory to the Company to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available. (Note: If this box is to be checked, holders are encouraged to consult with the Company in advance to determine that the legal opinion tendered in connection with conversion will be satisfactory in form and substance to the Company.)

**❏ If the undersigned has checked Box A or B, and the undersigned has determined with the benefit of legal advice that the restrictions on transfer contained in the Debenture and the U.S. Legend are not required to be imposed on the beneficial interest of the undersigned in order to maintain compliance with the U.S. Securities Act, the undersigned has caused to be delivered to the Company, at the request of the Company, an opinion of counsel of recognised standing, in form and substance reasonably satisfactory to the Company, to the foregoing effect.**

Capitalized terms not defined in this Conversion Notice have the meanings ascribed to them in the Debenture.

*[Remainder of this page intentionally left blank]*

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DATED this________day of_____________, 20_.

**If subscriber is an individual:**

    <br> Witness Signature of Subscriber

Print below the name and address in full of the person in whose name the Common Shares subscribed for are to be issued. If the Common Shares subscribed for are to be issued to more than one person, similar information must be provided for each person, as well as the number of Common Shares to be issued to each. (If any of the Common Shares are to be issued to a person or persons other than the Holder of the Debenture, the Holder must pay to the Company all requisite taxes.)

Name   <br> Address   <br>  

Social Insurance Number   Postal Code  

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**EXHIBIT "C" <br>(see attached)**

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON WITHIN THE UNITED STATES UNLESS THE WARRANTS AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. AS USED HEREIN, THE TERMS 'UNITED STATES' AND 'U.S. PERSON' HAVE THE MEANINGS ASSIGNED TO THEM IN REGULATIONS UNDER THE U.S. SECURITIES ACT.**

**THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE ON OR BEFORE 5:00 P.M. (TORONTO TIME) ON JANUARY [•], 2030, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.**

**WARRANTS TO PURCHASE COMMON SHARES OF** <br>**SOL STRATEGIES INC.**

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| | |
|:---|:---|
| **Number - W2025-001** | **Number of warrants represented by this** |
|  | **certificate: 11,000,000** |

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**THIS CERTIFIES THAT,** for value received, [•] (the "**Holder**"), being the registered holder **of** such number of common share purchase warrants (collectively, the "**Warrants**") as set out above, is entitled, at any time prior to the Expiry Time (as defined below) to subscribe for and purchase, in respect of each Warrant held, one fully-paid and non-assessable common share ("**Common Share**") of Sol Strategies Inc. (the "**Corporation**") at a price of $2.50 (such amount hereinafter, the "**Exercise Price**"), subject to adjustment as set out herein, by surrendering to the Corporation at its principal office, 217 Queen St W #401, Toronto, ON M5V 0R2, this Warrant certificate (the "**Warrant Certificate**"), with a completed and executed subscription form in the form attached hereto, and payment in full for the Common Shares being purchased, which payment shall be made by certified cheque or such other means acceptable to the Corporation in same day freely transferable funds at par in Toronto.

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The Corporation shall treat the Holder as the absolute owner of these Warrants for all purposes and the Corporation shall not be affected by any notice or knowledge to the contrary. The Holder shall be entitled to the rights evidenced by this Warrant Certificate free from all equities and rights of set-off or counterclaim between the Corporation and the original or any intermediate holder and all persons may act accordingly and the receipt by the Holder of the Common Shares issuable upon exercise hereof shall be a good discharge to the Corporation and the Corporation shall not be bound to inquire into the title of any such Holder.

1. <u>**Definitions:**</u> In this Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Attribution Parties**" means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - *Take Over Bids and Issuer Bids;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Business Day**" means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Common Shares**" means the common shares in the capital of the Corporation as such shares are constituted on the date hereof, as the same may be reorganized, reclassified or otherwise changed pursuant to any of the events set out in Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Convertible Securities**" means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Corporation or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Corporation**" means Sol Strategies Inc., a company incorporated under the laws of the Province of Ontario and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Current Market Price**" at any date, means the volume weighted average trading price per Common Share at which the Common Shares have traded on the Canadian Securities Exchange, or, if the Common Shares in respect of which a determination of current market price is being made are not listed thereon, on such stock exchange or market on which such shares are listed as may be selected for such purposes by the Directors, or, if the Common Shares are not listed on any stock exchange or market, then on the over-the-counter market, for any 20 consecutive Trading Days selected by the Corporation on the Trading Day before such date, or if such Common Shares are not listed on any exchange or market or quoted on any over-the-counter market, the current market price shall be as determined by such firm of independent chartered accountants as may be selected by the Directors; and the weighted average price per share shall be determined by dividing the aggregate sale price of all Common Shares traded on such stock exchange or market, as the case may be, during such 20 consecutive Trading Days by the total number of Common Shares so traded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Directors**" means the members of the board of directors of the Corporation at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Exchange Act**" means the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Exercise Price**" means $2.50 per Common Share, subject to adjustment in accordance with Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Expiry Day**" means January [•], 2030;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Expiry Time**" means 5:00 p.m., Toronto time, on the Expiry Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "**Fair Market Value**" means the fair market value as determined by the Directors, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Directors and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Holder**" means the holder set forth on the first page hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**person**" means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof or any other entity whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" with respect to a stock exchange, market or over-the-counter market means a day on which such stock exchange or over-the-counter market is open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**U.S. Holder**" means a Holder who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the agreement to purchase the Warrants, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Warrants for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**U.S. Person**" means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**United States**" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Warrants**" shall have the meaning set forth on the face page hereof.

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2. <u>**Expiry Time:**</u> At the Expiry Time, all rights under the Warrants evidenced hereby, in respect of which the right of subscription and purchase herein provided for shall not theretofore have been exercised, shall expire and be of no further force and effect.

3. <u>**Exercise Procedure:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Holder may exercise the right to subscribe for and purchase the number of Common Shares herein provided for by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate, with the subscription form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation, together with a certified cheque (or such other method of payment acceptable to the Corporation) payable to or to the order of the Corporation in an amount equal to the aggregate Exercise Price in respect of the Warrants so exercised. Any Warrant Certificate so surrendered shall be deemed to be surrendered only upon delivery thereof to the Corporation at its principal office set forth herein (or to such other address as the Corporation may notify the Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon such delivery as aforesaid, the Corporation shall cause to be issued to the Holder hereof the Common Shares subscribed for not exceeding those which such Holder is entitled to purchase pursuant to this Warrant Certificate and the Holder hereof shall become a shareholder of the Corporation in respect of the Common Shares subscribed for with effect from the date of such delivery and shall be entitled to delivery of a certificate evidencing the Common Shares and the Corporation shall cause such certificate or certificates to be mailed to the Holder hereof at the address or addresses specified in such subscription as soon as practicable, and in any event within five Business Days of such delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Warrant and the Common Shares to be issued upon its exercise have not been registered under the U.S. Securities Act or the securities laws of any state of the United States. This Warrant may not be exercised in the United States or by or on behalf of any U.S. Person or person in the United States, directly or indirectly, unless (i) the common shares are registered under the U.S. Securities Act and the applicable laws of any such state, or (ii) an exemption from such registration requirements is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any Warrants are exercised before May [•], 2025, the certificate(s) representing the Common Shares issued upon such exercise shall bear the following legend:

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY [•], 2025."**

provided that, if at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary or advisable under any such securities laws, or the holder of any such legended certificate, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to the Corporation) to the effect that such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange for a certificate which does not bear such legend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Issuance and delivery of Common Shares upon exercise of this Warrant Certificate shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary contained herein, the Corporation shall not effect the exercise of any Warrants, and the Holder shall not have the right to exercise any Warrants, and any such exercise shall be null and void ab initio and treated as if the exercise had not been made, to the extent that immediately prior to or following such exercise, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 *- Take Over Bids and Issuer Bids,* in excess of 9.98% (the "**Maximum Percentage**") of the Common Shares that would be issued and outstanding following such exercise. For purposes of calculating beneficial ownership for determining whether the Maximum Percentage is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon exercise of the relevant Warrant with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) exercise of the remaining, unexercised Warrant held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 3(e), beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of these Warrants, in determining the number of outstanding Common Shares, a Holder of the Warrants may rely on the number of outstanding Common Shares as reflected in (1) the Corporation's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the Commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the "**Reported Outstanding Share Number**"). For any reason at any time, upon the written or oral request of the Holder, the Corporation shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Corporation the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting an exercise notice for the relevant Warrants. If the Corporation receives an exercise notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such exercise notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 3(e), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the "**Reduction Shares**") and (ii) as soon as reasonably practicable, the Corporation shall return to the Holder any Exercise Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including these Warrants, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Corporation, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 19.98% specified in such notice; provided that (i) any increase in the Maximum Percentage will not be effective until the 61st day after such notice is delivered to the Corporation and shall not negatively affect any partial exercise effected prior to such change.

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4. <u>**Partial Exercise:**</u> The Holder may subscribe for and purchase a number of Common Shares less than the number the Holder is entitled to purchase pursuant to this Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the Holder shall in addition be entitled to receive, without charge, a new Warrant Certificate in respect of the balance of the Common Shares which the Holder was entitled to subscribe for pursuant to this Warrant Certificate and which were then not purchased.

5. <u>**No Fractional Shares:**</u> Notwithstanding any adjustments provided for in Section 11 hereof or otherwise, the Corporation shall not be required upon the exercise of any Warrants to issue fractional Common Shares in satisfaction of its obligations hereunder and, in any such case, the number of Common Shares issuable upon the exercise of any Warrants shall be rounded down to the nearest whole number. To the extent that the Holder would be entitled to purchase a fraction of a Common Share, such right may be exercised in respect of such fraction only in combination with other rights which in the aggregate entitle the Holder to purchase a whole number of Common Shares.

6. <u>**Exchange of Warrant Certificates:**</u> This Warrant Certificate may be exchanged for Warrant Certificates representing in the aggregate the same number of Warrants and entitling the Holder thereof to subscribe for and purchase an equal aggregate number of Common Shares at the same Exercise Price and on the same terms as this Warrant Certificate (with or without legends as may be appropriate).

7. <u>**Transfer of Warrants:**</u> Subject to applicable law, the Holder may transfer the within Warrants by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate with the transfer form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation. If less than all Warrants represented by this Warrant Certificate are transferred, the Holder shall be entitled to receive a new Warrant Certificate in respect of the number of Warrants which have not been transferred. Notwithstanding the foregoing, the Corporation may refuse to permit the transfer of any Warrant if such transfer would constitute a violation of the securities laws of any jurisdiction. Subject to the foregoing, the Corporation shall issue and mail as soon as practicable, and in any event within five Business Days of such delivery, a new Warrant Certificate (with or without legends as may be appropriate) registered in the name of the transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer as directed.

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8. <u>**Not a Shareholder:**</u> Nothing in this Warrant Certificate or in the holding of a Warrant evidenced hereby shall be construed as conferring upon the Holder any right or interest whatsoever as a shareholder of the Corporation.

9. <u>**No Obligation to Purchase:**</u> Nothing herein contained or done pursuant hereto shall obligate the Holder to subscribe for or the Corporation to issue any shares except those shares in respect of which the Holder shall have exercised its right to purchase hereunder in the manner provided herein.

10. <u>**Covenants:**</u> 

The Corporation covenants and agrees that so long as any Warrants evidenced hereby remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall reserve and there shall remain unissued out of its authorized capital a sufficient number of Common Shares to satisfy the right of purchase herein provided for, it will cause the Common Shares subscribed for and purchased in the manner herein provided to be issued and delivered as directed and such Common Shares shall be issued as fully paid and non-assessable Common Shares and free from all taxes, liens and charges with respect to the issue thereof and the holders thereof shall not be liable to the Corporation or to its creditors in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation will at all times while any Warrants are outstanding preserve and maintain its corporate existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice, will keep or cause to be kept proper books of account in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation will at all times while any Warrants are outstanding use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE or such other recognized exchange on which the Common Shares may be listed at the time of exercise of the Warrants, subject to the exception provided in Section 13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Corporation shall use commercially reasonable efforts to maintain its status as a reporting issuer not in default in the Provinces of Canada in which it was a reporting issuer on the date of issuance of this Warrant Certificate.

11. <u>**Adjustments:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of the holder of the Warrants evidenced hereby, including the number of Common Shares issuable upon the exercise thereof, will be adjusted from time to time in the events and in the manner provided in, and in accordance with the provisions of, this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and whenever the Corporation shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Exercise Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 11(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of any merger, amalgamation, arrangement or other form of business combination of the Corporation with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Section 11 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Section 11 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of any Warrants. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If and whenever the Corporation shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Corporation of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder exercises any Warrants); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 11(b) or Section 11(c) (any such events being herein called a "**Special Distribution**"), the Exercise Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Corporation sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) which is less than 95% of the Current Market Price as of such record date, then the Exercise Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Exercise Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if the record date had not been fixed or the Exercise Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Corporation fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Simultaneously with any adjustment to the Exercise Price pursuant to Section **11,** the number of Common Shares purchasable upon the exercise of each Warrant (at the adjusted Exercise Price) shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the applicable Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the applicable Exercise Price resulting from such adjustment.

12. <u>**Rules Regarding Calculation of Adjustment of Exercise Price:**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 11:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Corporation, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 11 results in a decrease of the Exercise Price taking effect immediately after the record date for a specific event, if any Warrants represented by this Warrant Certificate is exercised after that record date and prior to completion of the event, the Corporation may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Exercise Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Exercise Price on the exercise date adjusted for completion of that event. The Corporation shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Corporation after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 11, which in the opinion of the Directors, acting reasonably, would materially affect the conversion rights of the Holder, the Exercise Price and number of Common Shares issuable upon exercise of the Warrants shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Corporation in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the Directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Corporation affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 11 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 11 or this Section 12, no adjustment shall be made which would result in any increase in the Exercise Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Exercise Price will be made in respect of any event described in Section 11 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised all Warrants represented by this Warrant Certificate immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Exercise Price will be made pursuant to Section 11 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Warrant Certificate or Convertible Securities existing as of the issue date of this Warrant Certificate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Corporation outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of Common Shares issuable upon the exercise of the Warrants represented by this Warrant Certificate, such disputes shall be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 11 hereof and shall be binding upon the Corporation and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of the exercise of the Warrants represented by this Warrant Certificate require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Corporation shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Corporation sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price will be required by reason of the setting of such record date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Section 12 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by Section 11, whether in its capacity as a shareholder (if applicable), as a Holder or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Corporation shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Exercise Price as provided in Section 11 or 12, deliver a certificate of the Corporation to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Corporation shall give notice to the Holder, in the manner provided in Section 23, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 11 that may give rise to an adjustment in the Exercise Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

13. <u>**Consolidation and Amalgamation:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not enter into any transaction whereby all or substantially all or its undertaking, property and assets would become the property of any other corporation (herein called a "**successor corporation**") whether by way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the consummation of such transaction the Corporation and the successor corporation shall have executed such instruments and done such things as the Corporation, acting reasonably, considers necessary or advisable to establish that upon the consummation of such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the successor corporation will have assumed all the covenants and obligations of the Corporation under this Warrant Certificate, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Warrants and the terms set forth in this Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against the successor corporation, to all the rights of the Holder under this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the conditions of Section 13(a) shall have been duly observed and performed the successor corporation shall possess, and from time to time may exercise, each and every right and power of the Corporation under the Warrants in the name of the Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any Director or officer of the Corporation may be done and performed with like force and effect by the like Directors or officers of the successor corporation.

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14. <u>**Representation and Warranty:**</u> The Corporation hereby represents and warrants with and to the Holder that the Corporation is duly authorized and has the corporate and lawful power and authority to create and issue the Warrants and the Common Shares issuable upon the exercise hereof and perform its obligations hereunder and that this Warrant Certificate represents a valid, legal and binding obligation of the Corporation enforceable in accordance with its terms.

15. <u>**Lost Certificate:**</u> If the Warrant Certificate evidencing the Warrants issued hereby becomes stolen, lost, mutilated or destroyed the Corporation may, on such terms as it may in its discretion, acting reasonably, impose, issue and countersign a new Warrant Certificate of like denomination, tenor and date as the Warrant Certificate so stolen, lost mutilated or destroyed.

16. <u>**Governing Law:**</u> This Warrant Certificate shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws, rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario.

17. <u>**Severability:**</u> If any provision in this Warrant Certificate is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Warrant Certificate shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Warrant Certificate so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

18. <u>**Headings:**</u> The headings of the articles, sections, subsections and clauses of this Warrant Certificate have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Warrant Certificate.

19. <u>**Numbering of Articles, etc.:**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, subclause or schedule refers to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Warrant Certificate.

20. <u>**Gender:**</u> Whenever used in this Warrant Certificate, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" shall be deemed to mean "including, without limitation".

21. <u>**Day not a Business Day:**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be required to be taken on or before the requisite time on the next succeeding day that is a Business Day.

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22. <u>**Binding Effect:**</u> This Warrant Certificate and all of its provisions shall enure to the benefit of the Holder, its heirs, executors, administrators, successors, assigns and legal personal representatives and shall be binding upon the Corporation and its successors.

23. <u>**Notice:**</u> Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed to be validly given if the notice is sent by fax, email, prepaid same day courier or first class mail addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Holder at the latest address of the Holder as recorded on the books of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Corporation at:

Sol Strategies Inc.

217 Queen St W #401<br>Toronto, ON M5V 0R2

Attention: Chief Executive Officer

Email: ***[Redacted - Contact Information]***

Any notice given as aforesaid shall conclusively be deemed to have been received by the addressee, if sent by fax or email on the day of transmission or, if such day is not a Business Day, on the next Business Day, if sent by courier, on the next following Business Day and, if sent by mail, on the fifth day following the posting thereof.

***(Signature page to follow)***

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**IN WITNESS WHEREOF** the Corporation has caused this Warrant Certificate to be signed by its duly authorized officer as of this<u> </u> day of January, 2025.

**SOL STRATEGIES INC.**

**Per: ________________________________**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signing Officer

**[Warrant Certificate]**

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**SCHEDULE "A"**

<u>**SUBSCRIPTION FORM**</u>

**TO BE COMPLETED IF WARRANTS ARE TO BE EXERCISED:**

**TO: SOL STRATEGIES INC.** <br>217 Queen St W #401 <br>Toronto, ON M5V 0R2

The undersigned holder of the within Warrant hereby irrevocably subscribes for____________ Common Shares of Sol Strategies Inc. (the "**Corporation**") pursuant to the within Warrant and tenders herewith a certified cheque or bank draft for $______________($2.50 per Common Share until January [•], 2030) in full payment therefor.

By executing this subscription form the undersigned represents and warrants that:

❏ (A) the undersigned holder (i) at the time of exercise of the Warrant is not in the United States, (ii) is not a U.S. Person and is not exercising the Warrant on behalf of a U.S. Person or person in the United States, (iii) did not execute or deliver this subscription form while in the United States (iv) delivery of the underlying common shares will not be to an address in the United States and (v) did not receive any solicitation for the exercise of this Warrant while in the United States; OR

❏ (B) the undersigned holder (i) is the original purchaser of the Warrant, (ii) is exercising the Warrant for its own account or for the account of a beneficial purchaser that was named in the securities purchase agreement pursuant to which it purchased such convertible debenture units, and (iii) is, and such beneficial purchaser, if any, is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act at the time of exercise of the Warrant, and (iv) the representations, warranties and covenants of the holder made in the original U.S. Accredited Investor Confirmation Certificate attached as Exhibit "A" to the securities purchase agreement in connection with its purchase of convertible debenture unit remain true and correct as of the date of exercise of these Warrants; OR

❏ (C) if the undersigned holder is resident in the United States or is a U.S. Person or is exercising the Warrant on behalf of a U.S. Person or person in the United States, the undersigned holder has delivered to the Corporation and the Corporation's transfer agent an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing in form and substance reasonably satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to the effect that with respect to the common shares to be delivered upon exercise of the Warrant, the issuance of such securities has been registered under the U.S. Securities Act and applicable securities laws of any state of the United States or an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States is available.

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**Note: Certificates or statements representing common shares will not be registered or delivered to an address in the United States unless box (B) or (C) immediately above is checked. Unless box (A) is checked the common shares delivered will be "restricted securities" under the U.S. Securities Act, will be subject to transfer restrictions under the U.S. Securities Act and any applicable securities laws of any state of the United States and will bear a legend to such effect. As used herein "United States" and "U.S. Person" have the meaning given such terms in Regulation S under the U.S. Securities Act. Holdings checking box (C) above are encouraged to provide a draft of the legal opinion to the Corporation.**

**DATED** this _____________________________day of _____________________________, 20

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| |
|:---|
| **NAME:** |
| <br>Signature**:** |
| Registration<br>instructions**:** |

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___________Please check if the Common Shares certificates are to be delivered at the office where this Warrant Certificate is surrendered, failing which the Common Shares certificates will be mailed to the address in the registration instructions set out above.

If any Warrants represented by this Warrant Certificate are not being exercised, a new Warrant Certificate representing the unexercised Warrants will be issued and delivered with the Common Share certificate.

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**SCHEDULE "B"**

<u>**WARRANT TRANSFER FORM**</u>

**FOR VALUE RECEIVED**, the undersigned (the "Transferor") hereby sells, assigns and transfers unto (name) ______________________________________________________ (the "Transferee") of (residential address) ____________________________________________________________________________________________________________ a total of ____________________ Warrants of the Sol Strategies Inc. (the "Company") registered in the name of the undersigned represented by the within certificate, and irrevocably appoints the Company as the attorney of the undersigned to transfer the said securities on the register of transfers for the said Warrants, with full power of substitution.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

❏ (A) the transfer is being made only to the Company;

❏ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and in compliance with any applicable local securities laws and regulations and the holder has provided herewith the Declaration for Removal of Legend attached as Appendix I to this Schedule "B" to the Warrant certificate, or

❏ (C) the transfer is being made within the United States or to, or for the account or benefit of, U.S. Persons, in accordance with a transaction that does not require registration under the U.S. Securities Act or applicable securities laws of any state of the United States and the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States, in which case the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

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❏ If transfer is to, or for the account or benefit of, a U.S. Person or a person in the United States, check this box.

NOTICE: +The signature of this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement or any change whatever, and must be guaranteed by a bank, trust company or a member of a recognized stock exchange. The guarantor must affix a stamp bearing the actual words "Signature Guaranteed".

DATED this <u>&nbsp;&nbsp;&nbsp;&nbsp;</u> day of__________________, 20_.

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| | |
|:---|:---|
| Signature Guaranteed | (Signature of transferring Warrantholder) |
|  | Name (please print) |
|  | Address |

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**Appendix I to Schedule "B" - Warrant Transfer Form** <br>**Declarations for Removal of Legend**

**To: Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of_________________ (Securities), represented by the Issuer's certificate number_______________, to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off' the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

By:   Date:   <br> Signature

Name (please print)  

**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer,<u> </u> (the "**Seller**"), dated<u> </u>**,** with regard to our sale, for such Seller's account, of the _________________________________________ (Securities), represented by certificate number<u> </u>of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

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| Name of Firm |  |
| By: |  |
|  | Authorized officer |
| Date: |  |

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## Exhibit 99.66

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*Execution Version*

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this <u>"Agreement")</u> is dated as of January 8, 2025, between Sol Strategies Inc., a corporation incorporated under the laws of the Province of Ontario (the <u>"Company"),</u> and the purchaser identified on the signature pages hereto (the <u>"Purchaser").</u>

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to the exemption from registration under Rule 506(b) of Regulation D of the Securities Act of 1933, as amended (the <u>"Securities Act")</u> and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States, or the exclusion from registration pursuant to Regulation S under the Securities Act <u>("Regulation S"</u>), as applicable, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

**ARTICLE I.** <br>**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions.</u> In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

<u>"$"</u> means Canadian dollars.

<u>"Act"</u> means the *Securities Act* (Ontario).

<u>"Affiliate"</u> means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with another Person, as such terms are used in and construed under Rule 405 under the Securities Act.

<u>"Applicable Securities Laws"</u> means all securities, corporate, and other laws, rules, regulations, and policies applicable in Canada, including the securities laws of each province and territory and the respective rules, regulations, instruments, blanket orders, blanket rulings under such laws together with applicable, published policies, policy statements, and notices of the Canadian Securities Administrators.

<u>"Board of Directors"</u> means the board of directors of the Company, as constituted from time to time.

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<u>"Business Day"</u> means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York and the City of Toronto are authorized or required by law to remain closed; <u>provided, however,</u> for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in the City of New York and the City of Toronto are generally are open for use by customers on such day.

<u>"Canadian Securities Administrators"</u> means, collectively, each of Canada's provincial and territorial securities regulators and securities regulatory authorities.

<u>"CDS"</u> means CDS Clearing and Depository Services Inc.

<u>"Closing"</u> means the closing of the purchase and sale of the Convertible Debenture Units pursuant to Section 2.1.

<u>"Closing Date"</u> means January 15, 2025, being the date that is five Trading Days following the date of the Disclosure Time, or such other date as may be agreed in writing by the parties.

<u>"Commission"</u> means the United States Securities and Exchange Commission.

<u>"Common Shares"</u> means the common shares in the capital of the Company and any other class of securities into which such securities may hereafter be reclassified or changed.

<u>"Common Shares Equivalents"</u> means any securities of the Company which would entitle the holder thereof to acquire at any time Common Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

<u>"Company Counsel"</u> means Fasken Martineau DuMoulin LLP with respect to Canadian matters and Dorsey & Whitney LLP with respect to U.S. matters.

<u>"Convertible Debenture Unit"</u> means a convertible debenture unit of the Company consisting of one (1) Debenture and 400 Warrants.

<u>"CSE"</u> means the Canadian Securities Exchange.

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<u>"CSE Approval"</u> means the approval (or conditional approval, which may be in the form of the Company not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Company posts notice of such transactions) of the CSE for listing and posting for trading the Debenture Shares and Warrant Shares.

<u>"Debenture"</u> means a $1,000 principal amount 2.5% unsecured debenture of the Company due on the Maturity Date, convertible at the discretion of the holder into Debenture Shares at a conversion price of $2.50 per Debenture Share and represented by a certificate substantially in the form set out as Exhibit "B" hereto.

<u>"Debenture Shares"</u> means the Common Shares issued or issuable to the Purchaser upon the conversion of the Debentures.

<u>"Disclosure Time"</u> means prior to 8:00 am (ET) on the first Trading Day following the execution of this Agreement.

<u>"Exchange Act"</u> means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

<u>"Governmental Authority"</u> means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

<u>"Information Record"</u> means information contained in any press release, material change report, financial statement, annual information form, annual or interim report, business acquisition report, proxy circular, prospectus, technical report, or other document of the Company which, from and after October 1, 2022, has, or has required to have been, filed on SEDAR+.

<u>"Institutional Accredited Investor"</u> means an institutional "accredited investor" within the meaning of Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) of Regulation D under the Securities Act.

<u>"Material Adverse Effect"</u> means the effect resulting from any event, change, circumstance, fact, or state of being which could reasonably be expected to have a significant and adverse effect on the business, affairs, capital, liabilities (absolute, accrued, contingent, or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations, or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company, but excluding any such event, change, circumstance, fact, or state of being attributable to or arising from: (A) general economic or business conditions; (B) Canada, the U.S. or foreign economies, or financial, banking or securities markets in general, or other general business, banking, financial or economic conditions; (C) acts of God or other calamities, pandemics (including COVID-19 and any Governmental Authorities response thereto), national or international political or social conditions, including the engagement and/or escalation by the U.S. or Canada in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the U.S. or Canada or any of their territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of the U.S. or Canada; (D) the identity of the Purchaser or its Affiliates; (E) conditions generally affecting the industry in which the Company participates; (F) the public announcement, entry into, performance of, or compliance with obligations under this Agreement or the transactions contemplated hereby, or the identity of the parties; or (G) the failure of the Company meet or achieve the results set forth in any internal projections (but not the underlying facts giving rise to such failure unless such facts are otherwise excluded pursuant to the clauses contained in this definition); provided that the exclusions in clauses (A), (B), (C), (E) or (G) shall not apply to the extent such events are disproportionately adverse to the Company, taken as a whole, as compared to other companies in the industries in which the Company operates.

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<u>"Maturity Date"</u> means the date that is the fifth anniversary of the Closing Date, on or before 5:00 p.m. (EST).

<u>"Person"</u> means an individual, firm, corporation, partnership, trust, fund, association, syndicate, organization or other organized group of persons, whether incorporated or not, and an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

<u>"ReIPO"</u> means an initial underwritten offering of the Common Shares pursuant to an effective Registration Statement filed under the Securities Act.

<u>"Registrable Securities"</u> means (a) the Debenture Shares, the Warrant Shares and the Interest Shares beneficially owned by the Purchaser from time to time, and (b) any Common Shares issued or issuable with respect to any shares described in subsection (a) above by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other reorganization or other similar event with respect to the Common Shares (it being understood that, for purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) the Commission has declared a Registration Statement covering such securities effective and such securities have been disposed of pursuant to such effective Registration Statement, or (ii) such securities are sold under circumstances in which all of the applicable conditions of Rule 144 are met.

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<u>"Registration Date"</u> means the date on which the Company becomes subject to Section 13(a) or Section 15(d) of the Exchange Act.

<u>"Registration Statement"</u> means any registration statement of the Company, including the prospectus, amendments and supplements (including shelf supplements) to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference in such registration statement.

<u>"Rule 144"</u> means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

<u>"Rule 904"</u> means Rule 904 of Regulation S promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

<u>"SEC"</u> means the U.S. Securities and Exchange Commission.

<u>"Securities"</u> means the Debentures, the Debenture Shares, the Warrants, the Warrant Shares and the Interest Shares.

<u>"SEDAR+"</u> means the System for Electronic Document Analysis and Retrieval+ of Canada.

<u>"Share Capital Summary"</u> means the summary of the Company's share capital as presented in <u>Schedule 3.1(e)</u> attached hereto.

<u>"Short Sales"</u> means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or borrowing Common Shares).

<u>"Subscription Amount"</u> means the aggregate amount to be paid for the Convertible Debenture Units purchased hereunder as specified below the Purchaser's name on the signature page of this Agreement and next to the heading "Subscription Amount," in Canadian dollars and in immediately available funds.

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<u>"Trading Day"</u> means a day on which the principal Trading Market is open for trading.

<u>"Trading Market"</u> means the TSX Venture Exchange, the Toronto Stock Exchange or the CSE (or any successors to any of the foregoing).

<u>"Transaction Documents"</u> means this Agreement, the debenture certificate evidencing the Debentures, warrant certificates evidencing the Warrants, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

<u>"U.S. Person"</u> means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act.

<u>"U.S. Purchaser"</u> means a Purchaser who is a Person in the United States or a U.S. Person, or was offered the Securities, or executed or delivered this Agreement, in the United States, or was in the United States at the time the Purchaser's buy order originated, or is purchasing the Securities for the account of or benefit of a U.S. Person or a Person in the United States, or is otherwise subject to the securities laws of the United States. For greater certainty, a "U.S. Purchaser" does not include a Purchaser that is a discretionary or similar account (other than an estate or trust) that is excluded from the definition of "U.S. Person" pursuant to Rule 902(k)(2)(i) of Regulation S, and is held on behalf of a Person that is not a U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States.

<u>"United States"</u> means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

<u>"VWAP"</u> means the volume-weighted-average-price of the Common Shares.

<u>"Warrant"</u> means a Common Share purchase warrant delivered to the Purchaser at the Closing, exercisable immediately into one Warrant Share at the Warrant Exercise Price, with a term ending on the Maturity Date and represented by a certificate substantially in the form set out as Exhibit "C" hereto.

<u>"Warrant Shares"</u> means the Common Shares issuable upon exercise of the Warrants.

<u>"Warrant Exercise Price"</u> means $2.50.

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**ARTICLE II.**

**PURCHASE AND SALE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purchase.</u> Upon the terms and subject to the conditions set forth herein, the Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase, from the Company an aggregate of 21,071.428 Convertible Debentures Units on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Debenture and Warrant Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Convertible Debenture Unit is comprised of one Debenture and 400 Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All or a portion of the principal amount of the Debentures and accrued and unpaid interest as of the date of conversion shall be convertible into Debenture Shares at any time and from time to time following Closing at the option of the holder at a conversion price of $2.50 per Debenture Share, in accordance with the terms of the certificate evidencing the Debentures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Debentures bear interest at a rate of 2.5% per annum from the date of issue, payable semi-annually in cash, or at the election of the Company (subject to certain limits), in freely tradeable Common Shares at a price per Common Share equal to the 20 trading day VWAP of the Common Shares on the CSE, calculated up to the date on which such interest is owing pursuant to the Debenture <u>("Interest Shares").</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Debentures will mature and the principal amount thereof and all accrued and unpaid interest thereon shall become fully payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Debentures shall rank *pari passu* with all outstanding and after-issued unsecured debt of the Company, provided that if the Company incurs additional indebtedness (the <u>"Additional Debt")</u> following the date of this Agreement which indebtedness guaranteed by any subsidiaries or is secured by recourse against the assets of the Company or any subsidiaries, at the option of the Purchaser, the debt evidenced by the Debentures shall be guaranteed and secured, as applicable, on substantially the same basis as the Additional Debt and rank *pari passu* with such Additional Debt, provided that the Purchaser shall enter into substantially the same credit support and security documents as the lender of such Additional Debt.

(0 Each Warrant entitles the Purchaser to acquire one (1) Warrant Share at any time following Closing at the option of the holder at an exercise price equal to the Warrant Exercise Price until the Maturity Date, in accordance with the terms of the certificate evidencing the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Closing.</u> On the Closing Date, the Purchaser shall deliver to the Company, via wire transfer, immediately available funds equal to the Subscription Amount, and the Company shall deliver to the Purchaser certificates representing the Debentures and Warrants comprising the Convertible Debenture Units, and the Company and the Purchaser shall deliver the other items set forth in Section 2.4 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.4 and 2.5, the Closing shall occur at the offices of the Company Counsel in Canada or such other location as the parties shall mutually agree.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Deliveries.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate evidencing the Debentures, registered in the name of the Purchaser, setting out the principal amount, interest rate, interest payment schedule, and conversion terms, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate evidencing the Warrants, registered in the name of the Purchaser, entitling the Purchaser to acquire Common Shares, with the number of Common Shares, subject to adjustment as provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) this Agreement duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Company certifying the matters set forth in Sections 2.5(b)(i) to 2.5(b)(iv); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreements and other documents as the Purchaser may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement duly executed by the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Purchaser is a U.S. Purchaser, then the U.S. Purchaser is purchasing the Securities as an Institutional Accredited Investor, and is delivering a duly completed and executed copy of a U.S. Accredited Investor Confirmation Certificate (including the questionnaire and certifications included therein) in the form attached hereto as <u>Exhibit "A"</u> (a <u>"U.S. Accredited Investor Confirmation Certificate");</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Subscription Amount by wire transfer to the account specified in writing by the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate executed by an officer of the Purchaser certifying the matters set forth in Sections 2.5(a)(i) and 2.5(a)(ii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other agreement and other documents as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Closing Conditions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchaser contained herein (unless any representations and warranties are (x) qualified by materiality, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the delivery by the Purchaser of the items set forth in Section 2.4(b) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless any representations and warranties are (x) qualified by materiality or Material Adverse Effect, in which case they shall be true and correct in all respects, or (y) made as of a specific date therein, in which case they shall be accurate in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since the date of this Agreement, no Material Adverse Effect shall have occurred;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the receipt by the Company of the CSE Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the delivery by the Company of the items set forth in Section 2.4(a) of this Agreement.

**ARTICLE III.**

**REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Representations and Warranties of the Company.</u> The Company hereby makes the following representations and warranties to the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company: (a) is incorporated and validly subsisting corporation under the laws of its jurisdiction of incorporation and is up-to-date in all filings required to be made by it under the laws of its jurisdiction of existence; (b) has all requisite corporate power, capacity and authority to carry on its business as now conducted or proposed to be conducted and to execute and deliver the Agreement and to carry out the transactions contemplated by this Agreement and carry out the obligations hereunder; and (c) is duly qualified, licensed or registered to transact business in each jurisdiction in which such qualification, license or registration is required, whether by reason of the ownership or leasing of property or the conduct of business, and is carrying on business in material compliance with all applicable laws, rules and regulations of each such jurisdiction. Notwithstanding the foregoing, the Purchaser is aware that certain securities regulatory authorities, including the U.S. Securities and Exchange Commission, may take positions regarding the classification of certain assets, operations, or activities of the Company as involving securities or derivatives, which could, individually or collectively, affect the business, operations, or regulatory obligations of the Company, including that (a) the SEC has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction). The Company has taken all necessary corporate action to authorize the execution and delivery of this Agreement, and the performance of its obligations under this Agreement and to observe and perform its obligations hereunder in accordance with the provisions hereof, including the creation, issue and sale of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All necessary corporate actions have been taken by the Company to authorize the creation, issue and sale of the Securities, and the delivery to the Purchaser of certificates evidencing the Debentures and the Warrants. On the Closing Date, the Debentures and the Warrants will be, and the Debenture Shares will be at the time of conversion of the Convertible Debenture Units and the Warrant Shares will be at the time of exercise of the Warrants, and the Interest Shares will be at the time of the election made by the Company, free and clear of all liens and restrictions on transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the due conversion of the Debentures in accordance with the terms thereof, the due exercise of the Warrants in accordance with the terms thereof (including payment of the Warrant Exercise Price) and the due election to pay interest in Interest Shares under the Debentures, the Debenture Shares, the Warrant Shares and the Interest Shares, respectively, will be validly issued and outstanding as fully paid and non-assessable Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The capitalization of the Company as of the date hereof is, and except for the exercise of convertible securities in the ordinary course after the date hereof will be, as set forth on the Share Capital Summary. As of the date hereof and prior to the issuance of the Securities contemplated by this Agreement, no shareholder other than as set out on the Share Capital Summary holds 5% or more of the Common Shares. There are no plans to amend the articles or by-laws of the Company. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except as a result of the purchase and sale of the Securities and as set forth on the Share Capital Summary, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Common Shares, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional Common Shares or Common Shares Equivalents. The issuance and sale of the Securities will not obligate the Company to issue Common Shares or other securities to any Person (other than the Purchaser). There are no outstanding securities or instruments of the Company with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company. There are no outstanding securities or instruments of the Company that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a security of the Company. The Company does not have any share appreciation rights or "phantom share" plans or agreements or any similar plan or agreement. All of the outstanding shares of share capital of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all applicable securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No approval or authorization of any shareholder or, other than the CSE Approval, others, is/are required for the issuance and sale of the Securities. There are no shareholders agreements, pooling agreements, voting agreements or other similar agreements with respect to the share capital of the Company to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company is a "reporting issuer" in good standing under Applicable Securities Laws in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, is not on the list of defaulting issuers as maintained by the applicable Canadian Securities Administrators for a default of any requirement of Applicable Securities Laws, and neither the CSE nor any other regulatory authority having jurisdiction over the Company has issued any order preventing or suspending trading of any securities of the Company. The Company is also in compliance in all material respects with all Applicable Securities Laws, and all material filings and fees required to be made and paid by the Company pursuant to Applicable Securities Laws and general corporate laws have been made and paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company (i) was not and is not an "ineligible issuer" (as defined in Rule 405 under the Securities Act) (an <u>"Ineligible Issuer"),</u> without taking into account any determination by the Commission pursuant to Rule 405 under the Securities Act that it is not necessary that the Company be considered an Ineligible Issuer, and (ii) was and is a "foreign private issuer" within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the knowledge of the Company, except as set forth in the Share Capital Summary, no person beneficially owns, or exercises control or direction over, directly or indirectly, 5% or more of the outstanding Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company does not own or control, directly or indirectly, any interest in any corporation, partnership, joint venture or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Common Shares are listed and posted for trading on the CSE. No order ceasing or suspending trading in any securities of the Company or prohibiting the issue, sale and delivery (as applicable) of Common Shares or trading of any of the Company's securities has been issued and is in effect and no proceedings for such purpose has been instituted or are pending or, to the Company's knowledge, contemplated or threatened. The Company has not taken any action which would be reasonably expected to result in the delisting or suspension of the Common Shares on or from the CSE and the Company is in material compliance with the rules and regulations of the CSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Company) pending or, to the knowledge of the Company, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, against or by the Company or any Affiliate of the Company that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and the Company is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. There are no outstanding and unsatisfied judgements, decrees, orders, writs, injunctions, awards, rules, policies or regulations of any court, tribunal or other Governmental Authority or other judicial order binding upon or enforceable against the Company which may affect the performance of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company is in compliance in all material respects with its disclosure obligations, and has filed all documents and information required to be filed by it under Applicable Securities Laws. All of the documents filed as part of the Information Record, as of their respective dates of filing and as of the date of any amendments thereto, complied in all material respects, both in form and content, with the requirements of Applicable Securities Laws, and did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. There is no fact of specific application to the Company known to the Company which the Company has not publicly disclosed, or so far as the Company can reasonably foresee, could materially adversely affect, the assets, liabilities (contingent or otherwise), affairs, business, capital, condition (financial or otherwise), operations or prospects of the Company or the ability of the Company to perform its obligations under this Agreement. The Company has not filed any confidential material change reports with any securities regulatory authority that remains confidential. The Company is not subject to a continuous disclosure review with any Canadian Securities Administrators nor are there any outstanding unresolved comments from any Canadian Securities Administrators in respect of the disclosure made in the Company's Information Record. The Company is not aware of any circumstances presently existing under which liability is or would reasonably be expected to be incurred under Part XXIII.1 of the *Securities Act* (Ontario) and analogous provisions under Applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance: (a) that transactions are completed in accordance with the general or specific authorization of management and directors of the company; (b) that transactions are recorded as necessary to permit the preparation of consolidated financial statements for the Company in conformity with International Financial Reporting Standards (<u>"IFRS"</u>) and to maintain asset accountability; (c) that access to assets of the Company is permitted only in accordance with the general or specific authorization of management and directors of the Company; (d) that the recorded accountability for assets of the Company is compared with the existing assets of the Company at reasonable intervals and appropriate action is taken with respect to any differences therein; and (e) regarding the prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Company that could have a material effect on the Company's interim or annual financial statements. The Company is in compliance in all material respects with National Instrument 52-109 - *Certification of Disclosure in Issuer's Annual and Interim Filings* of the Canadian Securities Administrators, as applicable to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company Financial Statements were prepared in accordance with the IFRS, as issued by the International Accounting Standards Board, consistently applied in accordance with past practice and no Material Adverse Effect has occurred since October 1, 2023. The Company Financial Statements (i) comply as to form in all material respects with the requirements of Applicable Securities Laws; (ii) have been prepared in conformity with IFRS, consistently applied throughout the periods covered thereby, and all adjustments necessary for a fair presentation of the results for such periods have been made in all material respects; (iii) fairly present the consolidated financial condition of the Company as at the respective dates thereof; (iv) contain no misrepresentations and fairly present the consolidated results of operations, cash flow and income of the Company during the respective fiscal periods covered thereby; and (v) contain and reflect adequate provision or allowance for all reasonably anticipated liabilities, expenses and losses of the Company. Other than as disclosed in the Company Financial Statements (including any notes thereto), there are no off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the Company with unconsolidated entities or other persons that have or could reasonably be expected to have a Material Adverse Effect. There has been no change in accounting policies or practices of the Company other than as set out in the Company Financial Statements. For purposes of this Section 3.1(n), "Company Financial Statements" means the audited consolidated financial statements of the Company for the financial years ended September 30, 2023 and 2022 and the unaudited consolidated financial statements of the Company for the nine months ending June 30, 2024 and 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Kingston Ross Pasnak LLP, the Company's current auditors, who audited the Company Financial Statements and who provided their audit report thereon, are independent public accountants as required under Applicable Securities Laws and there has never been a reportable event (within the meaning of National Instrument 51-102 - *Continuous Disclosure Obligations)* between the Company and Kingston Ross Pasnak LLP.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The audit committee of the board of directors of the Company is comprised and operates in accordance with the requirements of National Instrument 52-110 *-Audit Committees.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) TSX Trust Company has been duly appointed by the Company as the registrar and transfer agent for the Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) To the best of its knowledge, there are no material facts or material changes related to the Company that have not been generally described to the Purchaser. Without limiting the generality of the foregoing, since October 1, 2023, the Company has carried on business in the ordinary course, and except as disclosed in the Corporation's Information Record, there has not been:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any material change in the consolidated assets, properties, capital, liabilities or obligations (absolute, accrued, contingent or otherwise), business, business prospects, affairs, condition (financial or otherwise) or results of operations of the Corporation, or any transactions entered into which are material with respect to the Company on a consolidated basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any material change in the share capital or long-term debt of the Company, other than as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any declaration, setting aside or payment of any dividend, or other distribution with respect to any shares in the capital of the Company, or any direct or indirect redemption, purchase or other acquisition of any shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the incurrence of any material capital expenditure or the making of any commitment therefor, or the incurrence of any obligation or liability, direct or indirect, contingent or otherwise, which individually, or in the aggregate, is material to the Company on a consolidated basis, other than in the ordinary course of business of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any change in accounting or tax policies or practices followed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Insolvency

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company is not an "insolvent person", has not committed an "act of bankruptcy", in each case, within the meaning of the *Bankruptcy and Insolvency Act* (Canada) and has not sought protection from the creditors thereof before any court or pursuant to any legislation, proposed a compromise or arrangement to the creditors thereof generally, taken any act or undertaken or become subject to a proceeding with respect to a compromise or arrangement, taken any act or undertaken or become subject to or have been threatened with a proceeding to be declared bankrupt, made any assignment for the benefit of its creditors, had any person holding any lien or receiver take possession of any of the property thereof, had an execution or distress become enforceable or levied upon any portion of the property thereof or had or have been threatened with any petition for a receiving order in bankruptcy filed against it or to declare it bankrupt or insolvent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No administrator, administrative receiver or any other receiver, receiver-manager or manager has been appointed or threatened to be appointed by any person in respect of the Company or all or any of its assets and, to the knowledge of the Company, no steps have been taken to initiate any such appointment. No analogous appointments have been made or initiated under any laws applying to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No order has been made, no resolution has been passed and no petition has been filed or threatened against the Company for the winding up, dissolution or liquidation of the Company, or for a provisional liquidator to be appointed in respect of the Company and no petition has been presented or threatened and no meeting has been convened for the purpose of the winding up, dissolution or liquidation of the Company. The Company is not subject to analogous proceedings under any laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Except as disclosed in the Company's Information Record, the Company has not approved or entered into any agreement in respect of, and has no knowledge of: (a) the purchase of material assets or any interest therein or the sale, transfer or other disposition of any material portion of its assets or any interest therein currently owned, directly or indirectly, by the Company whether by asset sale, transfer of shares or otherwise; (b) the change of control (by sale or transfer of shares or sale of all or substantially all of the property and assets of the Company) of the Company; or (c) a proposed or planned disposition of Common Shares by any shareholder who owns, directly or indirectly, 10% or more of the outstanding Common Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company has paid when due all applicable taxes of whatsoever nature for all tax years prior to the date hereof to the extent that such taxes have become due or have been alleged to be due. The charges, accruals and reserves on the books of the Company in respect of any liability for taxes for any year not finally determined are sufficient to meet any reasonable assessment or reassessment for additional taxes for any year not finally determined. The Company has duly and timely filed or caused to be filed within the times and within the manner prescribed by law, all federal, provincial, local and foreign tax returns and reports which are required to be filed by or with respect to the Company, such returns and reports are true, complete and correct in all material respects, and there are no agreements, waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by the Company or the payment of any material tax, governmental charge, penalty, interest or fine against any of them. The Company is not delinquent in the payment of any taxes. There are no pending tax audits of any returns of taxes. No deficiency or addition to any taxes or interest or penalty for any taxes has been proposed, asserted or assessed against the Company. The Company has duly and timely withheld or collected and remitted to the appropriate taxing authority (or made adequate provision for the remittance of) all amounts required by law to be withheld or collected and remitted by it in respect of any taxes, governmental charges or assessments. There are no material actions, suits, proceedings, investigations or claims now threatened or, to the knowledge of the Company, pending against the Company which could result in a material liability in respect of taxes, charges or levies of any governmental authority, penalties, interest, fines, assessments or reassessments or any matters under discussion with any Governmental Authority relating to taxes, governmental charges, penalties, interest, fines, assessments or reassessments asserted by any such authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company is not a party to or bound or affected by any commitment, agreement or document containing any covenant which expressly limits the freedom of the Company to compete in any line of business, transfer or move any of its assets or operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Other than as disclosed in the Company's Information Record, the Company has not guaranteed or otherwise given security for or agreed to guarantee or give security for any liability, debt or obligation of any other person. The Company does not have any material liabilities, obligations, indebtedness or commitments whether accrued, absolute, contingent or otherwise, which are not disclosed or referred to in the Company's Information Record, other than liabilities, obligations or indebtedness or commitments incurred after the last period covered by the Company's Information Record in the normal course of business or in connection with the purchase and sale herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company is not in violation of its constating documents. None of the purchase and sale herein, the execution, delivery and performance of this Agreement, the compliance by the Company with the terms hereof, or the consummation of the transactions contemplated herein, including, without limitation, the issuance and sale of the Securities, does or will:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require approval, authorization, consent, order or agreement of, or filing, registration, qualification or recording with, any governmental agency, body or authority, court, stock exchange, securities regulatory authority or other person, except as have already been obtained or may be required under Applicable Securities Laws and the policies of the CSE and will be obtained prior to the Closing Date (other than customary post-closing filings required to be submitted within the applicable time frame pursuant to Applicable Securities Law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any material respect (in the cases of (3) to (5)): (A) result in any breach or violation; (B) be in conflict with; (C) constitute a default under; (D) give rise to a right of termination, cancellation or acceleration of any obligation; (E) result in the loss of or lien upon any of the consolidated properties or assets of the Company; or (F) create a state of facts which (after notice or lapse of time or both) would give rise to any of the foregoing, in each case, under:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the articles or by-laws of the Company, or any other constating document of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any resolution passed by the directors (or any committee thereof) or shareholders of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any statute, law or any judgment, decree, order, rule, policy or regulation of any court, Governmental Authority, arbitrator, stock exchange or securities regulatory authority applicable to the Company or any of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any contract, agreement, or indenture to which the Company is a party or is bound or by which any of their respective properties or assets are bound (including any indentures, mortgages, deeds of trust, leases or other agreements or instruments); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any authorization held or obtained by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the Company defaulting on the payment of any material obligation owed by it which is now due; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) trigger any change of control provisions, or other contingent payments, in any agreements the Company is party to, nor will the Company's board pass a resolution that states that the transactions carried out in connection with this Agreement constitutes a change of control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Other than as disclosed in the Information Record, none of the directors or officers of the Company are now, or have ever been: (a) subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from acting as a director or officer of a public company or of a company listed on a particular stock exchange; or (b) subject to an order preventing, ceasing or suspending trading in any securities of the Company or other public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Employees and Employment Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All material employment agreements, consulting agreements, severance agreements and change of control agreements in respect of any NEOs (as defined in Form 51102F6 - *Statement of Executive Compensation),* and all Employee Plans have been, in all material respects, disclosed in the Information Record to the extent required under Applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company is in compliance in all material respects with all laws respecting employment and employment practices, terms and conditions of employment, occupational health and safety, pay equity and wages, and has not and is not engaged in any unfair labour practice, and there are no current or pending claims, complaints, notices, outstanding decisions, orders or settlements under any human rights legislation, employment standards legislation, workers' compensation legislation, occupational health and safety legislation or similar legislation, nor has any event occurred which would reasonably be expected to give rise to any of the foregoing. The Company has not received any notice of any unresolved matter and there are no outstanding orders under any employment or human rights legislation in any jurisdiction in which the Company carries on business or has employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each plan for retirement, bonus, stock purchase, profit sharing, stock option, deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation, legal benefits, unemployment benefits, vacation, pension, incentive or otherwise contributed to, or required to be contributed to, by the Corporation for the benefit of any current or former director, officer, employee or consultant of the Corporation (collectively, the <u>"Employee Plans"),</u> has been maintained in material compliance with its terms and with the requirements prescribed by any and all laws that are applicable to such plan. The Company has no, nor has it ever had, any pension plan (as such term is defined in the relevant legislation of the applicable jurisdiction).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All material accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, federal, provincial or local pension plan premiums, accrued wages, salaries and commissions and payments for any plan for any officer, director, employee or consultant of the Company have been accurately reflected in the books and records of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) There is no labour disruption, strike, dispute, slowdown, stoppage or conflict involving the Company, and there is no complaint or grievance pending or, to the knowledge of the Company, threatened from any labour groups. The Company is not party, or otherwise subject to, any collective bargaining agreement and no collective bargaining agreement is currently being negotiated by the Company. There has not been, and there is not currently, any other labour trouble which is having a Material Adverse Effect or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Company owns or possesses adequate enforceable rights to use all trademarks, copyrights and trade secrets, if any, used or proposed to be used in the conduct of its business and, to the knowledge of the Company, the Company is not infringing upon the rights of any other person with respect to any such trademarks, copyrights or trade secrets and no other person has infringed any such trademarks, copyrights or trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Except as disclosed in the Information Record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none of the directors, officers or employees of the Company, any known holder of more than 10% of any class of shares of the Company, or any known associate or affiliate of any of the foregoing persons (as such terms are defined in the *Securities Act* (Ontario)), has had any material interest, direct or indirect, in any material transaction, within the previous two years or has any material interest in any proposed material transaction involving the Company which, as the case may be, materially affected, is material to or will materially affect the Company;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the knowledge of the Company, no insider of the Company (as defined in Applicable Securities Laws) has a present intention to sell any securities of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to the knowledge of the Corporation, except as disclosed on SEDI, no insider of the Corporation (as defined in applicable Securities Laws) has sold any securities issued by the Company or otherwise taken steps to reduces its, his or her financial exposure to the price or value of the Common Shares within the 15 days prior to the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) except for usual director, employee or consulting arrangements made in the ordinary and normal course of business, the Company is not party to any contract or understanding with any director, officer, employee, securityholder or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no director, officer or employee of the Corporation and no person which is an affiliate or associate of the Company, owns, directly or indirectly, any interest in (except for equity securities as disclosed in the Company's Information Record), or is a director, officer employee or consultant of any person which is, or is engaged in, a business competitive with the Company, which materially adversely impacts, or would reasonably be expected to materially and adversely impact, their ability to duly properly perform the services to be performed by such person for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Company does not owe any monies to, have any present loans to, nor has it borrowed any monies from or is otherwise indebted to, any director, officer, employee, securityholder of the Company, or any other person not dealing at arm's length (as defined in the *Income Tax Act* (Canada)) with the Company, except for usual employee reimbursements and compensation paid in the ordinary and normal course of its business; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to the knowledge of the Company, no director, officer employee or securityholder of the Company has any cause of action or other claim whatsoever against, or owes any amount to, the Company, except for claims in the ordinary and normal course of the business of the Company such as for accrued vacation pay or other amounts or matters which would not be material to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) The properties and assets in which the Company has a direct or indirect economic interest are insured against loss or damage in such amounts that are customary for the business in which they are engaged with responsible insurers on a basis consistent with insurance obtained by reasonably prudent participants in comparable businesses, and such coverage is in full force and effect, and the terms of any policies in respect thereof have not been breached and the insured has not failed to promptly give any notice or present any material claim thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) None of the Company nor, to the knowledge of the Company, any director, officer, employee, consultants, representative, agent or affiliate or other person acting on behalf of the Company, is aware of or has taken any action, directly or indirectly, that would reasonably be expected to result in a violation by such persons of the *United States Foreign Corrupt Practices Act of 1977,* as amended, and the rules and regulations thereunder, the *Corruption of Foreign Public Officials Act* (Canada), as amended or the similar laws of any other jurisdiction applicable to the Company (collectively, the <u>"Anti-Corruption Laws")</u> and the Company has conducted its businesses in compliance with the Anti-Corruption Laws and has instituted and maintains policies and procedures designed to ensure continued compliance therewith. There are no proceedings under any Anti-Corruption Laws pending against the Company or, to the knowledge of the Company, threatened against or affecting the Company. None of the Company, nor to the knowledge of the Company, any director, officer, employee, consultant, representative or agent of the foregoing, has: (a) conducted or initiated any review, audit, or internal investigation that concluded the Company, or any director, officer, employee, consultant, representative or agent of the foregoing violated any anti-bribery or anticorruption laws or committed any material wrongdoing; or (b) made a voluntary, directed, or involuntary disclosure to any Governmental Authority responsible for enforcing anti-bribery or anti-corruption laws, in each case with respect to any alleged act or omission arising under or relating to non-compliance with any such laws, or received any notice, request, or citation from any person alleging non-compliance with any such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) The operations of the Company are, and have been conducted at all times in compliance with the financial record-keeping and reporting requirements of anti-money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority to which the Company is subject, including the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (collectively, the <u>"Money Laundering Laws"),</u> and no action, suit or proceeding by or before any Governmental Authority or body or arbitrator involving the Company or with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) None of the Company, nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company is currently the subject or the target of any sanctions administered or enforced by the U.S. Government, including, without limitation, the U.S. Department of the Treasury's Office of Foreign Assets Control, the United Nations Security Council, the European Union, His Majesty's Treasury, or other relevant sanctions authority (collectively, <u>"Sanctions"),</u> nor is the Company located, organized or resident in a country or territory that is the subject of Sanctions; and the Company will not directly or indirectly use the proceeds of the purchase and sale hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity: (a) to fund any activities of or business with any person or entity, or in any country or territory, that, at the time of such funding, is the subject of Sanctions; or (b) in any other manner that will result in a violation by any person or entity (including any person or entity participating in the transaction, whether as agent, advisor, investor or otherwise) of Sanctions. The Company has not knowingly engaged in and is not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any country that is subject to Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) The Company is not required to be registered as an investment company under the United States *Investment Company Act* of 1940, as amended, and is not relying on any exemption therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) To the knowledge of the Company, the Company has not withheld from the Purchaser any fact or information relating to the Company or any of the transactions contemplated hereby that would be material to a reasonable prospective investor in the Company. No representation or warranty by the Company in this Agreement and no statement contained in the Company's Information Record or any certificate or other document furnished or to be furnished to the Purchaser under this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Representations and Warranties of the Purchaser.</u> The Purchaser hereby makes the following representations and warranties to the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has the legal capacity to enter into and be bound by this Agreement and further certifies that all necessary approvals of directors, shareholders, partners or otherwise have been given and obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Agreement has been duly and validly authorized, executed and delivered by and constitutes a legal, valid, binding and enforceable obligation of the Purchaser enforceable in accordance with its terms (subject to bankruptcy, insolvency and other laws limiting the enforceability of creditors' rights and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the entering into of this Agreement and the transactions contemplated hereby will not, in any material respect, result in a violation of any of the terms or provisions of, any law applicable to the Purchaser, or any agreement to which the Purchaser is a party or by which it is bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Purchaser has not received or been provided with, nor has the Purchaser requested, nor does the Purchaser have any need to receive, any prospectus or offering memorandum, or any other document describing the business and affairs of the Company which has been prepared for delivery to, and review by, prospective purchasers in order to assist the Purchaser in making an investment decision in respect of the acquisition contemplated hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Purchaser has not become aware of any advertisement in printed media of general and regular paid circulation (or other printed public media), radio, television or telecommunications or other form of advertisement (including electronic display) with respect to the distribution of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it has relied solely upon information publicly available on SEDAR+ relating to the Company and not upon any verbal or written representation as to fact or otherwise made by or on behalf of the Company (except as set forth herein) and it does not have knowledge of any material fact about the Company that has not been publicly disclosed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if the Purchaser is a U.S. Purchaser, at the time the Purchaser was offered the Debentures and Warrants, it was, and as of the date hereof it is, an Institutional Accredited Investor and has completed, executed and delivered the Company Exhibit "A" hereto and makes the representations and warranties contained therein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Purchaser acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no securities or similar regulatory authority has reviewed or passed on the merits of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there is no government or insurance covering the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there are risks associated with the purchase of Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there are restrictions on the Purchaser's ability to resell the Securities and it is the responsibility of the Purchaser to find out what those restrictions are and to comply with them before selling any of the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company or its agent has advised the Purchaser that the Company is relying on an exemption from the requirements to provide the Purchaser with a prospectus and to sell the Securities through a person or company registered to sell securities under Applicable Securities Laws and, as a consequence of acquiring the Securities pursuant to these exemptions, certain protections, rights and remedies provided by Applicable Securities Laws, including statutory rights of rescission or damages, will not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it acknowledges that no representation has been made to it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as to the future value or price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that any person will resell or repurchase the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) that any person will refund the purchase price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Company may complete additional financings in the future in order to develop the business of the Company and to fund its ongoing development; that there is no assurance that such financings will be available and, if available, on reasonable terms; any such future financings may have a dilutive effect on current securityholders, including the Purchaser; and that if such future financings are not available, the Company may be unable to fund its ongoing development and the lack of capital resources may result in the failure of its business venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) it has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment and it, or, where it is not purchasing as principal, each beneficial purchaser, is able to bear the economic risk of loss of its investment and the Purchaser is capable of assessing the proposed investment as a result of the Purchaser's financial experience or as a result of advice received from a registered person other than the Company or any affiliates hereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) it understands that the Securities are being offered for sale only on a "private placement" basis and that the sale and delivery of the Securities is conditional upon such sale being exempt from the requirements as to the filing of a prospectus or the preparation of an offering memorandum in prescribed form or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus or delivering an offering memorandum in prescribed form and that certain protections, rights and remedies provided by applicable securities legislation, in connection with the filing of a prospectus may not be available to the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if required by applicable securities legislation, regulations, rules, policies or orders or by any securities commission, stock exchange or other regulatory authority, the Purchaser will execute, deliver, file and otherwise assist the Company in filing, such reports, undertakings and other documents with respect to the issue of the Securities as may be required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) it will not resell the Securities or any of them, except in accordance with the provisions of the Applicable Securities Laws and the rules of the CSE or such other Trading Market as the Common Shares trade on at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the funds representing the Subscription Amount advanced by the Purchaser will not be proceeds of crime under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the <u>"PCMLTFA")</u> or the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act, as may be amended from time to time (the <u>"PATRIOT Act"</u>). The Purchaser acknowledges that the Company may be required by law to confidentially disclose the Purchaser's information pursuant to the PCMLTFA and the PATRIOT Act. To the best of the Purchaser's knowledge: (i) the funds representing the Subscription Amont are not derived from criminal activity in any jurisdiction; (ii) the funds representing the Subscription Amount are not being provided on behalf of an unidentified person or entity to the Purchaser; and (iii) the Purchaser shall promptly notify the Company if this representation becomes untrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) it has been independently advised as to the restrictions with respect to trading in the Securities imposed by applicable securities legislation, confirms that no representation has been made to it by or on behalf of the Company with respect thereto, acknowledges that it is aware of the characteristics of the Securities, the risks relating to an investment therein and of the fact that it may not be able to resell the Securities except in accordance with limited exemptions under applicable securities legislation and regulatory policy until expiry of the applicable restriction period and compliance with the other requirements of applicable law, and it agrees that any certificates representing the Securities may bear such legends as are required under applicable securities law and/or policies of applicable securities exchanges indicating that the resale of such securities is restricted; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Purchaser acknowledges that it has been encouraged to and should obtain independent legal, income tax and investment advice with respect to its hereunder and accordingly, has been independently advised as to the meanings of all terms contained herein relevant to the Purchaser for the purposes of giving representations, warranties and covenants under this Agreement.

**ARTICLE IV.**

**OTHER AGREEMENTS OF THE PARTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Transfer Restrictions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement, Rule 904 or Rule 144 (if available), or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchaser acknowledges that the Company may be required to file with the Canadian Securities Administrators in Ontario a report regarding the trade. The Purchaser acknowledges that such report may require the Company to disclose the Purchaser's full legal name, residential address, telephone number and email address and the number of Securities the Purchaser purchased, the purchase price for such Securities and specific details of the prospectus exemption relied upon under applicable securities laws to complete such purchase, including how the Purchaser qualifies for such exemption. The Purchaser consents to the disclosure of such information and acknowledges that such information is made available to the public under securities legislation of Ontario. The Purchaser acknowledges that this information is collected indirectly by the applicable securities regulatory authority or regulator under the authority granted to it under, and for the purposes of the administration and enforcement of, the securities legislation and that the Purchaser may contact the applicable securities regulatory authority or regulator by way of the following information for more information regarding the indirect collection of such information: Ontario Securities Commission, 20 Queen Street West, 22nd Floor Toronto, Ontario M5H 3S8, Telephone: (416) 593- 8314, Toll free in Canada: 1-877-785-1555, Facsimile: (416) 593-8122, <u>Email: exemptmarketfilings@osc.gov.on.ca</u><u>,</u> Public official contact regarding indirect collection of information: Inquiries Officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Integration.</u> The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities hereunder or that would be integrated with the offer or sale of the Securities hereunder for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval of the sale of the Securities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Securities Laws Disclosure; Publicity.</u> The Company shall (a) by the Disclosure Time, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a material change report under the Applicable Securities Laws, with the Canadian Securities Administrators within the time required by the Applicable Securities Laws. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly disclosed all material, nonpublic information delivered to the Purchaser by the Company, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Listing of Common Shares.</u> The Company hereby agrees to use commercially reasonable efforts to maintain its status as a "reporting issuer" (or the equivalent thereof) in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, not be in default in respect of the Applicable Securities Laws and the listing or quotation of the Common Shares on a Trading Market, and concurrently with the Closing, the Company shall have secured the listing of all of the Debenture Shares and Warrant Shares on the CSE and will secure the listing of all Interest Shares on the CSE. The Company further agrees, if the Company applies to have the Common Shares traded on any other Trading Market, it will then include in such application all of the Debenture Shares, Warrant Shares and Interest Shares, and will take such other action as is necessary to cause all of the Debenture Shares, Warrant Shares and Interests Shares to be listed or quoted on such other Trading Market as promptly as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Shares on a Trading Market and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the Trading Market. The Company agrees to maintain the eligibility of the Common Shares for electronic transfer through CDS, including, without limitation, by timely payment of fees to CDS in connection with such electronic transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Certain Transactions and Confidentiality.</u> The Purchaser covenants that neither it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of the Company's securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4. The Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, the Purchaser will maintain the confidentiality of the existence and terms of this transaction. Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) the Purchaser does not make any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4, (ii) the Purchaser shall not be hereby restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Form D; Blue Sky Filings.</u> If any of the Securities are issued to a U.S. Purchaser pursuant to Rule 506(b) of Regulation D under the Securities Act, the Company agrees to timely file a Form D with respect to the Securities as required under Regulation D under the Securities Act and to provide a copy thereof, promptly upon request of the U.S. Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the U.S. Purchaser at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the U.S. Purchaser. The Company also agrees to make all required filings under Applicable Securities Laws in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>PFIC Matters.</u> If a U.S. Purchaser so requests in writing for any taxable year of the Company, the Company, after consulting with its outside accounting firm, shall within 15 days notify the U.S. Purchaser in writing that either (A) the Company was not a PFIC for such year, or (B) the Company was a PFIC for such year, in which event the Company shall provide to the U.S. Purchaser, upon the reasonable written request of the U.S. Purchaser, the information reasonably necessary to allow the U.S. Purchaser to elect to treat each of the Company as a "qualified electing fund" (within the meaning of Code Section 1295) for such year, including a "PFIC Annual Information Statement" as described in U.S. Treasury Regulation Section 1.1295-1(g)(1) (or any successor Treasury Regulation). For purposes hereof, "PFIC" means a "passive foreign investment company" within the meaning of Section 1297(a) of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Registration Rights.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than 180 days after the earlier of (i) the consummation of a ReIPO and (ii) the Registration Date, the Company shall, at its expense, use its reasonable best efforts to qualify and remain qualified to register the offer and sale of securities under the Securities Act pursuant to a Registration Statement on Form F-10 or any successor form thereto using a Canadian short-form prospectus under MJDS (or if eligible, on Form S-3 or F-3 or any successor form thereto). At such time as the Company shall have qualified for the use of a Registration Statement on such Form, the holders of Registrable Securities shall have the right to request an unlimited number of registrations under the Securities Act of all or any portion of their Registrable Securities pursuant to a Registration Statement on such Form or any similar short-form Registration Statement (each, a <u>"Short-Form Registration").</u> Each request for a Short-Form Registration shall specify the number of Registrable Securities requested to be included in the Short-Form Registration. Upon receipt of any such request, the Company shall promptly (but in no event later than 10 days following receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have five days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall prepare and file with (or confidentially submit to) the Commission a Registration Statement on such Form covering all of the Registrable Securities that the holders thereof have requested to be included in such Short-Form Registration within five days after the date on which the initial request is given and shall use its reasonable best efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, but not later than the Target Filing Date, the Company shall, at its expense, (i) prepare and file with (or confidentially submit to) the Commission a Registration Statement on Form F-10 a Canadian shelf prospectus under MJDS (or if eligible, on Form S-3 or F-3) or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration Statement")</u> that covers all Registrable Securities then outstanding for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a <u>"Shelf Registration")</u> and (ii) use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as practicable thereafter. For purposes hereof, <u>"Target Filing Date"</u> shall mean the date which is 20 days after the Company becomes qualified to register the offer and sale of securities under the Securities Act pursuant to a Shelf Registration Statement. If, after the filing of a Shelf Registration Statement, a holder of Registrable Securities requests registration under the Securities Act of additional Registrable Securities pursuant to such Shelf Registration, the Company shall amend such Shelf Registration Statement to cover such additional Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with the registration of the Registrable Securities, the Company shall provide to the Purchaser customary indemnification in connection with such registration, including with respect to liabilities under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Reports Under Exchange Act.</u> As soon as practicable after 180 days after the earlier of (i) the consummation of an ReIPO and (ii) the Registration Date, with a view to making available to the Purchaser the benefits of Rule 144 under the Securities Act and any other rule or regulation of the SEC that may at any time permit the Purchaser to sell securities of the Company to the public without registration or pursuant to a registration on Form F-3 or S-3, the Company shall: (a) make and keep available adequate current public information, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date of the registration statement filed by the Company for any ReIPO; (b) use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); (d) (i) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith upon request (A) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of Rule 144 under the Securities Act, the Securities Act, and the Exchange Act, or that it qualifies as a registrant whose securities may be resold pursuant to Form F-3 or S-3 (at any time after the Company so qualifies); and (B) such other information as may be reasonably requested in availing any Purchaser of any rule or regulation of the SEC that permits the selling of any such securities without registration, without qualification pursuant to a Canadian prospectus or pursuant to Form F-3 or S-3 (at any time after the Company so qualifies to use such form); and (ii) furnish to the Purchaser, so long as the Purchaser owns any Registrable Securities, forthwith, but in any event within five days following the receipt of a lawful and contractually permitted request therefor, unlegended share certificates in connection with sales of Registrable Securities by the Purchaser pursuant to Rule 144 under the Securities Act, or furnish to the Company's transfer agent an opinion of counsel that such unlegended share certificates may be issued.

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**ARTICLE V.**

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Fees and Expenses.</u> Each party shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery, and performance of this Agreement; provided, however, that the Company shall pay the reasonable and documented fees and expense of the Purchaser's Canadian legal counsel in connection with the transactions contemplated by this Agreement, up to a maximum of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Entire Agreement.</u> The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Notices.</u> Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (EST) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (EST) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by United States nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Amendments; Waivers.</u> Any amendments hereto or waivers in respect hereof shall only be effective if made in writing and executed by the parties thereto. No waiver shall constitute a waiver of any other provision or act as a continuing waiver unless such is expressly provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Headings.</u> The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Successors and Assigns.</u> This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>No Third-Party Beneficiaries.</u> This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Governing Law.</u> The Agreement shall be by and interpreted in accordance with the laws of the Province of Ontario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Survival.</u> The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Execution.</u> This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf' signature page were an original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Severability.</u> If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Saturdays, Sundays, Holidays, etc.</u> If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Construction.</u> The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and Common Shares in any Transaction Document shall be subject to adjustment for reverse and forward share splits, share dividends, share combinations and other similar transactions of the Common Shares that occur after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Currency.</u> All references to currency herein shall be deemed to refer to Canadian dollars.

*(Signature Pages Follow)*

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

**SOL STRATEGIES INC.**

By: <u> *(signed) "Leah Wald"*</u> <br> Name: Leah Wald <br> Title: Chief Executive Officer

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK <br>SIGNATURE PAGE FOR PURCHASER FOLLOWS]

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[PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Purchaser: <u>ParaFi Digital Opportunities LP, by ParaFi Capital LP, its investment manager</u> 

*Signature of Authorized Signatory of Purchaser: (signed) "Adrian Uberto"*

Name of Authorized Signatory: <u>Adrian Uberto</u> 

<br> Title of Authorized Signatory:<u> </u><u>Chief Operating Officer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<br> Email Address of Authorized Signatory: ***<u>[Redacted - Contact Information] &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>***

<br> Address for Notice to Purchaser:

c/o ParaFi Capital LP<br>***[Redacted - Contact Information]***<br> Email: ***[Redacted - Contact Information]***

Subscription Amount: $21,071,428.00 <br>Convertible Debenture Units: 21,071.428

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**Schedule 3.1(e)**

<u>Share Capital Summary</u>

The authorized share capital of the Company consists of an unlimited number of Common Shares, of which 150,169,520 Common Shares were issued and outstanding as of January 7, 2025. As of the date of this Agreement, the Company has 12,673,221 stock options and 563,669 restricted share units outstanding, each stock option and restricted share unit exercisable for or vesting into one Common Share.

The following persons hold the Common Shares listed below, which is a complete list of holders of 5.0% or more of the Common Shares as of the date of this Agreement:

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| | | |
|:---|:---|:---|
| **Name** | **Number of Common Shares Held** | **% of Common Shares**<br>**owned (undiluted)** |
| Antanas Guoga | 53923787 | 36.2 |
| *[Redacted - Commercially Sensitive Confidential Information]* | 9200000 | 6.2 |

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**EXHIBIT "A"**

**U.S. Accredited Investor Confirmation Certificate**

**(For U.S. Purchasers that are Institutional Accredited Investors)**

Reference made to the Securities Purchase Agreement by and among Sol Strategies Inc. (the "Company"), the undersigned (also referred to herein as the "Purchaser"), and certain other purchasers, for the purchase of certain Securities of Company (the "Agreement"). Terms not otherwise defined herein have the meanings ascribed to them in the Agreement.

The Purchaser understands and agrees that the Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any applicable securities laws of any state of the United States, and the Securities are being offered and sold by the Company to the Purchaser in reliance upon Rule 506(b) of Regulation D under the Securities Act ("Regulation D") and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States.

(A) Representations and Warranties. The undersigned represents, warrants and covenants (which representations, warranties and covenants shall survive the Closing) to the Company (and acknowledges that the Company is relying thereon) that the Purchaser is an Institutional Accredited Investor, and satisfies one or more of the categories indicated below (please initial on the appropriate line or lines), and is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Category 1. A bank, as defined in Section 3(a)(2) of the Securities Act, whether acting in its individual or fiduciary capacity; a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States *Securities Exchange Act of 1934;* an investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; an investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission under section 203(1) or (m) of the United States *Investment Advisers Act of 1940;* an insurance company as defined in Section 2(a)(13) of the Securities Act; an investment company registered under the United States *Investment Company Act of 1940;* a business development company as defined in Section 2(a)(48) of the United States *Investment Company Act of 1940;* a small business investment company licensed by the United States Small Business Administration under Section 301(c) or (d) of the United States *Small Business Investment Act of 1958;* a rural business investment company as defined in section 384A of the United States *Consolidated Farm and Rural Development Act;* a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of US$5,000,000; or an employee benefit plan within the meaning of the United States *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors as defined in Rule 501(a) of Regulation D ("Accredited Investor"); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Category 2. A private business development company as defined in Section 202(a)(22) of the United States *Investment Advisers Act of 1940;* or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Category 3. An organization described in Section 501(c)(3) of the United States *Internal Revenue Code,* a corporation, a Massachusetts or similar business trust, a partnership, or a limited liability company, not formed for the specific purpose of acquiring the Securities, with total assets in excess of US$5,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Category 7. A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Category 8. An entity in which all of the equity owners are Accredited Investors; or

*[If you checked Category 8, please indicate the name and category of Accredited Investor (by reference to the applicable subparagraph set forth in Rule 501(a) of Regulation D) of each equity owner:*

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| | |
|:---|:---|
| **Name of Equity Owner** | **Category of Accredited Investor** |

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*It is permissible to look through various forms of equity ownership to natural persons in determining the Accredited Investor status of entities under this category. If those natural persons are themselves Accredited Investors, and if all other equity owners of the entity seeking Accredited Investor status are Accredited Investors, then this category will be available.]*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Category 9. An entity, of a type not listed in Categories 1, 2, 3, 7 or 8, not formed for the specific purpose of acquiring the Securities, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the United States *Investment Company Act of 1940);*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Category 12. Any "family office," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940:* (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the Securities, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Category 13. A "family client," as defined in rule 202(a)(11)(G)-1 under the United States *Investment Advisers Act of 1940,* of a family office meeting the requirements set forth in Category 12 above and whose prospective investment in the Company is directed by such family office with the involvement of the Knowledgeable Family Office Administrator.

(B) Restrictions on Transferability of Securities. The undersigned realizes that the Securities and the Common Shares issuable upon exercise of the Warrants are not, and will not be, registered under the Securities Act, will be "restricted securities" as defined in Rule 144 thereunder, and the offer and sale of such Securities to it are being made in reliance upon Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States. The undersigned also understands that the Company has not agreed to register the Securities for distribution in accordance with the provisions of the Securities Act or any applicable state securities laws, that the Company has not agreed to comply with any exemption under the Securities Act or any such laws for the resale of the Securities, and that certain resale provisions of that regulation may not be available to the undersigned unless certain conditions are satisfied. Hence, the undersigned understands that, by virtue of the provisions of certain rules promulgated under the Securities Act and relating to "restricted securities," the Securities which the undersigned has subscribed for hereby may need to be held indefinitely, unless and until subsequently registered under the Securities Act and/or applicable state securities laws, or unless an exemption from registration is available, in which case the undersigned may still be limited with respect to the extent to which such Securities may be transferred, and that all certificates or statements evidencing such Securities shall bear, and be subject to the conditions of, the following legend(s), as applicable:

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**THE SECURITIES REPRESENTED HEREBY** ***[for Debentures, add:*** **AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF]** ***[for Warrants, add:*** **AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1)(I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

***[for Warrants add:*** **THE WARRANT REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."]**

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*provided,* that if, the Securities are being sold in compliance with the requirements of Rule 904 and in compliance with applicable local laws and regulations, and provided that the Securities were issued when the Company qualified as a "foreign issuer" (as defined in Rule 902(e) of Regulation S under the Securities Act), the legend may be removed by providing a customary declaration to the Company and to its transfer agent, in the form attached hereto as Appendix I or as may be reasonably required by the Company or the transfer agent;

*provided further,* if any of the Securities are being sold pursuant to Rule 144, if available, the legend shall be removed by delivering to the Company and the transfer agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent, to the effect that the legend is no longer required under applicable requirements of the Securities Act.

The undersigned agrees that by accepting the Securities it shall be representing and warranting that the representations and warranties above are true as at the Closing with the same force and effect as if they had been made by it at the Closing and that they shall survive the purchase by it of the Securities and shall continue in full force and effect notwithstanding any subsequent disposition by it of the Securities.

The foregoing representations and warranties are true and accurate as of the date of this U.S. Accredited Investor Confirmation Certificate and will be true and accurate as of the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants. If any such representations and warranties shall not be true and accurate prior to the Closing or as of the conversion of Debentures, the issuance of Interest Shares or exercise of Warrants, the Purchaser shall give immediate written notice of such fact to the Company and to the Placement Agent.

**DATED** as of January 8, 2025.

**PARAFI DIGITAL OPPORTUNITIES LP, by <br>PARAFI CAPITAL LP,** ***its investment manager***

&nbsp;&nbsp;&nbsp;&nbsp;<u>*(signed) "Adrian Uberto"*</u>

Name: Adrian Uberto

Title: Chief Operating Officer

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**Appendix I to Exhibit "A" - U.S. Accredited Investor Confirmation Certificate** <br>**Declarations for Removal of Legend**

**To: TSX Trust Company, as Registrar and Transfer Agent for the Common Shares of Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of __________________ (Securities), represented by the Issuer's certificate number ________________ , to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

By:   Date:   <br> Signature

Name   <br> (please print)

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**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer, _____________________________ (the "Seller"), dated **__________________________,** with regard to our sale, for such Seller's account, of the __________________________ (Securities), represented by certificate number ______________ of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

**Name of Firm**

By: _____________________________________ <br>Authorized Officer

Date: _____________________________________ <br>

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**EXHIBIT "B"** <br>(see attached)

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

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| | |
|:---|:---|
| **Certificate CD-2025-01** | **Principal Sum $27,500,000** |

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Dated and effective January [•], 2025

<u>**UNSECURED CONVERTIBLE DEBENTURE**</u>

**SOL STRATEGIES INC.**

**NOW THEREFORE** for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company hereby covenants, agrees and declares as follows:

**ARTICLE 1**<br> <u>**INTERPRETATION**</u>

1.1 <u>**Definitions.**</u> In this Debenture, including the preamble, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Attribution Parties"** means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - Take Over Bids and Issuer Bids

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Business Day"** means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"CDS"** means CDS Clearing and Depository Services Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Common Shares"** means the common shares of the Company as such shares are constituted on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Company"** means Sol Strategies Inc. and its legal successors and permitted assigns; "Conversion Date" has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Conversion Notice"** has the meaning ascribed to it in Section 4.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Conversion Price"** means the price per Common Share at which all or a portion of the Principal Sum outstanding under this Debenture shall from time to time be convertible into Common Shares pursuant to a Holder Conversion, being a price of $2.50 per Common Share, being a ratio of 400 Common Shares per $1,000.00 of Principal Sum, subject to certain adjustments as provided herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **"Convertible Securities"** means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Company or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **"CSE"** means Canadian Securities Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **"Current Market Price"** at any date means the VWAP of the Common Shares on the Principal Stock Exchange during the 20 consecutive Trading Days ending on the Trading Day immediately preceding such date, where the VWAP is determined by dividing the aggregate sale price of all Common Shares sold during that period by the total number of Common Shares sold during that period and, if no such prices are available, "Current Market Price" will be the Fair Market Value per Common Share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **"Debenture"** means this unsecured convertible debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **"Default Rate"** means the Interest Rate plus 5.0% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **"Directors"** means the persons who are the directors of the Company at the date of any event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Event of Default"** means any of the events specified in Section 6.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"Exchange Act"** means the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"Excluded Taxes"** means, with respect to the Holder or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder (each, a **"Recipient"),** (a) Taxes imposed on or measured by a Recipient's net income, capital Taxes and franchise Taxes imposed on a Recipient (in lieu of net income Taxes), in each case, (i) by the jurisdiction (or any political subdivision thereof) under the laws of which such Recipient is organized or in which its principal office is located, or (ii) as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax, (b) any branch profits Taxes or any similar Tax imposed by any jurisdiction described in clause (a) in which such Recipient is located, (c) Taxes imposed under FATCA, (d) any withholding Taxes imposed on a payment by or on account of any obligation of the Company hereunder: (i) to a person with whom the Company does not deal at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of making such payment or (ii) in respect of a debt or other obligation to pay an amount to a person with whom the Company is not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) at the time of such payment, (e) any Taxes imposed on a Recipient by reason of: (i) such Recipient being a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, (ii) such Recipient not dealing at arm's length (for the purposes of the *Income Tax Act* (Canada)) with a "specified shareholder" (as defined in subsection 18(5) of the *Income Tax Act* (Canada)) of the Company, or (iii) the Company being a "specified entity" (as defined in subsection 18.4(1) of the *Income Tax Act* (Canada)) in respect of such Recipient, and (f) any Taxes resulting from the assignment or transfer of the Debenture by the Holder to any person (other than the Company in accordance with the terms of this Indenture);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **"FATCA"** means Sections 1471 through 1474 of the IRC as of the date hereof (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 171(b)(1) of the IRC, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the IRC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **"Fair Market Value"** means the fair market value as determined by the Board, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Board and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **"Governmental Authority"** means: (a) any governmental or public department, central bank, court, minister, governor-in-council, cabinet, commission, tribunal, board, bureau, agency, commissioner or instrumentality, whether international, multinational, national, federal, provincial, state, county, municipal, local, or other; (b) any stock exchange; and (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **"Holder"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **"Holder Conversion"** has the meaning ascribed to it in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **"Indebtedness"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **"Indemnified Taxes"** means Taxes other than Excluded Taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **"Interest Rate"** means 2.5% *per annum;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **"Issue Date"** means the date of this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **"IRC"** means Internal Revenue Code of 1986 of the United States of America, as amended;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **"Material Adverse Effect"** means the effect resulting from any event, change, circumstance, fact or state of being which, singly or in the aggregate with other events, changes, circumstances, facts or states of being, could reasonably be expected to have a significant and adverse effect on (w) the business, affairs, capital, liabilities (absolute, accrued, contingent or otherwise), obligations, condition (financial or otherwise), properties, permits, contractual arrangements, operations, results of operations or assets (including assets in which the Company has a direct or indirect economic interest) or prospects of the Company and its subsidiaries, as a whole, (x) the legality, validity or enforceability of this Debenture; (y) the ability of the Company to exercise its rights or perform its obligations under this Debenture; or (z) the rights or remedies of the Holder under this Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **"Maturity Date"** has the meaning ascribed to it in Section 2.1 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **"Other Taxes"** means any and all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, the Debenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **"person"** means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **"Principal Stock Exchange"** means the CSE, and if the Common Shares are not listed on the CSE but are listed on another stock exchange or stock exchanges in Canada, references to the Principal Stock Exchange will be deemed to be references to such other stock exchange or, if more than one, to the one on which the greatest volume of Common Shares regularly trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **"Principal Sum"** has the meaning ascribed to it in Section 2.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **"Tax" or "Taxes"** means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any applicable Governmental Authority, and including any interest and penalties thereon or with respect to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **"Trading Day"** means a day on which the Principal Stock Exchange is open for the transaction of business and Common Shares have traded;

**"U.S. Holder"** means a Holder or a purchaser of Debentures who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the Securities Purchase Agreement, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Debentures for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **"U.S. Person"** means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) **"U.S. Securities Act"** means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **"United States"** means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **"VWAP"** means volume weighted average trading price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) this **"Debenture",** the **"Debenture"**, **"herein"**, **"hereby"**, **"hereof'**, **"hereto"**, **"hereunder"** and similar expressions mean or refer to this convertible unsecured Debenture and any debenture, deed or instrument supplemental or ancillary thereto and any schedules hereto or thereto and not to any particular article, section, subsection, clause, subclause or other portion hereof; the **"Debentures"** means this Debenture together with all others, being part of a series of like debentures except as to principal amount thereof.

1.2 <u>**Plurals and Gender.**</u> Whenever used in this Debenture, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" (and similar phrases) shall be deemed to mean "including, without limitation".

1.3 <u>**Numbering of Articles, etc.**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, sub-clause or schedule refers to the article, section, subsection, clause, sub-clause or schedule bearing that number or letter in this Debenture.

1.4 <u>**Day not a Business Day.**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be taken on the next Business Day following the day on which such action was to be taken. If the payment of any amount is deferred for any period, then such period shall be included for purposes of the computation of any interest payable hereunder.

1.5 <u>**Computation of Time Period.**</u> Except to the extent otherwise provided herein, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding".

1.6 <u>**Currency.**</u> All references to dollars or to "$" shall be references to Canadian dollars unless otherwise specified.

1.7 <u>**Securities Purchase Agreement.**</u> The Debentures have been issued pursuant to a securities purchase agreement between the Company and the Holder dated January 8, 2025 (the **"Securities Purchase Agreement"**), and are subject in all respects to the terms of the Securities Purchase Agreement. This Debenture incorporates the terms of the Securities Purchase Agreement and in the event of a conflict between the terms of this Debenture and the terms of the Securities Purchase Agreement, the terms of the Securities Purchase Agreement will govern.

1.8 <u>**Schedules.**</u> The Schedules annexed hereto will, for all purposes, form an integral part of this Debenture.

1.9 <u>**Statutory References.**</u> Any reference to a statute shall mean the statute in force as at the date of this Debenture, together with all rules and regulations promulgated thereunder (including any instrument of each of Canada's provincial and territorial securities regulators and securities regulatory authorities), as the same may be amended, re-enacted, consolidated or replaced from time to time, and any successor statute thereto, unless otherwise expressly provided.

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**ARTICLE 2**<br> <u>**PROMISE TO PAY**</u>

2.1 <u>**Indebtedness.**</u> The Company, for value received, and in consideration of the premises contained herein hereby acknowledges itself indebted and promises and covenants to pay to [•], the registered holder of the Debenture (the **"Holder"):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate principal sum of $27,500,000 (the **"Principal Sum")** on January [•], 2030 (the **"Maturity Date"),** subject to the reduction of such Principal Sum from time to time upon the exercise of the conversion rights set out in Article 4 hereof, or on such earlier date as the Principal Sum may become due in accordance with the provisions hereof, at the principal office of the Company in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) interest on any monies owing by the Company to the Holder hereunder, as specifically calculated under Section 3.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all other monies, Additional Amounts, fees, costs, expenses, liabilities or other obligations, whether before or after maturity or default, which may be owing by the Company to the Holder pursuant to this Debenture or the Securities Purchase Agreement;

(collectively, the **"Indebtedness").**

2.2 <u>**Payment on Maturity.**</u> The Company shall pay in cash on the Maturity Date the outstanding Indebtedness owing to the Holder in full unless the Company has received from the Holder a Conversion Notice pursuant to Section 4.1 hereof. For greater certainty, the Company shall not be permitted to prepay any portion of the Principal prior to the Maturity Date other than with the prior written consent of the Holder.

2.3 <u>**Additional Amounts.**</u> Any payments made by or on behalf of the Company under or with respect to the Debenture will be made free and clear of and without withholding or deduction for or on account of any present or future Tax or other governmental charge, unless the Company or any other payor is required to withhold or deduct such Taxes by applicable law or by the interpretation or administration thereof by the relevant Governmental Authority. If the Company is required to withhold or deduct any amount for or on account of Taxes from any payment made under or with respect to the Debenture (including for greater certainty, the delivery of Common Shares or other property in connection with the exercise of a conversion right or otherwise), then, with respect to Indemnified Taxes (including Other Taxes), the Company will pay to the Holder such additional amounts **(the "Additional Amounts")** as may be necessary so that the net amount received (including Additional Amounts) by the Holder after such withholding or deduction (including any withholding or deduction required to be made in respect of any Additional Amounts) will not be less than the amount the Holder would have received (including for greater certainty, the full amount of any Common Shares or other property to which the Holder is entitled under the Debenture in connection with the exercise of a conversion right, payment on Maturity or otherwise) if such Indemnified Taxes (including Other Taxes) had not been withheld or deducted. The Company will make all withholdings or deductions required by applicable law and will remit the full amount withheld or deducted to the relevant Governmental Authority as and when required by applicable law and as soon as practicable thereafter will deliver to the Holder the original or certified copy of a receipt issued by such Governmental Authority evidencing such payment or other evidence of such payment reasonably satisfactory to the Holder. The Company shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. To the extent that withholdings or deductions apply to any payment to be made to the Holder, if the Holder is entitled to an exemption from or reduction in the rate of any withholding Tax with respect to any payments hereunder, the Holder shall deliver to the Company, at the time or times reasonably requested by the Company and at the time or times prescribed by applicable law, such properly completed and executed documentation reasonably requested by the Company or prescribed by applicable law as will permit such payments to be made without withholding (including FATCA withholding, if applicable) or at a reduced rate of withholding. In addition, the Holder, if requested by the Company, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company as will enable the Company to determine whether or not such Holder is subject to withholding, backup withholding or information reporting requirements, provided that no Holder shall be required to deliver any documentation pursuant to this Section 2.3 that such Holder is not legally able to deliver. Notwithstanding anything herein to the contrary, this Section 2.3 and the obligations thereunder will survive the repayment of this Debenture and the termination of this Debenture.

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2.4 <u>**Ownership Cap.**</u> Notwithstanding anything to the contrary contained herein, the Company shall not issue any Common Shares to the Holder, and any such issuance shall be null and void ab initio, to the extent that immediately prior to or following such issuance, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids,* in excess of 9.98% (as adjusted from time to time in accordance with the last sentence of this Section 2.4, the **"Ownership Cap"**) of the Common Shares that would be issued and outstanding following such conversion. For purposes of calculating beneficial ownership for determining whether the Ownership Cap is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon conversion of this Debenture with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) conversion of the remaining, unconverted Debenture held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 2.4, beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of this Debenture, in determining the number of outstanding Common Shares, the Holder of this Debenture may rely on the number of outstanding Common Shares as reflected in (1) the Company's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the **"Reported Outstanding Share Number"**). For any reason at any time, upon the written or oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Company the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting a Conversion Notice for the relevant Debentures. If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 2.4, to exceed the Ownership Cap, the Holder must notify the Company of a reduced number of Debenture Shares to be purchased pursuant to such Conversion Notice (the number of shares by which such purchase is reduced, the **"Reduction Shares"**) and (ii) as soon as reasonably practicable, the Company shall return to the Holder any Conversion Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Ownership Cap to any other percentage not in excess of 19.98% specified in such notice; provided that any increase in the Ownership Cap will not be effective until the 61st day after such notice is delivered to the Company and shall not negatively affect any partial conversion effected prior to such change.

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2.5 <u>**Non-Transferable.**</u> Subject to compliance with applicable law, including securities law, this Debenture may be assigned or transferred by the Holder provided that, notwithstanding Section 2.3, the Company shall not be liable for any additional costs that may be associated or incurred in connection with the assignment or transfer to any person (other than the Company in accordance with the terms of this Debenture) including without limitation, any withholding Taxes, without any prior consent from the Company, provided the Holder shall provide such information regarding the transaction and the transferee as the Company may reasonably request.

2.6 <u>**Voluntary Redemption.**</u> Subject to compliance with applicable law, including securities law, all, but not less than all, of the Debenture may be redeemed at the option of the Company, at any time and from time to time after the third anniversary of the Issue Date upon not less than 30 days prior written notice to the Holder at a redemption price equal to 112% of the principal amount of the Debenture to be redeemed, plus all accrued and unpaid interest thereon up to and including the date of redemption, all of which shall be payable in cash.

**ARTICLE 3** <br><u>**INTEREST**</u>

3.1 <u>**Calculation of Interest.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Principal Sum shall, subject to Section 3.1(b), bear interest both before and after maturity, default and judgment, from and including the Issue Date to the date of repayment in full, or conversion, at the Interest Rate per annum (based on a year of 360 days composed of twelve 30-day months), payable in cash or at the election of the Company (but subject to the Ownership Cap), in freely tradeable Common Shares at six month intervals. For greater certainty, interest payments (the **"Interest Payments"**) will be due and payable on January [•] and July [•] of each year and on the Maturity Date (each, an **"Interest Payment Date"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 3.1(a), the Principal Sum outstanding will bear interest from and after the occurrence of an Event of Default which is continuing at the Default Rate. For so long as an Event of Default has occurred and is continuing, such interest shall be calculated and be payable in cash semi-annually in arrears on each Interest Payment Date, with interest on overdue interest at the same rate, and compounded semi-annually until paid; provided, however, any accrued and unpaid interest in respect of the period prior to the Event of Default shall remain calculated at the interest rate specified under Section 3.1(a) but, after the Event of Default, the interest on such overdue interest shall be calculated at the Default Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of the *Interest Act* (Canada), whenever any interest or fee under this Debenture is calculated using a rate based on a number of days less than a full year, such rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (i) the applicable rate, (ii) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (iii) divided by the number of days based on which such rate is calculated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) When interest is payable in Common Shares, the number of Common Shares to be issued shall be determined by the quotient obtained by dividing *(x)* by *(y),* where *(x)* is equal to the interest accrued on the Debenture from the Issue Date or the most recent Interest Payment Date, as applicable, to the applicable Interest Payment Date and *(y)* is equal to the Current Market Price, calculated up to the Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As promptly as possible after the Interest Payment Date, if interest has been paid by Common Shares, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified by the Holder for that number of Common Shares deliverable pursuant to the payment of interest on the applicable Interest Payment Date. Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share payable on any Interest Payment Date. Any fractions will be rounded down to the nearest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the payment of interest pursuant to this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such payments, if applicable.

**ARTICLE 4**<br> <u>**CONVERSION OF DEBENTURE**</u>

**4.1** <u>**Conversion.**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the Ownership Cap, the Holder may, at its election, upon surrender (either in person, by mail (postage prepaid) or other means of delivery) of this Debenture along with a completed notice of conversion in the form attached hereto as Schedule "A" (the **"Conversion Notice"**) at the principal office of the Company in Toronto, Ontario at any time and from time to time following the Issue Date and prior to the close of business on the Maturity Date, convert all or portions of the outstanding Principal Sum from time to time (the **"Conversion Date"**) at the Conversion Price (**"Holder Conversion"**), in increments of $1,000.00, unless there is less than $1,000.00 of the Principal Sum then outstanding (in which case the balance of the outstanding Principal Sum shall be convertible). The delivery of the Conversion Notice duly executed by the Holder and the surrender of this Debenture shall be deemed to constitute a valid and enforceable contract between the Holder and the Company whereby (i) the Holder subscribes for the number of Common Shares which the Holder shall be entitled to receive upon such Holder Conversion, (ii) the Holder releases the Company from all liability thereon or from all liability with respect to the portion of the Principal Sum converted, as the case may be, and (iii) the Company agrees that the surrender of this Debenture for Holder Conversion constitutes full payment of the subscription price for the Common Shares issuable on such Holder Conversion. **To effect conversions hereunder, the Holder shall be required to physically surrender the Debenture to the Company.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As promptly as possible after receipt of the Conversion Notice and this Debenture, but subject to Section 4.5 hereof, the Company shall issue or cause to be issued a certificate, direct registration statement or entry into the CDS system in the name or names of the person or persons specified in the Conversion Notice for that number of Common Shares deliverable upon the Holder Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If converted prior to the date that is 4 months and a day after the date hereof, the Holder acknowledges and agrees that a legend may be placed on the certificates, DRS Statements or CDS Position representing the Common Shares to the effect that the securities represented by such certificates, DRS Statements or CDS Position are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The number of Conversion Shares issuable upon any conversion shall be determined by the quotient obtained by dividing *(x)* by *(y)* where *(x)* is equal to the aggregate amount of the outstanding Principal Sum to be converted as of the Conversion Date and *(y)* is the Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon completion of the Holder Conversion, the rights of the Holder to receive, in respect of the amount hereof so converted, the portion of the Principal Sum so converted shall cease and the Holder or the other person or persons in whose name or names any Common Shares shall be issuable upon such Holder Conversion shall be deemed to have become on the Conversion Date the holder or holders of record of such Common Shares represented thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that only a portion of the Principal Sum is subject to Holder Conversion, the Holder will be entitled to receive a replacement Debenture representing the Principal Sum not subject to Holder Conversion on the same terms and provisions contained herein.

4.2 <u>**Adjustment of Conversion Price.**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If and whenever the Company shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Conversion Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 4.2(a) or Section 4.2(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of any merger, amalgamation, arrangement or other form of business combination of the Company with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Article 4 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Article 4 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the conversion of any Debenture. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If and whenever the Company shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Company of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder converts any Debenture, in whole or in part); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 4.2(a) or Section 4.2(b) (any such events being herein called a **"Special Distribution"**), the Conversion Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Company sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) less than the Conversion Price applicable as of such record date, then the Conversion Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Conversion Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if the record date had not been fixed or the Conversion Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Company fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Conversion Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Conversion Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect if such record date had not been fixed.

4.3 <u>**Conversion Rights Adjustment Rules.**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 4.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Company, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 4.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 4.2 results in a decrease of the Conversion Price taking effect immediately after the record date for a specific event, if any portion of this Debenture is converted after that record date and prior to completion of the event, the Company may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Conversion Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Conversion Price on the exercise date adjusted for completion of that event. The Company shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Company after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 4.2, which in the opinion of the Board, acting reasonably, would materially affect the conversion rights of the Holder, the Conversion Price shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Company in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Company affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 4.2 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 4.2 or this Section 4.3, no adjustment shall be made which would result in any increase in the Conversion Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Conversion Price will be made in respect of any event described in Section 4.2 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had converted the entire Principal Sum of this Debenture immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Conversion Price will be made pursuant to Section 4.2 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Debenture or Convertible Securities existing as of the issue date of this Debenture; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Company outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Conversion Price or the number of Common Shares issuable upon the conversion of this Debenture, such disputes shall be conclusively determined by the auditors of the Company or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 4.2 hereof and shall be binding upon the Company and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of this Debenture hereunder require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Company shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Conversion Price will be required by reason of the setting of such record date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Article 4 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by this Article 4, whether in its capacity as a shareholder (if applicable), as a Holder of this Debenture or otherwise.

4.4 <u>**No Fractional Common Shares.**</u> Notwithstanding anything herein contained, the Company shall in no case be required to issue fractional Common Shares or to pay any cash adjustment in lieu of any fractional Common Share upon the conversion of this Debenture. Any fractions will be rounded down to the nearest whole number.

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4.5 <u>**Certificate as to Adjustment.**</u> The Company shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Conversion Price as provided in Section 4.3, deliver a certificate of the Company to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

4.6 <u>**Notice of Certain Matter.**</u> The Company shall give notice to the Holder, in the manner provided in Article 12, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 4.3 that may give rise to an adjustment in the Conversion Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

4.7 <u>**Reservation of Common Shares.**</u> The Company shall at all times while the Debenture remains outstanding, reserve and keep available out of its authorized but unissued share capital, for the purpose of effecting the conversion of this Debenture, such number of Common Shares as shall from time to time be sufficient to effect such conversions.

4.8 <u>**Replacement of Debenture.**</u> If this Debenture becomes mutilated or lost, stolen or destroyed, the Company shall issue to the Holder a new Debenture upon surrender and cancellation of the mutilated Debenture, or, in the case of a lost, stolen or destroyed Debenture, upon the Holder furnishing to the Company such evidence of such loss, theft or destruction as will be satisfactory to the Company, acting reasonably, together with an indemnity in an amount and form satisfactory to the Company, acting reasonably. The Holder shall pay all reasonable out-of-pocket expenses incidental to the issuance of any such replacement Debenture.

**ARTICLE 5**

<u>**COVENANTS OF THE COMPANY**</u>

5.1 <u>**Payment Obligations.**</u> The Company shall duly and punctually pay all Indebtedness to the Holder promptly when owed by it hereunder.

5.2 <u>**Performance of Covenants.**</u> The Company shall promptly perform and satisfy all covenants and obligations to be performed by it under this Debenture at the times and places and in the manner provided for herein.

5.3 <u>**Maintain Corporate Existence.**</u> The Company shall maintain its corporate existence, and preserve its rights, powers, licenses and privileges which are necessary or material to the conduct of its business.

5.4 <u>**Maintain Books and Records.**</u> The Company shall keep accurate records and books of account in which complete entries will be made reflecting all financial transactions and prepare its financial statements in accordance with generally accepted accounting principles.

5.5 <u>**Payment of Taxes.**</u> The Company shall pay and discharge promptly all Taxes assessed or imposed upon it, its subsidiaries or their respective property as and when the same become due and payable, save and except where it contests in good faith the validity thereof by proper legal proceedings, and the Company shall file when due all Tax returns required to be filed by the Company and its subsidiaries.

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5.6 <u>**No Change to Constating Documents.**</u> The Company shall not amend its constating documents in any manner that would be prejudicial to the Holder.

5.7 <u>**Conduct of Business.**</u> The Company shall conduct its business in such a manner so as to: (i) comply in all material respects with all applicable law, (ii) so as to observe and perform in all respects all its obligations under leases, licences and agreements, and (iii) so as to preserve and protect its property and assets and the earnings, income and profits therefrom, except, in each case, where failure to do so would not reasonably be expected to have a Material Adverse Effect. The Corporation shall obtain and maintain, all licenses, permits, government approvals, franchises, authorizations and other rights necessary for the operation of its business except where failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.8 <u>**Notice of Event of Default.**</u> The Company shall promptly, and in any event within five (5) Business Days after a responsible officer of the Company becoming aware, give notice to the Holder of the existence of any Event of Default.

5.9 Share Capital. The Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cause the Common Shares issuable in connection with any Holder Conversion or Interest Payment to be duly issued and delivered in accordance with the terms hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ensure that all Common Shares which shall be issued in connection with any Holder Conversion be issued as fully paid and non-assessable.

5.10 <u>**Regulatory Approvals.**</u> The Company shall use commercially reasonable efforts to forthwith obtain such regulatory approvals as may be necessary for the Common Shares issued in connection with any Holder Conversion and any Interest Payment to be approved for listing on the CSE.

5.11 <u>**Exchange Listing.**</u> The Company shall use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE during the term of this Debenture.

5.12 <u>**Financial Reporting.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall furnish the Holder with the following documents, statements and reports (by email in pdf format):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u> <u>Quarterly Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the first three fiscal quarters of each fiscal year of the Company, the unaudited balance sheet of the Company as of the close of such fiscal quarter and unaudited statements of income and expense and changes in financial position from the beginning of the then-current fiscal year to the close of such fiscal quarter, prepared in accordance with IFRS (subject to normal year-end audit adjustments) (including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> <u>Annual Financial Statements.</u> As soon as available but in no event later than the *Securities Act* (Ontario) or NI 51-102 would require such information to be filed on SEDAR+ for the fiscal year of the Company, financial statements of the Company consisting of a balance sheet as of the end of such fiscal year and a statement of income and expense and changes in financial position for such fiscal year (including any footnotes thereto), prepared in accordance with IFRS (and including principles of consolidation where appropriate) in each case applied on a basis consistent with those used in the preparation of the latest financial statements furnished by the Company and certified by such independent chartered professional accountants of recognized international standing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Delivery.</u> All reports and financial information required to be delivered under clauses (i) and (ii) shall be deemed to be delivered if the Company files or furnishes such report or information in accordance with Canadian securities laws with SEDAR+.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> <u>Compliance Certificate.</u> All financial information delivered (or deemed delivered) under clauses (i) and (ii) shall be accompanied by a certificate of a senior officer of the Company certifying that no default or Event of Default has occurred and is continuing as of the date of such delivery or deemed delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> <u>Other Information.</u> The Holder from time to time may request any other reasonable information concerning the Company (or any Subsidiary of the Company), with such information to be provided as promptly as reasonably possible.

5.13 <u>**Use of Proceeds.**</u> The funds advanced under this Debenture shall be used by the Company for general working capital purposes.

5.14 <u>**Reporting Issuer.**</u> The Company shall use its commercially reasonable efforts to maintain its status as a "reporting issuer" in each applicable jurisdiction and the Company shall comply with all applicable securities legislation, provided that the covenant to remain a "reporting issuer" shall not apply to any merger, amalgamation, arrangement, take-over bid, going private transaction or other similar transaction involving the purchase or sale of all of the outstanding Common Shares.

5.15 <u>**Corporate Existence.**</u> The Company hereby covenants and agrees with the Holder that, until all credit obligations, which includes present and future indebtedness, liabilities and obligations of the Company to the Holder under the Debenture have been repaid in full and this Debenture has either been terminated or the entire Principal Sum of this Debenture has been fully (and not partially) converted into Common Shares at the option of the Holder in accordance with its terms, the Company shall not take part in any consolidation, plan of arrangement, amalgamation, merger, winding-up, dissolution, capital or corporate reorganization or similar proceeding or arrangement, unless: (i) the corporation formed by or surviving any such proceeding or arrangement is a corporation incorporated under the original jurisdiction of formation or the laws of Canada or any province thereof (such corporation being herein referred to as the **"Successor Entity"**); (ii) the Successor Entity is of comparable or better creditworthiness relative to the Company; (iii) the Successor Entity expressly assumes all the credit obligations as stated in this section pursuant to an instrument in form and substance satisfactory to the Holder, acting reasonably; (iv) no default or Event of Default is then existing or would result from the consummation of such proceeding or arrangement; (v) the provisions of Article 4, as applicable, have been complied with; and (vi) the Successor Entity delivers to the Holder an officer's certificate, in form and substance reasonably satisfactory to the Holder, acting reasonably, with respect to the instrument delivered pursuant to clause (iii) above.

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**ARTICLE 6** <br><u>**DEFAULT**</u>

6.1 <u>**Acceleration of Maturity on Default.**</u> Upon the happening of any one or more of the following events (herein referred to as **"Events of Default"**) namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Company does not pay when due the Indebtedness or other amount payable by it under this Debenture at the place and in the currency in which such amount is expressed to be payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company fails to issue the Common Shares in respect of any duly completed Holder Conversion, if such failure continues for a period of ten (10) Business Days from the Conversion Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Company fails to observe or defaults under any covenant or agreement of the Company set out in this Debenture or the Securities Purchase Agreement or any representation or warranty made by the Company in the Securities Purchase Agreement proves to be untrue in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if all or substantially all of the assets of the Company used to carry on its business are lost or destroyed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any event occurs or series of events occur which individually or together has a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the Company makes a general assignment for the benefit of creditors; or any proceeding is instituted by it seeking relief as debtor, or to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or for an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver or trustee, or other similar official for it or for any substantial part of its properties or assets; or any corporate or partnership action is taken to authorize any of the actions referred to in this Subsection 6.1(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if any proceedings are instituted against the Company seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition of it or its debts or an order for similar relief under any law relating to bankruptcy, insolvency, reorganization or relief of debtors (including under any statutes relating to the incorporation of companies) or seeking appointment of a receiver, trustee or other similar official for it or for any substantial part of its properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any proceedings with respect to the Company are commenced under the *Companies' Creditors Arrangement Act* (Canada); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Company takes any corporate proceedings for its dissolution, liquidation or if the corporate existence of the Company shall be terminated by expiration, forfeiture or otherwise, or if the Company ceases or threatens to cease, to carry on all or a substantial part of its business;

then in each and every such event, the amount of the Indebtedness shall forthwith become immediately due and payable to the Holder, anything herein contained to the contrary notwithstanding, and the Company shall forthwith pay to the Holder the amount of the Indebtedness and all other monies payable under the provisions hereof from the date of the said Event of Default until payment is received by the Holder, and any monies so received by the Holder shall be applied first to amounts other than interest and the Principal Sum, second to interest, and third to the Principal Sum.

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6.2 <u>**Waiver of Company's Rights.**</u> To the full extent that it may lawfully do so, the Company for itself and its successors and assigns hereby waives and disclaims any benefit of, and shall not have or assert any right under, any statute or rule of law pertaining to the marshalling of assets, discussion, division or other matter whatever, to defeat, reduce or affect the rights of the Holder under the terms of this Debenture. Without limiting the generality of the foregoing, the Company waives every defence based upon any or all indulgences that may be granted by the Holder. Presentment, notice of dishonour, protest and notice of protest hereof are hereby waived.

**ARTICLE 7**

<u>**U.S. RESTRICTIONS**</u>

7.1 <u>**U.S. Registration.**</u> This Debenture and the Common Shares issuable upon conversion hereof have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States. This Debenture and the underlying Common Shares may only be offered and sold to a U.S. Person or a person in the United States pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

7.2 <u>**U.S. Restrictions on Transfer.**</u> This Debenture and the Common Shares issuable upon conversion hereof may only be transferred by the U.S. Holder pursuant to the restrictions on transfer described in Exhibit "A" to the Securities Purchase Agreement, as applicable to the U.S. Holder.

**ARTICLE 8** <br><u>**WAIVER**</u>

8.1 <u>**Waiver.**</u> The Holder may waive any breach of any of the provisions contained in this Debenture or any default by the Company in the observance or performance of any covenant, condition or obligation required to be observed or performed by it under the terms of this Debenture. No waiver, consent, act or omission by the Holder shall extend to or be taken in any manner whatsoever to affect any other or subsequent breach or default or the rights resulting therefrom and no waiver or consent by the Holder shall bind the Holder unless it is in writing. The inspection or approval by the Holder of any document or matter or thing done by the Company shall not be deemed to be a warranty or holding out of the adequacy, effectiveness, validity or binding effect of such document, matter or thing or a waiver of the Company's obligations.

**ARTICLE 9**

<u>**OTHER RIGHTS OF THE HOLDER**</u>

9.1 <u>**Rights of Set-Off.**</u> The Company acknowledges and agrees that the Indebtedness and the other obligations hereunder shall be paid, satisfied and discharged to the Holder without regard to such dealings as may from time to time occur as between any one or more of the Holder, the Company and any other person and without regard to such equities or rights of set-off or counterclaim which may from time to time exist between any one or more of the Holder, the Company or any other person, and that the Indebtedness and other obligations hereof shall be paid without regard to any equities between the Company and the Holder hereof or any set-off or cross-claims and the receipt of the Holder for the payment of the Indebtedness will be a good discharge to the Company in respect thereof.

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9.2 **<u>No Merger.</u>** Neither the taking of any judgement nor the exercise of any rights hereunder shall operate to extinguish the obligation of the Company to pay the monies owing under this Debenture and shall not operate as a merger of any covenant in this Debenture, and the acceptance of any payment shall not constitute or create a novation, and the taking of a judgement or judgements under a covenant herein contained shall not operate as a merger of those covenants and affect the Holder's right to interest under this Debenture.

**ARTICLE 10**

<u>**ADMINISTRATIVE PROVISIONS**</u>

10.1 <u>**Registered Holders.**</u> The person in whose name this Debenture shall be registered shall be deemed and regarded as the owner and holder hereof for all purposes, and the payment to and/or receipt of any Holder for any Indebtedness shall be a good discharge of the Company for the same, and the Company shall not be bound to enter in the register notice of any trust or to enquire into the title of any Holder or to recognize any trust or equity affecting the title hereof save as ordered by some court of competent jurisdiction or as required by statute.

**ARTICLE 11**

<u>**MISCELLANEOUS**</u>

11.1 <u>**Consent.**</u> Where a provision of this Debenture requires an approval or consent by a party to this Debenture and written notification of such approval or consent is not delivered within the applicable time in accordance with this Debenture, then the party whose consent or approval is required shall be conclusively deemed to have withheld its approval or consent.

11.2 <u>**Holder May Remedy Default.**</u> If the Company fails to do anything hereby required to be done by it, the Holder may, but will not be obliged to, do such thing and all reasonable sums thereby expended by the Holder shall be payable forthwith by the Company, but no such performance by the Holder shall be deemed to relieve the Company from any default hereunder.

11.3 <u>**Adjustment of Interest.**</u> Notwithstanding any provision to the contrary contained in this Debenture, in no event will the aggregate "interest" (as defined in Section 347 of the *Criminal Code* (Canada)) payable under this Debenture exceed the effective annual rate of interest on the "credit advanced" (as defined in that Section) under this Debenture lawfully permitted under that Section and, if any payment, collection or demand pursuant to this Debenture in respect of "interest" (as defined in that Section) is determined to be contrary to the provision of that Section, such payment, collection or demand will be deemed to have been made by mutual mistake of the Company and the Holder and the amount of such payment or collection will be refunded to the Company; for purposes of this Debenture the effective annual rate of interest will be determined in accordance with generally accepted actuarial practices and principles over the term of this Debenture on the basis of annual compounding of the lawfully permitted rate of interest and, in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Holder shall be conclusive for the purposes of such determination, in the absence of evidence to the contrary.

11.4 <u>**Indemnification.**</u> The Company agrees to indemnify the Holder from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits and reasonable costs, expenses or disbursements (except by reason of the fraud, wilful misconduct or gross negligence of the Holder or any of its employees or a material breach by the Holder of any of its covenants contained herein) which may be imposed on, incurred by, or asserted against the Holder in connection with this Debenture and arising by reason of a breach of any representation and warranty of the Company contained in this Debenture, any action (including any action referred to herein) or inaction or omission to do any act legally required of the Company under this Debenture. In addition to the foregoing, the Company agrees to reimburse the Holder for all reasonable and documented legal or other expense incurred in connection with investigating, defending or participating in any action or other proceeding relating to any such losses or liabilities. Notwithstanding anything to the contrary contained herein, nothing in this provision shall be construed to limit or reduce the Company's obligations under Section 6.1.

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11.5 **<u>Remedies.</u>** The parties acknowledge and agree that an award of money damages may be inadequate for any breach of this Debenture and any such breach could cause the non- breaching party irreparable harm. Accordingly, the parties agree that, in the event of any breach or threatened breach of this Debenture by one of the parties, the non-breaching party will also be entitled, without the requirement of posting a bond or other security, to seek equitable relief, including injunctive relief and specific performance. Such remedies will not be the exclusive remedies for any breach of this Debenture but will be in addition to all other remedies available at law or equity to each of the parties.

11.6 <u>**Expenses.**</u> Except as otherwise expressly provided herein or in the Securities Purchase Agreement, each party to this Debenture shall pay its respective legal, accounting and other professional advisory fees, costs and expenses incurred in connection with the negotiation, preparation or execution of this Debenture and all documents and instruments executed or delivered pursuant to this Debenture.

11.7 <u>**Public Notice.**</u> All public notices to third parties and all other publicity concerning the matters contemplated by this Debenture shall be jointly planned and coordinated by the Company and the Holder, each acting reasonably, and neither the Company nor the Holder shall act unilaterally in this regard without the prior written approval of the other party, except to the extent that the party making such notice is required to do so by applicable laws in circumstances where prior consultation with the other party is not practicable, provided concurrent notice to the other party is provided. Notwithstanding the foregoing, the Company may comply with its obligations under applicable securities laws without such consultation or approval where required.

11.8 <u>**Amendment.**</u> This Debenture may not be amended other than as agreed upon in writing between the Company and the Holder.

11.9 <u>**Assignment.**</u> Except in compliance with Section 5.15, the Company may not assign any rights and benefits or obligations under this Debenture without the prior written consent of the Holder.

11.10 <u>**Governing Law.**</u> This Debenture shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario. The Company hereby irrevocably attorns to the jurisdiction of the Courts of the Province of Ontario.

11.1 <u>**Severability.**</u> If any provision in this Debenture is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Debenture shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Debenture so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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11.12 <u>**Headings.**</u> The headings of the articles, sections, subsections and clauses of this Debenture have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Debenture.

11.13 <u>**Binding Effect.**</u> This Debenture and all of its provisions shall enure to the benefit of the Holder, its successors and assigns, and shall be binding upon the Company and its successors and permitted assigns. The expression the "Holder" as used herein shall include the Holder's assigns whether immediate or derivative.

11.14 <u>**Confidentiality.**</u> The Company shall not, and shall use its reasonable best efforts to ensure that its representatives will not, disclose the identity of the Holder to any third party, or otherwise identify the Holder as an investor in the Company, including in any public disclosure documents, regulatory filings, public statements, press releases and investor presentations, except (i) with the consent of the Holder, (ii) to the extent required to ensure compliance with applicable laws, including the filing of a Form 45-106F1 in connection with the issuance of the Debenture to the Holder, or (iii) to the Company's representatives on an as-needed basis; provided that such representatives are subject to confidentiality obligations at least as stringent as those applicable to the Company herein. The Company agrees to advise each of its representatives as to the confidential nature of the investment by the Holder and the holding by the Holder of securities of the Company. This covenant shall survive until the Holder no longer, directly or indirectly, owns the Debenture and/or the Common Shares.

**ARTICLE 12** <br><u>**NOTICE**</u> 

12.1 <u>**Notices.**</u> Any notice required or permitted to be given under any of this Debenture or any tender or delivery of documents may be given by personal delivery or by facsimile or electronic transmission to the parties at the following addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Holder at:<br>Address: ____________________________________________________________________________<br> ____________________________________________________________________________

Attention: <br>Email: ____________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Company at:

Sol Strategies Inc.

217 Queen Street West, Suite 401

Toronto, ON M5V 0R2

Attention: Leah Wald

Email: ***[Redacted - Contact Information]***

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Any notice or delivery shall be given as herein provided or to such other addresses or email or telecopier number or in care of such other person as a party may from time to time advise by notice in writing as aforesaid. The date of receipt of such notice or delivery shall be the date of actual delivery to the address specified if delivered or the date of actual transmission to the email or telecopier number if emailed or telecopied, unless such date is not a Business Day, in which event the date of receipt shall be the next Business Day immediately following the date of such delivery or transmission.

*[Remainder of page intentionally left blank]*

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**IN WITNESS WHEREOF** the Company has duly executed this Debenture as of the date first above by its duly authorized officer.

Per: _________________________________________________<br> Name: Leah Wald<br> Title: Chief Executive Officer

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**SCHEDULE "A"**

**CONVERSION NOTICE**

**TO: Sol Strategies Inc. (the "Company")**

The undersigned registered holder of the convertible debenture dated January [•], 2025 (the **"Debenture"),** given by the Company, hereby subscribes for Common Shares, on the terms specified in the Debenture, to the extent of $______________ of Principal Sum. The Debenture is hereby tendered to the Company and will, upon due issuance of the Common Shares aforesaid and, if required, any replacement Debenture for any portion of the Debenture not converted, be null and void.

The Common Shares subscribed for will be issued as set forth below and will be mailed or delivered to the address set forth below.

If the Debentures are being converted by, or for the account or benefit of a U.S. Person or a person in the United States, the undersigned represents, warrants and certifies as follows (one only) of the following must be checked):

❏ A. The undersigned has not been solicited to convert the Debentures by any person, or if the undersigned has been solicited to convert the Debentures, the undersigned has confirmed that no commission or remuneration has been or will be paid or given, directly or indirectly, for soliciting such conversion, and the undersigned acknowledges that the Company is relying on the registration exemption provided by section 3(a)(9) of the United States Securities Act of 1933, as amended (the **"U.S. Securities Act"),** to issue the Common Shares; OR

❏ B. The undersigned has delivered to the Company and the Company an opinion of counsel reasonably satisfactory to the Company to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available. (Note: If this box is to be checked, holders are encouraged to consult with the Company in advance to determine that the legal opinion tendered in connection with conversion will be satisfactory in form and substance to the Company.)

**❏ If the undersigned has checked Box A or B, and the undersigned has determined with the benefit of legal advice that the restrictions on transfer contained in the Debenture and the U.S. Legend are not required to be imposed on the beneficial interest of the undersigned in order to maintain compliance with the U.S. Securities Act, the undersigned has caused to be delivered to the Company, at the request of the Company, an opinion of counsel of recognised standing, in form and substance reasonably satisfactory to the Company, to the foregoing effect.**

Capitalized terms not defined in this Conversion Notice have the meanings ascribed to them in the Debenture.

*[Remainder of this page intentionally left blank]*

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DATED this ________ day of __________________, 20_.

**If subscriber is an individual:**

    <br> Witness Signature of Subscriber

Print below the name and address in full of the person in whose name the Common Shares subscribed for are to be issued. If the Common Shares subscribed for are to be issued to more than one person, similar information must be provided for each person, as well as the number of Common Shares to be issued to each. (If any of the Common Shares are to be issued to a person or persons other than the Holder of the Debenture, the Holder must pay to the Company all requisite taxes.)

Name ___________________________________________________________________________________________________<br>Address ___________________________________________________________________________________________________<br> ___________________________________________________________________________________________________

Social Insurance Number ____________________________________________Postal Code___________________________________

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**EXHIBIT "C"<br>(see attached)**

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**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DATE HEREOF.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF SOL STRATEGIES INC. (THE "COMPANY") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE OF THE UNITED STATES IN ACCORDANCE WITH RULES 903 OR 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN ACCORDANCE WITH (1) (I) RULE 144A OR (II) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, OR (2) ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT, IN THE CASE OF (D)(1)(II) OR (D)(2) ABOVE OR IF OTHERWISE REQUIRED BY THE ISSUER, AN OPINION OF COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE ISSUER, IS PROVIDED. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON WITHIN THE UNITED STATES UNLESS THE WARRANTS AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. AS USED HEREIN, THE TERMS 'UNITED STATES' AND 'U.S. PERSON' HAVE THE MEANINGS ASSIGNED TO THEM IN REGULATIONS UNDER THE U.S. SECURITIES ACT.**

**THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE ON OR BEFORE 5:00 P.M. (TORONTO TIME) ON JANUARY** **[ ],** **2030, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.**

**WARRANTS TO PURCHASE COMMON SHARES OF** <br>**SOL STRATEGIES INC.**

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| | |
|:---|:---|
| **Number - W2025-001** | **Number of warrants represented by this** |
|  | **certificate: 11,000,000** |

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**THIS CERTIFIES THAT,** for value received, [•] (the **"Holder"**), being the registered holder of such number of common share purchase warrants (collectively, the **"Warrants"**) as set out above, is entitled, at any time prior to the Expiry Time (as defined below) to subscribe for and purchase, in respect of each Warrant held, one fully-paid and non-assessable common share (**"Common Share"**) of Sol Strategies Inc. (the **"Corporation"**) at a price of $2.50 (such amount hereinafter, the **"Exercise Price"**), subject to adjustment as set out herein, by surrendering to the Corporation at its principal office, 217 Queen St W #401, Toronto, ON M5V 0R2, this Warrant certificate (the **"Warrant Certificate"**), with a completed and executed subscription form in the form attached hereto, and payment in full for the Common Shares being purchased, which payment shall be made by certified cheque or such other means acceptable to the Corporation in same day freely transferable funds at par in Toronto.

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The Corporation shall treat the Holder as the absolute owner of these Warrants for all purposes and the Corporation shall not be affected by any notice or knowledge to the contrary. The Holder shall be entitled to the rights evidenced by this Warrant Certificate free from all equities and rights of set-off or counterclaim between the Corporation and the original or any intermediate holder and all persons may act accordingly and the receipt by the Holder of the Common Shares issuable upon exercise hereof shall be a good discharge to the Corporation and the Corporation shall not be bound to inquire into the title of any such Holder.

1. <u>**Definitions:**</u> In this Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall have the following meanings namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Attribution Parties"** means, collectively, the following persons: (i) any direct or indirect affiliates of the Holder, (ii) any person acting or who could be deemed to be acting as a Section 13(d) "group" together with the Holder or any Attribution Parties, and (iii) any other persons whose beneficial ownership of the Common Shares would or could be aggregated with the Holder's and/or any other Attribution Parties for purposes of Section 13(d) or Section 16 of the Exchange Act or who is "acting jointly or in concert" with the Holder, as such term is described in National Instrument 62-104 - *Take Over Bids and Issuer Bids;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Business Day"** means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Common Shares"** means the common shares in the capital of the Corporation as such shares are constituted on the date hereof, as the same may be reorganized, reclassified or otherwise changed pursuant to any of the events set out in Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Convertible Securities"** means any agreement, option, warrant, note, instrument, right, unit or other security or conversion privilege issued or granted by the Corporation or any of its affiliates that is exercisable or convertible into, or exchangeable for, or otherwise carries the right of the holder to purchase or otherwise acquire Common Shares, including pursuant to one or more multiple exercises, conversions and/or exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Corporation"** means Sol Strategies Inc., a company incorporated under the laws of the Province of Ontario and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **"Current Market Price"** at any date, means the volume weighted average trading price per Common Share at which the Common Shares have traded on the Canadian Securities Exchange, or, if the Common Shares in respect of which a determination of current market price is being made are not listed thereon, on such stock exchange or market on which such shares are listed as may be selected for such purposes by the Directors, or, if the Common Shares are not listed on any stock exchange or market, then on the over-the-counter market, for any 20 consecutive Trading Days selected by the Corporation on the Trading Day before such date, or if such Common Shares are not listed on any exchange or market or quoted on any over-the-counter market, the current market price shall be as determined by such firm of independent chartered accountants as may be selected by the Directors; and the weighted average price per share shall be determined by dividing the aggregate sale price of all Common Shares traded on such stock exchange or market, as the case may be, during such 20 consecutive Trading Days by the total number of Common Shares so traded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Directors"** means the members of the board of directors of the Corporation at the applicable time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Exchange Act"** means the Securities Exchange Act of 1934, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **"Exercise Price"** means $2.50 per Common Share, subject to adjustment in accordance with Section 11 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **"Expiry Day"** means January [•], 2030;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **"Expiry Time"** means 5:00 p.m., Toronto time, on the Expiry Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **"Fair Market Value"** means the fair market value as determined by the Directors, acting reasonably; provided that if a dispute arises with respect to Fair Market Value, such dispute will be conclusively determined by such firm of independent chartered professional accountants as may be selected by the Directors and acceptable to the Holder, acting reasonably, and any such determination will be binding upon the Holder and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **"Holder"** means the holder set forth on the first page hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **"person"** means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal representative, or any group or combination thereof or any other entity whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Trading Day"** with respect to a stock exchange, market or over-the-counter market means a day on which such stock exchange or over-the-counter market is open for business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"U.S. Holder"** means a Holder who is a person in the United States or a U.S. Person, or was offered the Debentures, or executed or delivered the agreement to purchase the Warrants, in the United States, or was in the United States at the time the purchaser's buy order originated, or is purchasing or holding the Warrants for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"U.S. Person"** means a "U.S. person" defined in Rule 902 of Regulation S under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **"U.S. Securities Act"** means the United States Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **"United States"** means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **"Warrants"** shall have the meaning set forth on the face page hereof.

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<u>2.</u> <u>**Expiry Time:**</u> At the Expiry Time, all rights under the Warrants evidenced hereby, in respect of which the right of subscription and purchase herein provided for shall not theretofore have been exercised, shall expire and be of no further force and effect.

<u>3.</u> <u>**Exercise Procedure:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Holder may exercise the right to subscribe for and purchase the number of Common Shares herein provided for by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate, with the subscription form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation, together with a certified cheque (or such other method of payment acceptable to the Corporation) payable to or to the order of the Corporation in an amount equal to the aggregate Exercise Price in respect of the Warrants so exercised. Any Warrant Certificate so surrendered shall be deemed to be surrendered only upon delivery thereof to the Corporation at its principal office set forth herein (or to such other address as the Corporation may notify the Holder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon such delivery as aforesaid, the Corporation shall cause to be issued to the Holder hereof the Common Shares subscribed for not exceeding those which such Holder is entitled to purchase pursuant to this Warrant Certificate and the Holder hereof shall become a shareholder of the Corporation in respect of the Common Shares subscribed for with effect from the date of such delivery and shall be entitled to delivery of a certificate evidencing the Common Shares and the Corporation shall cause such certificate or certificates to be mailed to the Holder hereof at the address or addresses specified in such subscription as soon as practicable, and in any event within five Business Days of such delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Warrant and the Common Shares to be issued upon its exercise have not been registered under the U.S. Securities Act or the securities laws of any state of the United States. This Warrant may not be exercised in the United States or by or on behalf of any U.S. Person or person in the United States, directly or indirectly, unless (i) the common shares are registered under the U.S. Securities Act and the applicable laws of any such state, or (ii) an exemption from such registration requirements is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that any Warrants are exercised before May [I], 2025, the certificate(s) representing the Common Shares issued upon such exercise shall bear the following legend:

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY 2025."**

provided that, if at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary or advisable under any such securities laws, or the holder of any such legended certificate, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to the Corporation) to the effect that such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange for a certificate which does not bear such legend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Issuance and delivery of Common Shares upon exercise of this Warrant Certificate shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense (excluding any applicable stamp duties) in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary contained herein, the Corporation shall not effect the exercise of any Warrants, and the Holder shall not have the right to exercise any Warrants, and any such exercise shall be null and void ab initio and treated as if the exercise had not been made, to the extent that immediately prior to or following such exercise, the Holder, together with its Attribution Parties, beneficially owns or would beneficially own as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder or in accordance with National Instrument 62-104 *- Take Over Bids and Issuer Bids,* in excess of 9.98% (the **"Maximum Percentage"**) of the Common Shares that would be issued and outstanding following such exercise. For purposes of calculating beneficial ownership for determining whether the Maximum Percentage is or will be exceeded, the aggregate number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties, shall include the number of Common Shares held and/or beneficially owned by the Holder together with the Attribution Parties plus the number of Common Shares issuable upon exercise of the relevant Warrant with respect to which the determination is being made but shall exclude the number of Common Shares which would be issuable upon (i) exercise of the remaining, unexercised Warrant held and/or beneficially owned by the Holder or the Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Corporation held and/or beneficially owned by such Holder or any Attribution Party (including, without limitation, any convertible notes, convertible shares or warrants) that are subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes of this Section 3(e), beneficial ownership of the Holder or the Attribution Parties shall, except as set forth in the immediately preceding sentence, be calculated and determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder and in accordance with National Instrument 62-104 - *Take Over Bids and Issuer Bids.* For purposes of these Warrants, in determining the number of outstanding Common Shares, a Holder of the Warrants may rely on the number of outstanding Common Shares as reflected in (1) the Corporation's most recent annual information form, interim or annual management's discussion and analysis, material change report, Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with Canadian securities regulators or the Commission, as the case may be, (2) a more recent public announcement by the Company, or (3) any other notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding (such issued and outstanding shares, the **"Reported Outstanding Share Number"**). For any reason at any time, upon the written or oral request of the Holder, the Corporation shall within two Trading Days confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. The Holder shall disclose to the Corporation the number of Common Shares that it, together with the Attribution Parties holds and/or beneficially owns and has the right to acquire through the exercise of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously or immediately prior to submitting an exercise notice for the relevant Warrants. If the Corporation receives an exercise notice from the Holder at a time when the actual number of outstanding Common Shares is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such exercise notice would otherwise cause the Holder's, together with the Attribution Parties', beneficial ownership, as determined pursuant to this Section 3(e), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant to such Exercise Notice (the number of shares by which such purchase is reduced, the **"Reduction Shares"**) and (ii) as soon as reasonably practicable, the Corporation shall return to the Holder any Exercise Price paid by the Holder for the Reduction Shares. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Corporation, including these Warrants, by the Holder and the Attribution Parties since the date as of which the Reported Outstanding Share Number was reported. By written notice to the Corporation, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 19.98% specified in such notice; provided that (i) any increase in the Maximum Percentage will not be effective until the 61st day after such notice is delivered to the Corporation and shall not negatively affect any partial exercise effected prior to such change.

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<u>4.</u> <u>**Partial Exercise:**</u> The Holder may subscribe for and purchase a number of Common Shares less than the number the Holder is entitled to purchase pursuant to this Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the Holder shall in addition be entitled to receive, without charge, a new Warrant Certificate in respect of the balance of the Common Shares which the Holder was entitled to subscribe for pursuant to this Warrant Certificate and which were then not purchased.

<u>5.</u> <u>**No Fractional Shares:**</u> Notwithstanding any adjustments provided for in Section 11 hereof or otherwise, the Corporation shall not be required upon the exercise of any Warrants to issue fractional Common Shares in satisfaction of its obligations hereunder and, in any such case, the number of Common Shares issuable upon the exercise of any Warrants shall be rounded down to the nearest whole number. To the extent that the Holder would be entitled to purchase a fraction of a Common Share, such right may be exercised in respect of such fraction only in combination with other rights which in the aggregate entitle the Holder to purchase a whole number of Common Shares.

<u>6.</u> <u>**Exchange of Warrant Certificates:**</u> This Warrant Certificate may be exchanged for Warrant Certificates representing in the aggregate the same number of Warrants and entitling the Holder thereof to subscribe for and purchase an equal aggregate number of Common Shares at the same Exercise Price and on the same terms as this Warrant Certificate (with or without legends as may be appropriate).

<u>7.</u> <u>**Transfer of Warrants:**</u> Subject to applicable law, the Holder may transfer the within Warrants by delivering to the Corporation prior to the Expiry Time at its principal office this Warrant Certificate with the transfer form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the Corporation. If less than all Warrants represented by this Warrant Certificate are transferred, the Holder shall be entitled to receive a new Warrant Certificate in respect of the number of Warrants which have not been transferred. Notwithstanding the foregoing, the Corporation may refuse to permit the transfer of any Warrant if such transfer would constitute a violation of the securities laws of any jurisdiction. Subject to the foregoing, the Corporation shall issue and mail as soon as practicable, and in any event within five Business Days of such delivery, a new Warrant Certificate (with or without legends as may be appropriate) registered in the name of the transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer as directed.

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<u>8.</u> <u>**Not a Shareholder:**</u> Nothing in this Warrant Certificate or in the holding of a Warrant evidenced hereby shall be construed as conferring upon the Holder any right or interest whatsoever as a shareholder of the Corporation.

<u>9.</u> <u>**No Obligation to Purchase:**</u> Nothing herein contained or done pursuant hereto shall obligate the Holder to subscribe for or the Corporation to issue any shares except those shares in respect of which the Holder shall have exercised its right to purchase hereunder in the manner provided herein.

<u>10.</u> <u>**Covenants:**</u> 

The Corporation covenants and agrees that so long as any Warrants evidenced hereby remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall reserve and there shall remain unissued out of its authorized capital a sufficient number of Common Shares to satisfy the right of purchase herein provided for, it will cause the Common Shares subscribed for and purchased in the manner herein provided to be issued and delivered as directed and such Common Shares shall be issued as fully paid and non-assessable Common Shares and free from all taxes, liens and charges with respect to the issue thereof and the holders thereof shall not be liable to the Corporation or to its creditors in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation will at all times while any Warrants are outstanding preserve and maintain its corporate existence and will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice, will keep or cause to be kept proper books of account in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Corporation will at all times while any Warrants are outstanding use commercially reasonable efforts to maintain the listing of the Common Shares on the CSE or such other recognized exchange on which the Common Shares may be listed at the time of exercise of the Warrants, subject to the exception provided in Section 13 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Corporation shall use commercially reasonable efforts to maintain its status as a reporting issuer not in default in the Provinces of Canada in which it was a reporting issuer on the date of issuance of this Warrant Certificate.

11. **Adjustments:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of the holder of the Warrants evidenced hereby, including the number of Common Shares issuable upon the exercise thereof, will be adjusted from time to time in the events and in the manner provided in, and in accordance with the provisions of, this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and whenever the Corporation shall (i) subdivide or re-divide the outstanding Common Shares into a greater number of Common Shares; (ii) reduce, combine or consolidate the outstanding Common Shares into a smaller number of Common Shares; (iii) issue any Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend, the Exercise Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation or on the record date for such issue of Common Shares by way of a stock dividend, as the case may be, shall be decreased, in the case of the events referred to in (i) and (iii) above, in the proportion which the number of Common Shares outstanding before such subdivision, re-division or dividend bears to the number of Common Shares outstanding after such subdivision, re-division or dividend, or shall be increased, in the case of the events referred to in (ii) above, in the proportion which the number of Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date fixed for such stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 11(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of any merger, amalgamation, arrangement or other form of business combination of the Corporation with or into another corporation or other entity resulting in a reclassification or redesignation of the Common Shares outstanding or a change, conversion or exchange of Common Shares into or for other shares or securities or the holders of Common Shares becoming entitled to receive shares or other securities of the other corporation or entity, the Holder shall be entitled to receive, and shall accept in lieu of the number of Common Shares to which it was theretofore entitled upon such conversion, the kind and amount of shares and other securities or property which the Holder would have been entitled to receive, on the effective date thereof, had it been the registered holder of the number of Common Shares to which it was theretofore entitled upon conversion. If necessary, appropriate adjustments shall be made in the application of the provisions set forth in this Section 11 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Section 11 shall thereafter correspondingly be made applicable as nearly as may be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of any Warrants. Any such adjustments shall be made by and set forth in a supplemental certificate approved by the Directors and shall for all purposes be conclusively deemed to be an appropriate adjustment, after reasonable consultation with the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If and whenever the Corporation shall issue or distribute to all or substantially all the holders of Common Shares (i) shares of the Corporation of any class; (ii) rights, options or warrants (that shall not have expired unexercised, unconverted or unexchanged at the time a Holder exercises any Warrants); (iii) evidences of indebtedness; or (iv) any other assets or securities and if such issuance or distribution does not result in an adjustment as provided for in Section 11(b) or Section 11(c) (any such events being herein called a **"Special Distribution"**), the Exercise Price shall be adjusted effective immediately before the record date at which the holders of Common Shares are determined for purposes of any such issuance or distribution by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date multiplied by the Current Market Price on the record date, less the Fair Market Value of the Special Distribution, and (y) is the number of Common Shares outstanding on the record date multiplied by such Current Market Price. Such adjustment shall be made successively whenever such a record date is fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Corporation sets a record date for the issuance of Convertible Securities to all or substantially all holders of Common Shares, entitling them, for a period expiring not more than 45 days after the record date at a price per security (or having a conversion price per such security) which is less than 95% of the Current Market Price as of such record date, then the Exercise Price will be adjusted downward effective immediately after the record date so that it will equal the price determined by multiplying the Exercise Price in effect on the record date by a fraction (x) divided by (y), where (x) is the number of Common Shares outstanding on the record date plus a number of Common Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the Convertible Securities so offered) by the Current Market Price; and (y) is the number of Common Shares outstanding on the record date plus the total number of additional Common Shares offered for subscription or purchase (or into which the Convertible Securities so offered are convertible). Such adjustment shall be made successively whenever such an issuance is made or a record date is fixed. To the extent that any such securities are not so issued or are not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if the record date had not been fixed or the Exercise Price which would then be in effect based upon the number of Common Shares actually issued upon the exercise of such securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Corporation fixes a record date for the payment of a cash dividend or distribution to all or substantially all the holders of its outstanding Common Shares, the Exercise Price shall be adjusted immediately after such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a fraction (x) divided by (y) where (x) is the Current Market Price on such record date, less the amount in cash per Common Share of the dividend or distribution; and (y) is the Current Market Price on such record date. Such adjustment shall be made successively whenever such record date is fixed. To the extent that such a cash dividend or distribution is not made, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Simultaneously with any adjustment to the Exercise Price pursuant to Section **11,** the number of Common Shares purchasable upon the exercise of each Warrant (at the adjusted Exercise Price) shall be adjusted contemporaneously with the adjustment of the Exercise Price by multiplying the number of Common Shares theretofore purchasable on the exercise thereof by a fraction, the numerator of which shall be the applicable Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the applicable Exercise Price resulting from such adjustment.

12. <u>**Rules Regarding Calculation of Adjustment of Exercise Price:**</u>

The following rules and procedures are applicable to adjustments made pursuant to Section 11:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Common Shares owned by or held for the account of the Corporation, if any, will be deemed not to be outstanding for the purpose of any computation pursuant to Section 11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any case where the application of Section 11 results in a decrease of the Exercise Price taking effect immediately after the record date for a specific event, if any Warrants represented by this Warrant Certificate is exercised after that record date and prior to completion of the event, the Corporation may postpone the issuance to the Holder of the Common Shares or payment of cash to which the Holder is entitled by reason of the decrease of the Exercise Price, but such Common Shares will be so issued and delivered and such cash will be so paid and delivered, as applicable, to the Holder upon completion of that event with the number of such Common Shares or cash amount, as applicable calculated on the basis of the Exercise Price on the exercise date adjusted for completion of that event. The Corporation shall deliver to the Holder an appropriate instrument evidencing the Holder's right to receive such Common Shares or cash, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in case the Corporation after the date hereof shall take any action affecting its Common Shares, other than any action described in Section 11, which in the opinion of the Directors, acting reasonably, would materially affect the conversion rights of the Holder, the Exercise Price and number of Common Shares issuable upon exercise of the Warrants shall be adjusted in such manner, at such time and by such action by the Directors, as they may determine, acting reasonably, to be equitable to the Holder and the Corporation in the circumstances, but subject in all cases to any necessary regulatory approval. The failure to take any such action by the Directors so as to provide for an adjustment on or prior to the effective date or record date of any action by the Corporation affecting its Common Shares shall be conclusive evidence that the Directors have determined that it is equitable to make no adjustment in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the adjustments provided for in Section 11 are cumulative and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues or other events resulting in any adjustment under the provisions of this Section, provided that, notwithstanding any other provision of Section 11 or this Section 12, no adjustment shall be made which would result in any increase in the Exercise Price (except upon a consolidation or combination of outstanding Common Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no adjustment in the Exercise Price will be made in respect of any event described in Section 11 if the Holder is entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised all Warrants represented by this Warrant Certificate immediately prior to the effective date or record date of such event, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no adjustment in the Exercise Price will be made pursuant to Section 11 in respect of the issue of Common Shares pursuant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Warrant Certificate or Convertible Securities existing as of the issue date of this Warrant Certificate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any stock option, purchase plan or other share compensation arrangement for officers, employees, directors or consultants of the Corporation outstanding or in existence as at the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of Common Shares issuable upon the exercise of the Warrants represented by this Warrant Certificate, such disputes shall be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by such other firm of independent chartered accountants accredited by the Canadian Public Accountability Board as may be selected by the Directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 11 hereof and shall be binding upon the Corporation and the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if any Common Shares to be issued upon the conversion of the exercise of the Warrants represented by this Warrant Certificate require any filing with or registration with or approval of any governmental authority in Canada or compliance with any other requirement under any applicable laws of Canada or a province thereof before such Common Shares may be validly issued upon such conversion or traded by the person to whom they are issued pursuant to such conversion, the Corporation shall take all action as may be necessary to secure such filing, registration, approval or compliance, as the case may be;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the Corporation sets a record date to determine holders of Common Shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and will thereafter legally abandon its plans to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price will be required by reason of the setting of such record date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) notwithstanding the foregoing, nothing in this Section 12 shall in any manner compromise or derogate from any rights the Holder may have to approve any transaction contemplated by Section 11, whether in its capacity as a shareholder (if applicable), as a Holder or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Corporation shall from time to time as soon as practicable after the occurrence of any event which requires an adjustment or re-adjustment in the Exercise Price as provided in Section 11 or 12, deliver a certificate of the Corporation to the Holder specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Corporation shall give notice to the Holder, in the manner provided in Section 23, of its intention to undertake any event and/or fix a record date (if applicable) for any event described in Section 11 that may give rise to an adjustment in the Exercise Price not less than 30 days prior to the earlier of the record date (if applicable) or the effective date of such event, which notice shall include the material terms of such event.

13. <u>**Consolidation and Amalgamation:**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not enter into any transaction whereby all or substantially all or its undertaking, property and assets would become the property of any other corporation (herein called a **"successor corporation"**) whether by way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the consummation of such transaction the Corporation and the successor corporation shall have executed such instruments and done such things as the Corporation, acting reasonably, considers necessary or advisable to establish that upon the consummation of such transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the successor corporation will have assumed all the covenants and obligations of the Corporation under this Warrant Certificate, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Warrants and the terms set forth in this Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against the successor corporation, to all the rights of the Holder under this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the conditions of Section 13(a) shall have been duly observed and performed the successor corporation shall possess, and from time to time may exercise, each and every right and power of the Corporation under the Warrants in the name of the Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any Director or officer of the Corporation may be done and performed with like force and effect by the like Directors or officers of the successor corporation.

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<u>14.</u> <u>**Representation and Warranty:**</u> The Corporation hereby represents and warrants with and to the Holder that the Corporation is duly authorized and has the corporate and lawful power and authority to create and issue the Warrants and the Common Shares issuable upon the exercise hereof and perform its obligations hereunder and that this Warrant Certificate represents a valid, legal and binding obligation of the Corporation enforceable in accordance with its terms.

<u>15.</u><u>**Lost Certificate:**</u> If the Warrant Certificate evidencing the Warrants issued hereby becomes stolen, lost, mutilated or destroyed the Corporation may, on such terms as it may in its discretion, acting reasonably, impose, issue and countersign a new Warrant Certificate of like denomination, tenor and date as the Warrant Certificate so stolen, lost mutilated or destroyed.

<u>16.</u> <u>**Governing Law:**</u> This Warrant Certificate shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable therein but the reference to such laws shall not, by conflict of laws, rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario.

<u>17.</u><u>**Severability:**</u> If any provision in this Warrant Certificate is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, all other provisions of this Warrant Certificate shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Warrant Certificate so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

<u>18.</u><u>**Headings:**</u> The headings of the articles, sections, subsections and clauses of this Warrant Certificate have been inserted for convenience and reference only and do not define, limit, alter or enlarge the meaning of any provision of this Warrant Certificate.

<u>19.</u> <u>**Numbering of Articles, etc.:**</u> Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, subclause or schedule refers to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Warrant Certificate.

<u>20.</u> **<u>Gender:</u>** Whenever used in this Warrant Certificate, words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender. The term "including" shall be deemed to mean "including, without limitation".

<u>21.</u><u>**Day not a Business Day:**</u> In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be required to be taken on or before the requisite time on the next succeeding day that is a Business Day.

------

<u>22.</u><u>**Binding Effect:**</u> This Warrant Certificate and all of its provisions shall enure to the benefit of the Holder, its heirs, executors, administrators, successors, assigns and legal personal representatives and shall be binding upon the Corporation and its successors.

<u>23.</u><u>**Notice:**</u> Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed to be validly given if the notice is sent by fax, email, prepaid same day courier or first class mail addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to the Holder at the latest address of the Holder as recorded on the books of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Corporation at:

Sol Strategies Inc.

217 Queen St W #401<br>Toronto, ON M5V 0R2

Attention: Chief Executive Officer

Email: ***[Redacted - Contact Information]***

Any notice given as aforesaid shall conclusively be deemed to have been received by the addressee, if sent by fax or email on the day of transmission or, if such day is not a Business Day, on the next Business Day, if sent by courier, on the next following Business Day and, if sent by mail, on the fifth day following the posting thereof.

***(Signature page to follow)***

------

**IN WITNESS WHEREOF** the Corporation has caused this Warrant Certificate to be signed by its duly authorized officer as of this ____day of January, 2025.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| Per: |  |
|  | Authorized Signing Officer |

---

**[Warrant Certificate]**

------

**SCHEDULE "A"**

<u>**SUBSCRIPTION FORM**</u>

**TO BE COMPLETED IF WARRANTS ARE TO BE EXERCISED:**

**TO: SOL STRATEGIES INC.** <br>217 Queen St W #401 <br>Toronto, ON M5V 0R2

The undersigned holder of the within Warrant hereby irrevocably subscribes for ______________ Common Shares of Sol Strategies Inc. (the **"Corporation"**) pursuant to the within Warrant and tenders herewith a certified cheque or bank draft for $______________ ($2.50 per Common Share until January [•], 2030) in full payment therefor.

By executing this subscription form the undersigned represents and warrants that:

❏ (A) the undersigned holder (i) at the time of exercise of the Warrant is not in the United States, (ii) is not a U.S. Person and is not exercising the Warrant on behalf of a U.S. Person or person in the United States, (iii) did not execute or deliver this subscription form while in the United States (iv) delivery of the underlying common shares will not be to an address in the United States and (v) did not receive any solicitation for the exercise of this Warrant while in the United States; OR

❏ (B) the undersigned holder (i) is the original purchaser of the Warrant, (ii) is exercising the Warrant for its own account or for the account of a beneficial purchaser that was named in the securities purchase agreement pursuant to which it purchased such convertible debenture units, and (iii) is, and such beneficial purchaser, if any, is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act at the time of exercise of the Warrant, and (iv) the representations, warranties and covenants of the holder made in the original U.S. Accredited Investor Confirmation Certificate attached as Exhibit "A" to the securities purchase agreement in connection with its purchase of convertible debenture unit remain true and correct as of the date of exercise of these Warrants; OR

❏ (C) if the undersigned holder is resident in the United States or is a U.S. Person or is exercising the Warrant on behalf of a U.S. Person or person in the United States, the undersigned holder has delivered to the Corporation and the Corporation's transfer agent an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing in form and substance reasonably satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to the effect that with respect to the common shares to be delivered upon exercise of the Warrant, the issuance of such securities has been registered under the U.S. Securities Act and applicable securities laws of any state of the United States or an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States is available.

------

**Note: Certificates or statements representing common shares will not be registered or delivered to an address in the United States unless box (B) or (C) immediately above is checked. Unless box (A) is checked the common shares delivered will be "restricted securities" under the U.S. Securities Act, will be subject to transfer restrictions under the U.S. Securities Act and any applicable securities laws of any state of the United States and will bear a legend to such effect. As used herein "United States" and "U.S. Person" have the meaning given such terms in Regulation S under the U.S. Securities Act. Holdings checking box (C) above are encouraged to provide a draft of the legal opinion to the Corporation.**

**DATED this _____________________________ day of _______________________________, 20 <u>.</u>**

---

| |
|:---|
| **NAME:** |
| Signature**:** |
| Registration<br>instructions**:** |

---

____________ Please check if the Common Shares certificates are to be delivered at the office where this Warrant Certificate is surrendered, failing which the Common Shares certificates will be mailed to the address in the registration instructions set out above.

If any Warrants represented by this Warrant Certificate are not being exercised, a new Warrant Certificate representing the unexercised Warrants will be issued and delivered with the Common Share certificate.

------

**SCHEDULE "B"**

<u>**WARRANT TRANSFER FORM**</u>

FOR VALUE RECEIVED, the undersigned (the **"Transferor"**) hereby sells, assigns and transfers unto (name) **______________________________________________________________________________________________** (the **"Transferee"**) of

(residential address) **__________________________________________________________________________________________________**

**_____________________________________________________________________________________________________________________**

a total of ____________________ Warrants of the Sol Strategies Inc. (the **"Company"**) registered in the name of the undersigned represented by the within certificate, and irrevocably appoints the Company as the attorney of the undersigned to transfer the said securities on the register of transfers for the said Warrants, with full power of substitution.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

❏ (A) the transfer is being made only to the Company;

❏ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and in compliance with any applicable local securities laws and regulations and the holder has provided herewith the Declaration for Removal of Legend attached as Appendix I to this Schedule "B" to the Warrant certificate, or

❏ (C) the transfer is being made within the United States or to, or for the account or benefit of, U.S. Persons, in accordance with a transaction that does not require registration under the U.S. Securities Act or applicable securities laws of any state of the United States and the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable securities laws of any state of the United States, in which case the undersigned has furnished to the Company and its agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and its agent to such effect.

------

❏ If transfer is to, or for the account or benefit of, a U.S. Person or a person in the United States, check this box.

NOTICE: The signature of this assignment must correspond with the name as written upon the face of the certificate, in every particular, without alteration or enlargement or any change whatever, and must be guaranteed by a bank, trust company or a member of a recognized stock exchange. The guarantor must affix a stamp bearing the actual words "Signature Guaranteed".

DATED this<u> </u> day of<u> </u>, 20_.

---

| | |
|:---|:---|
| _____________________________________ |  |
| Signature Guaranteed | (Signature of transferring Warrantholder) |
|  | Name (please print) |
|  | Address |

---

------

**Appendix I to Schedule "B" - Warrant Transfer Form** <br>**Declarations for Removal of Legend**

**To: Sol Strategies Inc. (the "Issuer").**

The undersigned (A) acknowledges that the sale of __________________ (Securities), represented by the Issuer's certificate number __________________ , to which this declaration relates, has been made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"), and (B) certifies that (1) the undersigned is not (i) a distributor (as that term is defined in Rule 902 of Regulation S under the 1933 Act), (ii) an affiliate (as that term is as defined in Rule 144(a)(1) under the 1933 Act or is such an affiliate solely by virtue of being an officer and/or director thereof) of the Corporation, (iii) an affiliate of a distributor, or (iv) acting on behalf of any of the foregoing; (2) the offer of such securities was not made to a "US Person" or to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the Canadian Securities Exchange or another designated offshore securities market as defined in Regulation S and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a U.S. person or a buyer in the United States; (3) neither the seller nor any person acting on its behalf engaged in any directed selling efforts in connection with the offer and sale of such securities, and (4) the sale will be bona fide and not for the purpose of "washing off' the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not and will not intend to replace the securities to be sold in reliance on Rule 904 of the 1933 Act with fungible unrestricted securities; (6) the sale will not be a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

By: _______________________________________________ Date: _______________________________________________

Signature

Name (please print) ____________________________________________

**Affirmation by Seller's Broker-Dealer**

We have read the foregoing representations of our customer, ___________________________ (the **"Seller"**), dated **__________________________**, with regard to our sale, for such Seller's account, of the ________________________ (Securities), represented by certificate number ___________________ of the Issuer described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, and (B) we have no belief that the Seller's representations set forth above are not full, true and correct, and (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities. Terms used herein have the meanings given to them by Regulation S.

______________________________________________<br>Name of Firm

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Authorized officer

Date: _________________________________________

------

## Exhibit 99.67

------

**Sol Strategies Announces Second Tranche Private Placement of CAD $2.5 Million**

**Proceeds to be used to Increase SOL Holdings and Expand Validator Operations**

Toronto, Ontario--(Newsfile Corp. - January 17, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced that it has entered into a subscription agreement for a second tranche private placement of CAD $2.5 million (the "Private Placement"), bringing the total gross proceeds received pursuant to private placement financings to CAD $30 million. The financing will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

The Private Placement will consist of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $2.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company (each, a "Share"), and the Debentures are convertible at any time into Shares of the Company at CAD $2.50 per Share. Each warrant entitles the holder to purchase one (1) Share of the Company at an exercise price of CAD $2.50 per Share, exercisable at any time on or before the five year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the warrants will be subject to restrictions on trading until the date that is four months and a day following closing. The closing of the Private Placement is expected on or about January 24, 2025, subject to customary closing conditions. No finder's fees will be paid in connection with the Private Placement.

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its impact on the Company. There is no assurance that the Private Placement will close or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies <br>**Media contact:** <u>sol@kcsa.com</u>

------

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/237537</u>

------

## Exhibit 99.68

------

**Sol Strategies Inc. Announces Upgrade to OTCQX Best Market**

**Enhancing Access for U.S. Investors**

Toronto, Ontario--(Newsfile Corp. - January 21, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF), a publicly traded Canadian company focused on investing in and building infrastructure for the Solana blockchain ecosystem, is pleased to announce that it has qualified to trade on the OTCQX® Best Market, upgrading from the Pink® market. Effective today, Sol Strategies will trade on OTCQX under the symbol "CYFRF".

This milestone marks a significant step in Sol Strategies' commitment to providing greater transparency and accessibility for U.S. investors. Trading on the OTCQX Market allows the company to leverage streamlined reporting standards from its home market, making it easier for U.S. investors to engage with the company while ensuring compliance with the highest standards of financial and corporate governance.

"Joining the OTCQX Best Market reflects our dedication to growth, transparency, and delivering value to our stakeholders," said Leah Wald, CEO of Sol Strategies. "This achievement broadens our reach in the U.S., strengthens our connection to investors, and reinforces our commitment to advancing the Solana ecosystem through innovative investments and infrastructure development."

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its impact on the Company. There is no assurance that the Private Placement will close or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies <br>**Media contact:** <u>sol@kcsa.com</u>

SOURCE: <u>Sol Strategies Inc.</u>

<u>![](exhibit99-68x001.jpg)<br></u>

<br> To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/237845</u>

------

## Exhibit 99.69

------

**Sol Strategies to Announce Fourth Quarter 2024 Financial Results on January 28, 2025**

Toronto, Ontario--(Newsfile Corp. - January 21, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced it will release its financial results for the fourth quarter of 2024 on **Tuesday, January 28, 2025,** at **4 PM EST.**

CEO Leah Wald and CFO Doug Harris will host a live webcast and conference call to discuss the results following the release on **Tuesday, January 28, 2025, at 4:30 PM EST**. Participants will have the opportunity to ask questions during the call.

**Event:** Sol Strategies Fourth Quarter 2024 Financial Results & Full-Year Earnings Webcast and Conference Call

**Webcast Date:** Tuesday, January 28, 2025, at 4:30 PM EST

**Live Call**: (800) 225-9448 Primary (US) or (203) 518-9708 (International)

**Webcast:** <u>https://event.on24.com/wcc/r/4824919/21A4F9C0A4D12B876B64081EDBBF7E63</u>

A replay of the webcast will be available on the company's investor relations website shortly after the event <u>https://solstrategies.io/investors/</u>.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact: <u>sol@kcsa.com</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-69x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/238014</u>

------

## Exhibit 99.70

------

**Sol Strategies Announces Update to Second Tranche Private Placement of CAD $2.5 Million**

**Proceeds to be used to Increase SOL Holdings and Expand Validator Operations**

Toronto, Ontario--(Newsfile Corp. - January 22, 2025) - Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, wishes to announce updated terms to its previously announced second tranche private placement of CAD $2.5 million (the "Private Placement"). The second tranche will bring the total gross proceeds received pursuant to private placement financings to CAD $30 million, with the proceeds being paid in SOL, which will increase the Company's SOL treasury holdings.

The Private Placement will consist of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $2.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 214 warrants (updated from 400 warrants). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company (each, a "Share"), and the Debentures are convertible at any time into Shares of the Company at CAD $4.66 per Share (updated from $2.50 per Share). Each warrant entitles the holder to purchase one (1) Share of the Company at an exercise price of CAD $4.66 per Share (updated from $2.50 per Share), exercisable at any time on or before the five-year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the warrants will be subject to restrictions on trading until the date that is four months and a day following closing. The closing of the Private Placement is expected on or about January 24, 2025, subject to customary closing conditions. No finder's fees will be paid in connection with the Private Placement.

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

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Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its impact on the Company. There is no assurance that the Private Placement will close or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media contact:** <u>sol@kcsa.com</u>

SOURCE: Sol Strategies Inc.

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![](exhibit99-70x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/238013</u>

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## Exhibit 99.71

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**Sol Strategies Announces Completion of** **Second Tranche Private Placement of CAD** **$2.5 Million**

Toronto, Ontario--(Newsfile Corp. - January 24, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced the completion of its second tranche private placement financing of CAD $2.5 million (the "Private Placement"), as previously disclosed in the Company's <u>January 17, 2025</u> and <u>January 22, 2025</u> news releases. The second tranche brings the total gross proceeds received pursuant to private placement financings to CAD $30 million, with the proceeds being paid in SOL, which will increase the Company's SOL treasury holdings.

The Private Placement will consist of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $2.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 214 common share purchase warrants (each, a "Warrant"). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company (each, a "Share"), and the Debentures are convertible at any time into Shares of the Company at CAD $4.66 per Share. Each Warrant entitles the holder thereof to purchase one (1) Share of the Company at an exercise price of CAD $4.66 per Share, exercisable at any time on or before January 24, 2030. The Debentures are redeemable in cash after the three year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants will be subject to restrictions on trading until the date that is four months and a day following the date hereof. No finder's fees were paid in connection with the Private Placement.

**About Sol Strategies**

Sol Strategies is a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain and ecosystem. The Company focuses on leveraging investment opportunities in staking rewards and Solana-based projects, enabling shareholders to indirectly participate in the decentralized finance landscape. Sol Strategies is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker "HODL" and on the OTC market under the ticker "CYFRF".

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

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Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media contact:** <u>sol@kcsa.com</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/238302</u>

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## Exhibit 99.72

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**Sol Strategies Purchases 19,100 Solana, Increases Overall Holdings to $58.4M CAD**

Toronto, Ontario--(Newsfile Corp. - January 27, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company") a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced between January 17, 2025, and January 24, 2025, it acquired approximately 19,100 SOL for approximately $6.98 million CAD, at an average price of $365.49 per SOL, inclusive of fees and expenses.

As of January 24, 2025, Sol Strategies and its subsidiaries held an aggregate of approximately 160,710.36 SOL, acquired at a total purchase price of approximately $37.6 million CAD, with an average purchase price of approximately $234.15 CAD per SOL, inclusive of fees and expenses, with a value of $58.4 million CAD based on the closing price of SOL on January 24, 2025.

Shareholders and the broader investment community are invited to tune in to the Company's Q4 2024 and full year earnings call on Tuesday, January 28, 2025, at 4:30 p.m. EST, to hear about its recent performance, future strategy, and role in advancing Solana's infrastructure.

For more information about Sol Strategies, please visit our website at <u>www.solstrategies.io</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media Contact:** <u>sol@kcsa.com</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/238533</u>

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## Exhibit 99.73

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![](exhibit99-73x001.jpg)

**(formerly Cypherpunk Holdings Inc.)**

**MANAGEMENT DISCUSSION AND ANALYSIS<br>**

<br> For the years ended September 30, 2024 and 2023

As at January 28, 2025

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**DISCLAIMER**

The following Management's Discussion & Analysis ("MD&A") of the financial condition and results of the operations of Sol Strategies, Inc. formerly Cypherpunk Holdings, Inc. (the "Company" or "Sol Strategies") constitutes management's review of the factors that affected the Company's financial and operating performance for the years ended September 30, 2024 and September 30, 2023. All information in this MD&A is given as of the years ended September 30, 2024 and 2023, unless otherwise indicated. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

This MD&A has been prepared in compliance with the requirements of Form 51-102F1, in accordance with National Instrument 51-102 - *Continuous Disclosure Obligations*. This MD&A should be read in conjunction with the audited financial statements for the years ended September 30, 2024, and 2023 together with the notes thereto. In the opinion of management, all adjustments (which consist only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results for the year ended September 30, 2024 (the "Fiscal Year") are not necessarily indicative of the results that may be expected for any future period.

For the purposes of preparing this MD&A, management considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value common shares of Sol Strategies' ("Common Shares"); or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

The words "we", "our", "us", "Company" and "Sol Strategies" refer to Sol Strategies, Inc. together with its management and/or employees of the Company (as the context may require).

These documents, along with additional information about Sol Strategies, are available under the Company's profile at www.sedar.com.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "continues," "forecasts," "projects," "predicts," "intends," "anticipates" or "believes," or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may," "could," "would," "should," "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. These forward-looking statements may include, but are not limited to, statements relating to:

- Our expectations regarding our revenue, expenses, operations and future operational and financial performance;

- Our cash flows;

- Popularity, adoption and rate of adoption of cryptocurrencies;

- The rise of Solana's increasing market share in the asset tokenization market;

- Our future growth plans and acquisition strategies;

- Our ability to stay in compliance with laws and regulations or the interpretation or application thereof that currently apply or may become applicable to our business both in Canada, the United States (the "U.S.") and internationally;

- Our expectations with respect to the application of laws and regulations and the interpretation or enforcement thereof and our ability to continue to carry on our business as presently conducted or proposed to be conducted;

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- The reliability, stability, performance and scalability of our infrastructure and technology;

- Our ability to attract new customers and maintain existing customers;

- Our ability to attract and retain personnel;

- Our expectations with respect to advancement in our technologies;

- Our competitive position and our expectations regarding competition; and

- Regulatory developments and the regulatory environments in which we operate.

Forward-looking statements are based on certain assumptions and analysis made by us in light of our experience and perception of historical trends, current conditions and expected future developments and other factors we believe are appropriate. Forward-looking statements are also subject to risks and uncertainties which include:

- Decline in the cryptocurrency market or general economic conditions;

- Regulatory uncertainty and risk, including changes in laws or the interpretation or application or enforcement thereof and the obtaining of regulatory approvals;

- We are subject to an extensive and highly evolving and uncertain regulatory landscape and any adverse changes to, or our failure to comply with, any laws and regulations, or regulatory interpretation of such laws and regulations, could adversely affect our brand, reputation, business, operating results, and financial condition;

- In connection with such laws and regulations or regulatory interpretation thereof, a particular crypto asset's or product offering's status as a "security" in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a crypto asset or product offering, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, and our business, operating results, and financial condition may be adversely affected;

- Risks related to managing our growth;

- Our dependence on customer growth;

- The future development and growth of crypto is subject to a variety of factors that are difficult to predict and evaluate. If crypto does not grow as we expect, our business, operating results, and financial condition could be adversely affected;

- Regulatory risk, including changes in laws or the interpretation or application thereof and the obtaining of regulatory approvals;

- Technology and infrastructure risks;

- Cybersecurity risks;

- Fluctuations in quarterly operating results;

- Competition in our industry and markets;

- Our reliance on key personnel;

- Our reliance on third party service providers;

- Exchange rate fluctuations;

- Risks related to terrorism, geopolitical crisis, or widespread outbreak of an illness or other health issue; and

- Risks associated with acquisitions and the integration of the acquired businesses;

Inherent in forward-looking statements are risks, uncertainties and other factors beyond Sol Strategies' ability to predict or control. Readers are cautioned that the above does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this document may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for crypto assets may not continue and readers should not put undue reliance on past performance and current trends. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

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**INTRODUCTION**

The audited financial statements for the year ended September 30, 2024, capture a pivotal moment in the Company's history-the beginning of our transformation from a bitcoin holding company to a dynamic leader within the Solana cryptocurrency ("SOL") ecosystem.

Since initiating our new strategy on July 9, 2024, the Company has achieved remarkable growth. By September 30, 2024, we operated a single SOL validator with 101,200 SOL delegated to it, valued at $20.9 million, of which 100,763 SOL were the Company's, with a value of $20.8 million. By January 24, 2025, this number had surged to 1,729,599 SOL across multiple high-performance validators, valued at $634 million, a staggering 1,609% increase in staked SOL. These validators are designed for scalability, high availability, and competitive yields, ensuring operational excellence and strengthening the Solana network.

This rapid growth has translated into significant financial performance. Our validator operations now generate annualized staking revenues of $9.9 million CAD, including $3.9 million<sup>(1)</sup> from our own staked SOL, reflecting a 1,252% increase in staking revenue since September 30, 2024. With an average annual staking yield of approximately 7%<sup>(2)</sup>, these results highlight the efficiency and scalability of our operations.

These milestones underscore our emergence as a key player in the Solana ecosystem, with the full impact of these achievements set to be reflected in our financial statements for the second quarter of fiscal 2025, ending March 31, 2025. This marks the beginning of a new era of growth and innovation for the Company.

**DESCRIPTION OF BUSINESS**

Sol Strategies, Inc. is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's Common Shares have traded on the Canadian Securities Exchange ("CSE") under the symbol "HODL."

On July 9, 2024, Leah Wald was appointed Chief Executive Officer of Sol Strategies, bringing a bold vision to transform the Company into a leading technology-driven enterprise. Under Ms. Wald's leadership, the Company pivoted its strategy to focus on the Solana blockchain ecosystem, leveraging its high-performance infrastructure and scalability. This shift included holding Solana (SOL) as a core balance sheet asset, operating state-of-the-art validators, and developing intuitive staking tools paired with robust compliance frameworks. The Company's mission is to create a scalable, efficient, and secure validation that leverages Solana's unmatched speed, throughput, and ecosystem to deliver long-term value for both users and investors. Reflecting this strategic pivot, the Company rebranded from Cypherpunk Holdings, Inc. to Sol Strategies, Inc. on September 9, 2024.

**Shift in Asset Allocation:**

Since implementing this strategy, Sol Strategies has achieved significant milestones as of January 28, 2025:

● Reallocated digital asset holdings to strategically align with the Company's focus on the Solana ecosystem. Increased Solana Holdings: Sol Strategies increased its Solana (SOL) holdings from nil to 100,763.02 SOL as of September 30, 2024, representing a substantial investment in the ecosystem's growth potential. As of the date hereof, SOL holdings have further increased to 160,710.36 SOL, reinforcing our commitment to expanding within Solana's high-performance blockchain infrastructure.

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● Reduced Bitcoin Exposure: Bitcoin holdings decreased from 215.37 BTC as of September 30, 2023, to 56.25 BTC by September 30, 2024, and stand at 3.16 BTC as of the date hereof, reflecting a strategic reallocation of resources toward Solana-based initiatives.

● The Company successfully liquidated shares in Animoca Brands, generating a gain of $1.8 million, and sold other non-core assets, redirecting capital into core business operations.

**STAKING and VALIDATOR OPERATIONS**

Sol Strategies earns investment income by staking its Solana, by delegating it to one of the Company's three validator nodes (each a "Validator") to receive staking rewards. The Validators use the SOL delegated to them, by both the Company and third party delegators, to perform tasks that help optimize the Solana network, for which the Validators receive rewards that are distributed on a pro rata to the delegators, net of fees. Sol Strategies has significantly grown its validator operations since the end of Fiscal 2024, reinforcing its position as a key infrastructure provider in the Solana ecosystem:

● **Validator Acquisition and Growth:** Sol Strategies acquired and operates multiple high-performance validators As of January 25, 2025, 1,729,599 SOL with a value of $634 million, were staked at the Company's Validators, of which 140,781 SOL were the Company's. This represents an increase of 1,628,398 SOL (1,609%) of SOL delegated to its Validators since the end of Fiscal 2024. At September 30, 2024, 101,200 SOL, with a value of $20.9 million, were delegated to the Validator, of which 100,763 SOL, with a value of $20.8 million, were the Company's. These Validators are optimized for scalability, high availability, and competitive yields, ensuring operational efficiency and strengthening Sol Strategies' role in supporting Solana's network growth.

● **Revenue Growth from Staking**: Sol Strategies' delegated SOL, 140,781 SOL of its 160,710 SOL holdings, is exclusively staked to its own high-performance Validators, which now generate annualized staking income of $3.9 million<sup>(1)</sup>. This marks a significant increase from the 101,200 SOL staked as of September 30, 2024, reflecting a 39% increase in staked SOL. The average annual staking yield of approximately 7%<sup>(2)</sup> across these Validators underscores the efficiency of Sol Strategies' operations, driving a 1,252% annualized increase in staking revenue compared to Fiscal 2024.

● **Validation Revenue:** Since January 1, 2025, the first date with all three Solana Validators were fully under Sol Strategies' ownership and control, the Validators have generated annualized revenues of $9.9 million CAD<sup>(3)</sup>. This revenue is derived from commissions earned from SOL delegated to Sol Strategies' high-performance Validators by the Company and third parties.

● **Staking and Validating Revenue Outlook:** Based the results of the Company's staking and validating operations since January 1, 2025, the first date with all three validators fully under Sol Strategies' ownership and control, the combined staking and validating estimated annual income of the current operations $13,794,274.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Based on the total SOL staking rewards during the period from January 1, 2025 to January 24, 2025 (the "Period"), multiplied by the average SOL price during the Period, which is then multiplied by the average USD/CAD exchange rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Based on the total SOL staking rewards during the period divided by the average amount of SOL staked during the Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Based on the daily validator revenue earned during the period, multiplied by the daily SOL price and then the daily USD/CAD exchange rate.

**Staking and Validator Operations Risk Subsequent to September 30, 2024**

Subsequent to September 30, 2024, Sol Strategies has acquired seven validators, and now operates eight high-performance validators, three of which are on the Solana network. As a result of those acquisitions, the Company's validator and Solana staking businesses have developed significantly since the end of the fiscal year ended September 30, 2024, which businesses are subject to their own risk factors, including those described below.

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**Risks related to validator operations**

The Company expects that subsequent to the year ended September 30, 2024, a significant portion of the revenue generated by the Company will come from the awards realized by managing the Validators and by staking its own assets to such Validators. There is a risk that fewer third party Solana holders delegate their Solana to Sol Strategies' Validators, resulting in fewer awards and lower yields to the Company.

**Risks related to Staking Operations**

The Company operates eight Validators, seven of which were acquired subsequent to the year ended September 30, 2024, and three of which operate in the Solana network, and as such the Company earns crypto token rewards for processing transactions and securing crypto networks. The Company expects to, in large part, re-stake its crypto token rewards to its Validators. The Company's decision to stake an individual crypto token depends on a combination of network quality, network liquidity and expected staking compensation, the percentage of which varies from token to token. The compensation percentage is determined by a combination of a network's natural inflation rate, the transaction fees generated on the network, a token's price, and the percent of total tokens being staked. As such, the Company's compensation percentage may fall temporarily due to a short-term decline in transaction volume or an increase in the percent of crypto tokens being staked. The Company has no control over the compensation percentages of the various crypto tokens it chooses to stake, and the compensation percentage may fall below expected levels for temporarily or permanently. The compensation percentage is expected to decrease as sector activity increases and more crypto tokens are invested in specific tokens. Staking revenues could decrease to a level that materially and adversely affects the Company's staking assets and staking strategies, the value of its staking assets and the value of any investment in the Company.

**RETAIL FOCUSED PRODUCT LAUNCH**

Sol Strategies launched a mobile staking application available on Solana's dApp store, enabling retail users to connect self-custodial wallets directly to its validators for seamless staking. The app simplifies access to Solana's staking network and is expected to launch on the Apple App Store and Google Play in 2025, further expanding its reach and usability.

**PROPRIETARY SOLUTIONS AND INTELLECTUAL PROPERTY**

Sol Strategies has built and acquired a valuable portfolio of proprietary intellectual property, reinforcing our position as a technology-first company in blockchain innovation. This suite of tangible, high-impact tools include:

● **Real-Time Yield Calculators:** Advanced algorithms deliver precise, up-to-the-minute insights into staking rewards, empowering users with critical performance data.

● **Seamless Wallet-to-Validator Integrations:** Cutting-edge web technologies enable smooth, secure connections between user wallets and our validators, simplifying the staking process and enhancing accessibility.

● **Staking Reporting Dashboard:** The recently launched dashboard enhances transparency, offering users detailed analytics and performance metrics for their staking activity. The dashboard provides real-time visibility into all on-chain revenue, showcasing exactly how and where revenue is generated.

**ENTERPRISE-GRADE SECURITY and COMPLIANCE FRAMEWORKS**

● **ISO 27001 Certification Frameworks:** Rigorous security protocols designed to protect our infrastructure, user data, and validator operations, aligning with global best practices for information security.

**● Policy Documentation and Internal Auditing Tools:** Comprehensive compliance documentation, including standardized policies for governance, risk management, and operational security, which are regularly audited to maintain alignment with regulatory expectations.

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**CAPITAL MARKET EXPANSION**

● **Nasdaq and OTC Markets:** Sol Strategies has applied for a U.S. Nasdaq listing to broaden market visibility and expand access to institutional investors. The Company successfully upgraded to an OTCQX listing on January 21, 2025, significantly boosting U.S. trading volume and improving overall liquidity.

● **Revolving Credit Facility:** Secured a $25 million CAD revolving credit facility, providing financial flexibility to scale operations and seize strategic growth opportunities.

● **Private Placement Success:** Raised **$**30 million CAD, led by ParaFi Capital, demonstrating strong investor confidence in the Company's strategy.

**Enhanced Investor Relations and Market Liquidity**

Sol Strategies achieved higher trading volumes on both the CSE and OTC markets, reflecting growing investor interest. Additionally, the Company engaged Proconsul Capital, Ltd. to strengthen investor communication and outreach.

**KEY GROWTH PILARS**

● **Strong Liquidity Position:** With **$72 million CAD** in liquidity at the date hereof, Sol Strategies has the flexibility to acquire SOL, stake it for an expected yield of up to **10.36%<sup>(4)</sup>**, expand validator capacity, and invest in cutting-edge technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) based on publicly available data, see https://stakewiz.com/)

● **Profitable Validator Operations with High Gross Margins:** Sol Strategies operates a scalable and efficient validator network with minimal incremental costs. This high-margin business model generates reliable recurring revenue and positions the Company as a critical infrastructure provider within Solana's expanding ecosystem.

● **Technology Innovation:** Proprietary tools like real-time yield calculators, wallet integrations, and a non-custodial staking mobile app simplify the user experience and drive organic growth to validators.

● **Commitment to Compliance and Security**: Adhering to rigorous regulatory and cybersecurity standards is a core priority as we build trust with users and investors alike. Our compliance frameworks are designed to align with evolving regulations and include stringent measures such as our ISO 27001 certification, ensuring that our infrastructure operates securely, reliably, and in full alignment with the highest standards within the broader financial ecosystem.

In recent weeks, the digital asset sector has experienced significant momentum, driven by rising prices in SOL, BTC, and other key assets, alongside a positive shift in regulatory sentiment under a pro-crypto U.S. administration. This favorable environment reflects growing confidence in blockchain innovation and adoption, positioning Solana and the broader market for sustained growth and success.

The Solana network has firmly established itself as a leading blockchain protocol, celebrated for its unparalleled performance, scalability, and diverse use cases. Its transformative potential spans across industries such as payment processing, decentralized finance (DeFi), and cross-border foreign exchange solutions. Additionally, Solana is well-positioned to capture a significant share of the asset tokenization market, projected to reach $16 trillion by 2030.

In light of current market dynamics and expanding bridges to the traditional finance (TradFi) sector, we expect continually strong demand for the underlying layer 1 Solana (SOL) network token. Solana's unique capabilities enable it to disrupt existing financial applications, including real-world asset tokenization, share and micro-share trading, capital formation offerings, futures trading, foreign exchange trading, bond issuance, and derivatives trading.

As the first and largest publicly traded company exclusively focused on Solana in North America, Sol Strategies bridges the gap between traditional finance and blockchain innovation. Our company offers investors scalable, compliant exposure to this groundbreaking ecosystem. The strength and scalability of our validator operations, combined with our commitment to strategic innovation, position us to capitalize on Solana's transformative applications and ongoing growth.

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Investor confidence in the digital asset sector is accelerating, and Sol Strategies is uniquely positioned at the forefront of this evolution. By advancing our infrastructure, capitalizing on favorable market conditions, and driving innovation, we are committed to leading as the premier Solana-focused company and delivering enduring value for our investors.

**ACQUISITIONS AND STRATEGIC INVESTMENTS**

Strategic Investment

On January 6, 2025, the Company announced that it had amended the credit facility agreement with Antanas Guoga, the Company's Chairman and director, originally signed on October 22, 2024. The amended agreement increased the unsecured, revolving demand credit facility from $10 million to $25 million to be used exclusively for the purchase of Solana tokens.

Cogent Crypto Validators Acquisition

On November 25, 2024, the Company acquired four Validators operating in the Solana, Sui, Monad and Arch networks, and certain assets related to the Validators from Cogent Crypto for total consideration of (i) $1,000,000 USDC on Closing, (ii) the issuance of 1,162,000 Common Shares on closing at a price of CAD $1.20 per Common Share, and (iii) 18,592,000 Common Shares to be issued at a deemed price of CAD $1.20 per Common Share over a period of three years from closing. Cogent Crypto operates a high-performance validator operating within the Solana ecosystem, and also has validator assets operating in the SUI, MONAD, and ARCH network ecosystems, all of which are now operated by the Company.

OrangeFin Validators Acquisition

On December 31, 2024, the Company acquired three Validators operating in the Solana, Solana Testnet, and Arch Testnet networks, and certain assets related to the Validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services for consideration of (i) 750,000 USDC on closing, (ii) the issuance of 503,621 Common Shares at a deemed value of $2.14 per share on closing, and (iii) US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance), to be issued in six equal tranches every six months over a period of three years from closing In addition to the acquisition of Validators, Max Kaplan, founder of Orangefin Ventures, has joined as the Company's new Head of Staking.

ParaFi Private Placement

On January 16, 2025, the Company announced the completion of its private placement financing of CAD $27.5 million (the "Private Placement"), by ParaFi Capital (<u>https://parafi.com/</u>), a leading global blockchain investment firm. The proceeds from the Private Placement will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

The Private Placement consisted of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $27.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 common share purchase warrants (each, a "Warrant"). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or Common Shares and the Debentures are convertible at any time into Common Shares of the Company at CAD $2.50 per Common Share. Each Warrant entitles the holder thereof to purchase one (1) Common Share of the Company at an exercise price of CAD $2.50 per Common Share, exercisable at any time on or before January 16, 2030. The Debentures are redeemable in cash after the three year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Common Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants are subject to restrictions on trading until the date that is four months and a day following the closing date of the Private Placement.

On January 24, 2025, the Company announced the completion of a second tranche private placement on the same terms as the ParaFi Private Placement, except the second tranche was based on a $4.66 conversion and warrant exercise price. The second tranche brought the total gross proceeds received pursuant to private placement financing to CAD $30 million.

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**Long-term Incentive Plan**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire Common Shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of Common Shares subject to options granted under the Plan is limited to 10% in the aggregate of the number of issued and outstanding Common Shares of the Company at the date of the grant of the award. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the Company's board of directors which cannot exceed five years. The plan does not require any vesting period, and the Company's board of directors may specify a vesting period on a grant by grant basis.

**Hiring**

Recent additions to the Sol Strategies team include the following:

Leah Wald, Chief Executive Officer Ms. Wald was appointed Chief Executive Officer of Sol Strategies on July 9, 2024 and joined the Company's board of directors on September 13, 2021. Leah is an accomplished entrepreneur with deep expertise in alternative asset management and disruptive technologies. As Co-Founder and CEO of Valkyrie Investments, she led the firm to over $1.3 billion in AUM that included cryptocurrency trusts, hedge funds, and ETFs. Valkyrie's ETFs and investment advisory business was acquired by CoinShares and its private trust division by Abra Capital Management in 2024.

Andrew McDonald, Director of Operations. Mr. McDonald joined the Company on January 21, 2025. Andrew was previously the Chief Operating Officer of Bitaccess Inc. a Canadian SaaS company serving the Bitcoin ATM industry. Andrew helped to guide Bitaccess through an acquisition and oversaw its growth to be one of the world's largest Bitcoin ATM software providers.

Max Kaplan, Head of Staking on December 31, 2024. Max is the founder of Orangefin Ventures which was acquired by the Company on December 31, 2024. Prior to founding Orangefin Max was senior director of Engineering at Kraken.

Doug Harris, Chief Financial Officer. Mr Harris joined the Company as Chief Financial Officer on a full-time basis on January 1, 2025. Doug joined the Company as a part-time CFO in April 2021. Doug Harris is a Chartered Accountant (CPA, CA) and Chartered Business Valuator (CBV) with over 20 years of experience in finance. His expertise spans corporate finance, accounting, private equity, and M&A, with involvement in over $2 billion worth of transactions.

**Board Appointments**

Ungad Chadda was appointed to the board of directors of the Company on September 11, 2024 as an independent director. Mr. Chadda is a seasoned capital markets regulator and financial services executive, having held various senior positions at TMX Group Limited, the parent company of the Toronto Stock Exchange. During Mr. Chadda's tenure of over 21 years at TMX Group, he held progressively senior roles, including Director of Listings, TSX Venture Exchange; Chief Operating Officer, TSX Venture Exchange; Vice President, Business Development, Toronto Stock Exchange and TSX Venture Exchange; President, Toronto Stock Exchange; CFO of TSX Trust (formerly Equity Transfer and Trust) an OSFI regulated entity; and SVP, Head of Enterprise Corporate Strategy and External Affairs, TMX Group. Currently, Mr. Chadda serves as the CEO and Director of Urban Infrastructure Group Inc., a TSX Venture Exchange-listed company in the construction industry.

**Funding**

We believe our operating activities will continue to generate adequate cash flows to fund normal operations<u>.</u> However, we continually evaluate opportunities for us to maximize our growth and further enhance our strategic position, including, among other things, acquisitions, strategic alliances, and joint ventures potentially involving all types and combinations of equity, and acquisition alternatives. As a result, we may choose to raise additional funds to support those strategic initiatives.

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**Overall Performance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total comprehensive income of $9.3 million for the year ended September 30, 2024 (2023 - total comprehensive loss of $6.5 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income of $10.6 million for the year ended September 30, 2024 (2023 - loss of $4.5 million) including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking income of $271,245 for the year ended September 30, 2024 (2023 - $nil)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $1.2 million for the year ended September 30, 2024 (2023 - realized loss of $1.2 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Net income of $6.6 million for the year ended September 30, 2024 (2023 - loss of $6.3 million) and income per share (basic and diluted) for the year ended September 30, 2024 of $0.04 (2023 - loss per share of $0.04)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Cryptocurrency holdings of $25.6 million at September 30, 2024 (2023 - $7.9 million) reflecting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ 100,763.02 Sol with a market value of $20.8 million (2023 - $nil) and 56.25 bitcoin with a market value of $4.8 million (2023 - 215.37 bitcoin with a market value of $7.9 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Cash position of $1.8 million (September 30, 2023 - $1.9 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total assets of $28.9 million (September 30, 2023 - $17.1 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Shareholders' equity of $26.7 million (September 30, 2023 - $16.8 million)

**RESULTS OF OPERATIONS**

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| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2024** | **2023** | **2022** |
| Total assets | $28903645 | $17054245 | $23892055 |
| Shareholders' equity | 26723624 | 16827769 | 23583763 |
| Income | 10671027 | (4498715) | 3131499 |
| Net income | 6607664 | (6282328) | 358456 |
| EPS | $0.04 | $(0.04) | $0.00 |
| Comprehensive income | 9345023 | (6479174) | (5612877) |

---

*Comparison of the years ended September 30, 2024 and 2023*

The total comprehensive income for the year ended September 30, 2024 ("Fiscal 2024") increased $15,824,197 to $9,345,023 compared to a total comprehensive loss of $6,479,174 for the year ended September 30, 2023 ("Fiscal 2023"). The main reasons for the variance are as follows:

- Total investment income of $10,671,027 in Fiscal 2024 (2023 - loss of $4,498,715), an increase of $15,168,742, mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on dispositions of cryptocurrencies of $7,648,448 in Fiscal 2024 compared to $nil in Fiscal 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $1,160,891 in Fiscal 2024 compared to a realized loss of $1,178,765 in Fiscal 2023, mainly due to a realized gain on Animoca Brands Corporation Limited

("Animoca") of $1,785,473 offset by a loss realized on zkSNACKS Limited of $772,668. In Fiscal 2023 the Company realized losses of $471,116 on Isla Capital Limited AB Digital Strategies Fund ("Isla") and $707,649 on Lucy Labs Flagship Offshore Fund Rising Tide Portfolio ("Lucy Labs").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Unrealized gain on investments $1,064,911 in Fiscal 2024, an increase of $5,125,161 from a $4,060,250 unrealized loss in Fiscal 2023. The Fiscal 2024 unrealized gain was mainly due to a recovery of $827,227 on Lucy Labs and fair value increases of $121,849 and $$115,905 on Chia Network Inc. and NGRAVE NV, respectively. In Fiscal 2023 the unrealized loss of $4,060,250 was mainly due to an unrealized loss on Animoca of $4,314,020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Dividend income of $322,362 in Fiscal 2024 (2023 - $44,068) mainly due to increases in dividends from zkSNACKS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking and validating income of $271,245 in Fiscal 2024 (2023 - $nil).

- Operating expenses in Fiscal 2024 were $2,479,105 (2023 - $1,810,557), the increase of $668, 548 in operating losses was mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Stock-based compensation in Fiscal 2024 of $1,320,919 (2023 - $430,945), an increase of $889,974.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ General and administrative expenses in Fiscal 2024 of $344,096 (2023 - $198,052), an increase of $146,044

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Foreign exchange gain in Fiscal 2024 of $50,725 (2023 - loss of $346,669), a decrease of $397,394

- Income tax expense in Fiscal 2024 was $1,584,258 (2023 - recovery of $26,944), the increase mainly due to realized gains on the disposition of cryptocurrencies.

- In Fiscal 2024 the Other Comprehensive Income was $2,737,359 (2023 - loss of $196,846), an increase of $2,934,205, mainly due to the unrealized gain on cryptocurrencies.

**Selected Quarterly Information**

The selected quarterly information below summarizes the financial information for the last eight quarters.

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| | |
|:---|:---|
|  | **Jun-24** |
| Income (loss) before taxes | (1256003) |
| Tax Recovery (expense) | -) |
| Income (loss) for period | (1256003) |
| Net income (loss) per share (basic and diluted) | $(0.01) |
| Total comprehensive income (loss) | (1522924) |
| Total assets | 28354585 |
| Net book value | 27877248 |

---

*Comparison of the three months ended September 30, 2024 and 2023*

The total comprehensive loss for the three months ended September 30, 2024 ("Q4-24") increased $351,211 to a loss of $3,796,586 (2023 - $3,445,375) mainly due to:

- Reallocation of realized gain on disposition of cryptocurrencies of $7,648,448 from other comprehensive income to income in the fourth quarter of Fiscal 2024

- Staking income of $286,750 in Q4-24 ($2023 - $nil)

- Realized gain of $3,223,449 on the sale of Animoca shares in Q4-24 (2023 - $nil) offset by an unrealized loss on investments of $2,355,132

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ In Q4-24 operating expenses increased $1,564,083 million to $1,791,271, mainly due to the following:

- A $1,219,944 increase in stock based compensation to $1,239,083.

- A $156,374 increase in professional fees to $177,363

- A $76,149 increase in investor relations to $76,149

- A $68,426 increase in consulting fees to $169,256

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Provision for income taxes of $1,720,678 million (2023 - $nil)

---

| | |
|:---|:---|
| **Financial and Capital Management** |  |
| **Outstanding Share Data** |  |
| **At September 30, 2024** |  |
| Common shares outstanding: | 146173465 |
| Options to purchase common shares: | 14617346 |
| Warrants: | NIL |
| **At January 28, 2025** |  |
| Common shares outstanding: | 152363991 |
| Options to purchase common shares: | 10446941 |
| Warrants: | 11535000 |

---

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**Cash Flow**

For the year ended September 30, 2024, cash and cash equivalents decreased $119,228 (2023 - $16,609,941) to $1,808,052 (2023 - $1,927,280) due to $856,729 of net cash used in operating activities (2023 - $1,133,009), $767,961 of net cash used in financing activities (2023 - $707,765), and $1,505,462 of net cash provided by investing activities (2023 - $14,769,167 used in investing activities).

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements as of January 28, 2024 and as at the date of this MD&A.

**RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the year ended September 30, 2024, the Company paid $105,540 (2023 - $nil) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $1,209 (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $87,100 (2023 - $72,000) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $nil (2023 - $6,000) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $96,800 (2023 - $77,502) for consulting services provided by an officer of the Company. At September 30, 2024 there is $nil (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $111,100 (2023 - $120,000) for consulting services provided by an officer of the Company. At September 30, 2024, there is $9,900 (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $72,000 (2023 - $72,000) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $nil (2023 - $5,000) for consulting services provided by a director of the Company. At September 30, 2024, there is $nil of accounts payable to this related party (2023 - $nil).

During the year ended September 30, 2024, $104,160 (2023 - $63,223) was charged for legal services by a firm of which an officer of the Company is a partner. At September 30, 2024, there is $44,050 of accounts payable to this related party (2023 - $3,819).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

------

The compensation payable to current and former key management is shown below:

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| | | |
|:---|:---|:---|
| Years ended September 30, | **2024** | **2023** |
| Consulting fees | $**472540** | $346502 |
| Director fees | **30000** | 69213 |
| Stock-based compensation | **1320919** | 430945 |
|  | $**1821236** | $846660 |

---

At September 30, 2024, included in accounts payable and accrued liabilities is $55,156 (2023 - $10,295) owed to related parties.

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents, accounts payable and accrued liabilities are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

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| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies | - | 25575512 | - |
|  | $**-** | $**25575954** | $**1512889** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies | - | 7852418 | - |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

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*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the year ended September 30, 2024 and the year ended September 30, 2023.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | September 30, | September 30, | September 30, | September 30, |
|  | 2024 | 2023 | 2024 | 2024 |
| Investments | $1512889 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee of the Company includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at September 30, 2024 and noted that a 20% decrease would result in a $302,666 decrease in fair value.

**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Company's board of directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

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To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the year ended September 30, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Solana cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Sol Strategies is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Sol Strategies will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Sol Strategies performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

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**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When crypto assets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at September 30, 2024, the Company holds $1,808,052 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

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Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

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As at September 30, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $252,433 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of September 30, 2024 is $1,762,619 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $176,262 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at September 30, 2024, the Company had cash and cash equivalents balance of $1,808,052 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $232,929 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**OTHER INFORMATION**

This discussion and analysis of the financial position and results of operation as at January 28, 2025, should be read in conjunction with the consolidated financial statements for the year ended September 30, 2024 and 2023. Additional information can be accessed through the Company's public filings under the Company's SEDAR+ profile at www.sedarplus.ca.

**MANAGMENT'S RESPONSIBILITY FOR FINANCIAL INFORMATION**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

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Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

"Leah Wald"

Chief Executive Officer

January 28, 2025

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## Exhibit 99.74

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**Sol Strategies Releases Q4 2024 Shareholder Letter**

Toronto, Ontario--(Newsfile Corp. - January 29, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company") is a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem.

To Our Shareholders,

Since our rebrand to Sol Strategies Inc. ("Sol Strategies" or the "Company") in September 2024, we have transitioned from a Bitcoin holdings company to one focused on the Solana ecosystem. This shift represents an important milestone as we align with a blockchain network designed for scalability and efficiency, positioning Sol Strategies as a publicly traded vehicle for investors seeking exposure to Solana.

We have moved beyond a traditional NAV-based holding company model to a technology-driven strategy focused on building key infrastructure to support Solana's ecosystem. As of September 30, 2024, Sol Strategies operated one Solana validator with 101,200 SOL delegated, valued at $20.9 million<sup>(1)</sup>. By January 25, 2025, that number had increased to 1,729,599 SOL, valued at $634 million CAD<sup>(2)</sup>. These developments highlight the execution of our strategy and the value it aims to deliver to shareholders. Given the variability in staking revenues due to market conditions and factors such as validator uptime, assumptions may be required when discussing APYs and revenue growth. As such, forward-looking statements should be interpreted with caution.

**Driving Shareholder Value and Market Confidence**

This progress reflects the opportunities we provide for investors looking for exposure to Solana's ecosystem through a publicly traded company.

Our strategic accumulation of Solana (SOL) strengthens our position within the network while enhancing our balance sheet. As of January 24, 2025, our SOL holdings have grown to 160,710 SOL, further supporting our staking operations and generating recurring revenues at an expected APY of 10%<sup>(3)</sup>.

With the scalability of our validator operations, a liquidity position of $72 million CAD, and the expanding potential of Solana, we believe we are well-positioned to execute on growth initiatives.

**Key Achievements and Business Developments**

Our transformation into a technology-driven enterprise has defined a new chapter for Sol Strategies. We continue to develop a technology-driven platform with high-performance validators, user-friendly staking tools, and compliance frameworks.

* **Profitable Validator Operations:** Since launching in Q4, our validator business has expanded to support 1.73M SOL staked across multiple high-performance validators, reflecting an increase of 1,628,399 staked SOL since September 2024. This model allows for scalable operations with minimal incremental costs, making validator operations a core component of our business strategy.

* **Strategic Reallocation of Resources:** As of January 24, 2025, we have increased our SOL holdings to 160,710 SOL, while reducing Bitcoin exposure from 215.37 BTC to 3.16 BTC, reallocating resources to Solana-focused initiatives. Additionally, proceeds from liquidating Animoca Brands shares provided capital to reinvest into validator infrastructure and core business operations.

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* **Proprietary Technology and Innovation:** We are transforming into a technology-driven company, building innovative tools that elevate and redefine the staking experience. We have launched a retail-focused staking app on Solana's dApp store, enabling seamless wallet-to-validator connections for self-custodial users. Additionally, we have developed tools such as real-time yield calculators and advanced staking dashboards to provide users-both retail and institutional-with critical insights to optimize staking performance.

* **Commitment to Compliance:** Ensuring the security and regulatory integrity of our operations remains a priority. We have obtained ISO 27001 certification, reinforcing the security and reliability of our validator infrastructure. Additionally, we have implemented compliance frameworks designed to align with evolving regulatory standards, ensuring the protection of digital assets and validator operations. Our team brings extensive public market experience, including CFO Doug Harris's expertise in Canadian capital markets and audit roles, and the guidance of Ungad Chadda, former President of the TMX, on our audit committee.

* **Capital Markets and Liquidity:** On January 21, 2025, we upgraded to the OTCQX, increasing U.S. trading volume potential and improving liquidity. We have also applied for a Nasdaq listing to expand visibility and attract institutional investors. Additionally, we secured a $25M CAD revolving credit facility and raised $30M CAD in private placement funding led by ParaFi Capital, providing financial flexibility to scale operations and pursue strategic initiatives.

**Expanding Our Capabilities Through Acquisitions**

Our growth has been supported by key acquisitions that have strengthened our technology platform and staking operations. The acquisitions of **OrangeFin Ventures** and **Cogent Crypto** have enhanced our infrastructure and staking capabilities while securing intellectual property, such as compliance tools and user-friendly interfaces.

Technologies integrated from these acquisitions include:

* **Seamless wallet-to-validator connections**

* **Real-time yield calculators**

* **Intuitive performance dashboards**

These tools simplify staking while providing users with insights to manage their assets effectively. Additionally, our retail-focused staking app, launched on Solana's dApp store, enables self-custodial users to connect wallets directly to our validators. With plans to expand to Apple and Google Play in 2025, we aim to drive wider adoption and improve accessibility.

Leading this effort is **Max Kaplan, our Head of Staking**, whose expertise has been instrumental in optimizing our three high-performance validators for scalability, availability, and competitive yields. These validators, supporting **1.73M SOL staked as of January 24, 2025**, provide high-margin revenue streams while reinforcing our infrastructure to accommodate the continued growth of Solana's network.

Beyond these integrations, these acquisitions support our broader innovation strategy, enabling us to develop and acquire technologies that contribute to decentralized finance, payments, and asset tokenization. By prioritizing compliance, accessibility, and user experience, we aim to build foundational technologies that extend beyond validator services.

**Market Environment and Opportunity**

We are operating in a market environment where digital asset adoption continues to expand. The **scalability and efficiency of Solana** position it as a key blockchain protocol with significant potential across industries, including **payment processing and decentralized finance (DeFi)** <u>(Multicoin Capital, 2025)</u>.

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As one of the first and, in the Company's opinion, largest publicly traded **Solana-focused companies**, we believe we are well-positioned to capitalize on opportunities that bridge **traditional finance (TradFi) with blockchain technology** (<u>Galaxy Digital, 2024</u>).

The **recent pro-crypto stance of the U.S. administration** adds further optimism, signaling a **more favorable environment for blockchain adoption** (<u>Bloomberg, 2025</u>). Additionally, the potential introduction of **Solana-based ETFs**-both futures-based and the much-anticipated **spot ETFs**-could significantly improve market accessibility and liquidity (<u>JPMorgan, 2025</u>).

**We see opportunities for Solana's technology to expand into areas such as:**

* **Tokenization of real-world assets (** **<u>Franklin Templeton, 2024</u>** **).**

* **Stock and bond trading (** **<u>Nasdaq, 2024</u>** **).**

* **Capital formation offerings (** **<u>Solana Foundation, 2024</u>)**

* **Foreign exchange trading**<u>(</u><u>Bank of International Settlements, 2024)</u>.

* **Derivatives and futures markets** **<u>(CME Group, 2025)</u>** **.**

As confidence grows in the digital asset sector, supported by **improving market and regulatory conditions**, Sol Strategies remains committed to **advancing blockchain solutions** and expanding its role within the Solana ecosystem <u>(Multicoin Capital, 2025)</u>.

**Looking Ahead**

I would like to thank the investors, users of our technology, the Board of Directors, employees and the management team for their continued support. Our accomplishments since our rebrand and strategy shift demonstrate our ability to pivot, innovate, and thrive in a fast-evolving marketplace. As the interest in digital assets and more specifically Solana continue to grow, we are extremely excited and aim to continue to build strong technology in the Solana ecosystem, offering a compelling investment opportunity for those seeking exposure to Solana through a scalable, compliant and well-run, Solana-focused technology company.

**Sincerely,**

"Leah Wald"

*President & CEO*

**Sol Strategies Inc.**

**Notes:**

(1) See Consolidated Financial Statements for the years ended September 30, 2024 and 2023.

(2) Based on the closing price of Solana and the USDto CADexchange rate on January 24, 2025

(3) OrangeFin Ventures validator page at <u>https://stakewiz.com/</u>

**Our full financial statements and MD&A can be found on SEDAR+ and our website:**

* **MD&A:** **<u>SEDAR+ Link</u>**

* **Financial Statements:** **<u>SEDAR+ Link</u>**

* **Investor Page:** **<u>solstrategies.io/investors</u>**

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

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To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact: <u>sol@kcsa.com</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Private Placement and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

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None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

SOURCE: <u>Sol Strategies Inc.</u>

![](exhibit99-74x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/238827</u>

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## Exhibit 99.75

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**Sol Strategies Reports Strong Validator**

**Growth, Expansion of SOL Holdings and**

**Resignation of Director**

Toronto, Ontario--(Newsfile Corp. - February 3, 2025) - **Sol Strategies Inc.** (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc.) (the "**Company**"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, is pleased to provide an update on its recent operational milestones and strategic initiatives. Following its acquisition of OrangeFin Ventures and Cogent Crypto, Sol Strategies has successfully expanded its validator operations, increased SOL delegation, deployed the next-generation Firedancer validator client, and made further strategic purchases of SOL. The Company also announces a leadership transition, as Moe Adham steps down from the Board of Directors.

**Validation Milestones**

January marks the first full month of validator operations after its acquisition of OrangeFin Ventures and Cogent Crypto. During the month of January, the Company saw the total SOL delegation across its three mainnet Solana validators grow from 1.57M SOL to approximately 1.77M SOL, of an increase of approximately 200,000 SOL, of which 166,000 SOL are new delegations from third parties.

The company also successfully deployed the new Firedancer validator client on two of its Solana Validators, further solidifying its position as a leader in the Solana Validation sector. For Solana, the launch of Firedancer is a pivotal moment, addressing key areas of improvement in transactions per second, network resilience and resource efficiency. Having been in development since 2022, the launch of Firedancer demonstrates the continued technological superiority of the Solana network. The performance of Firedancer has already exceeded the Company's expectations. Sol Strategies is proud to be one of the first validators running this client on the Solana Network and will continue to monitor its performance for further deployment.

**SOL purchases**

Between January 19<sup>th</sup>, 2025 and January 31, 2025, the Company completed the purchase of an additional 40,300 SOL for approximately CAD$14,337,332 (US$9,935,329), at an average price of CAD$355.77 per SOL (USD $246.53), inclusive of fees and expenses.

The Company also completed the $2.5 million second tranche of a private placement of convertible debentures (see press release dated January 24, 2025), the gross proceeds of which were satisfied by the payment of 6,564.47 SOL, at an average price of C$380.84 SOL (US$265.65 SOL).

As of January 31, 2025, Sol Strategies and its subsidiaries held an aggregate of approximately 189,968 SOL, acquired at a total purchase price of approximately $48.7 million CAD, with an average purchase price of approximately $256.21 CAD per SOL, inclusive of fees and expenses, with a value of $63.7 million CAD based on the closing price of SOL on January 31, 2025.

**Management Updates**

The company announces that Mr. Moe Adham, a director and Chief Investment Officer, has resigned effective January 30, 2025, due to personal circumstances. Since joining the Board of Directors in 2018, Mr. Adham has played an integral role in its growth and success. He will continue to advise the Company on strategic initiatives in the near term.

Mr. Adham stated, "While I am saddened to depart from Sol Strategies, I am immensely proud of the Company's achievements under Leah Wald's leadership as CEO. I am confident that the Company is in capable hands and will continue to thrive in the Solana ecosystem. My family's relocation to Tokyo has necessitated this decision, as the time zone difference would hinder my ability to effectively support the business. I have the utmost confidence in the management and direction of Sol Strategies and could not be prouder of the team. I am pleased to continue advising the Company during this transition to ensure the continued excellence of execution."

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Tony Guoga, Chairman of the Board, added, "On behalf of the Board and the entire Company, I want to sincerely thank Moe for his years of dedication and leadership. It has been a pleasure working with him, and we wish him and his family all the best in their move to Tokyo. Sol Strategies has never been in a stronger position from both a management and market perspective, and we remain fully confident in our trajectory for 2025 and beyond. With the recent addition of Ungad Chadda to the Board in late 2024, we are well-positioned to continue executing our vision."

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

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**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE**: Sol Strategies

**Media contact:** **<u>sol@kcsa.com</u>**

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/239380</u>

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## Exhibit 99.76

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**Sol Strategies Announces Option Grant**

Toronto, Ontario--(Newsfile Corp. - February 4, 2025) - **Sol Strategies Inc.** (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a publicly traded, Canadian holding company that invests in the Solana blockchain and ecosystem, announces that it effective January 31, 2025, it granted an aggregate of 400,000 stock options to purchase common shares (the "**Shares**") in the capital of the Company exercisable at a price of $4.91 per Share for a period of five (5) years to certain directors and consultants of the Company (the "**Option Grant**"). The Shares issuable upon exercise of the options are subject to a four month hold period from the original date of grant.

In connection with the Option Grant, the Company filed a Form 11 with the CSE - Notice of Proposed Stock Option Grant or Amendment reflecting the exercise price of $4.91.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

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**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE**: Sol Strategies

**Media contact**: <u>solstrategies@mgroupsc.com</u>

SOURCE: <u>Sol Strategies Inc.</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/239638</u>

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## Exhibit 99.77

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**Sol Strategies Purchases 24,374 SOL,<br>Increases Total SOL Holdings by CAD $7.3<br>Million to 214,342 SOL**

Toronto, Ontario--(Newsfile Corp. - February 10, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company") is a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, has made additional strategic purchases of SOL as part of its ongoing growth initiatives.

Between January 31, 2025 and February 7, 2025, the Company completed the purchase of an additional 24,374 new SOL for approximately CAD $7,278,994 (USD $5,053,303), at an average price of CAD $298.64 per SOL (USD $207.33), inclusive of fees and expenses.

As of February 7, 2025, Sol Strategies and its subsidiaries held an aggregate of approximately 214,342 SOL, acquired at a total purchase price of approximately CAD $55.6 million (USD $39.5 million) with an average purchase price of approximately CAD $259.37 per SOL (USD $184.36), inclusive of fees and expenses, with a value of CAD $58.9 million (USD $41.2 million) based on the closing price of USD $192.2 per SOL on February 7, 2025.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

![](exhibit99-77x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/240237</u>

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## Exhibit 99.78

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**Sol Strategies Selected as Staking Provider<br>for North America's 3iQ Staked Solana ETF**

Toronto, Ontario--(Newsfile Corp. - February 11, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company") is a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced its selection as staking provider for 3iQ Corp.'s ("3iQ") <u>Solana Staking ETF</u> (the "Fund"). Sol Strategies' non-binding Memorandum of Understanding ("MOU") with 3iQ, a leader in digital asset investment solutions, is a major step forward in expanding institutional adoption of Solana staking.

Pursuant to the MOU, signed February 7, 2025, Sol Strategies agrees to invest the lesser of $15 million or 33.33% of total assets of the Fund on the Fund's launch date, which must remain invested in the Fund for a minimum of three months.

"Sol Strategies' institutional-grade infrastructure and proven track record in this ecosystem made them the clear choice," said Pascal St-Jean, CEO and President at 3iQ. "Their compliance framework and validator performance align perfectly with our commitment to providing regulated, secure digital asset exposure to investors."

This partnership with 3iQ comes at a time of tremendous momentum for Sol Strategies as it expands its institutional Solana staking. "Being selected as 3iQ's staking partner validates our infrastructure and demonstrates the growing demand for regulated staking solutions," said Leah Wald, CEO of Sol Strategies. "This partnership represents a pivotal moment for institutional Solana staking, allowing traditional investors to access staking rewards through a regulated investment vehicle."

Recent growth highlights include:

* Expansion to 1.64M SOL in total delegation across three validators

* Increase in SOL holdings to 218,903 SOL, which is staked to the Company's own validators, generating recurring revenue and further strengthening the Company's staking capacity

* Sol Strategies has successfully deployed two Firedancer validators, enhancing Solana's performance, security, and decentralization while strengthening its staking operations. In addition, publishing its first technical blog post detailing how to expose the Firedancer interface securely, which anyone can view and watch the validator build blocks in real time. The Company has also upgraded to Jito 2.1, a huge upgrade which has greatly improved the speed of Solana

* With $72M CAD in liquidity (as detailed in the latest MD&A, available on Sol Strategies' <u>Investor Page</u> and SEDAR+), Sol Strategies continues its systematic SOL accumulation and strategic expansion, reinforcing its staking operations and long-term growth

With institutional demand for Solana exposure growing, Sol Strategies continues to solidify its position as the leading publicly traded company focused on Solana, driving innovation and value creation for our shareholders.

**About Sol Strategies**

Sol Strategies is a publicly traded holding company committed to the continued development of the Solana blockchain and ecosystem through its private equity and financial markets activities. Sol Strategies seeks to leverage investment opportunities in staking rewards and Solana-based projects, allowing shareholders to indirectly participate in decentralized finance. The Company is headquartered in Toronto, Canada, and is publicly listed on the Canadian Securities Exchange under the ticker HODL and on the OTC market under the ticker CYFRF.

------

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company change report may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About 3iQ Corp.**

Founded in 2012, 3iQ is one of the world's leading alternative digital asset managers, pioneering institutional-grade investments. 3iQ launched the world's first Digital Assets Managed Account Platform (QMAP), a hedge fund investment solution, offering innovative risk managed investment solutions to gain exposure to digital assets. 3iQ was also the first to launch a Bitcoin ETP listed on a major global stock exchange, the 3iQ Bitcoin ETF (TSX: BTCQ) (TSX: BTCQ.U) and offers other regulated ETPs. In 2024, Monex Group, a leading Japanese financial group, took a majority stake in 3iQ. Since 2012, 3iQ has been at the forefront of innovation in digital asset investment management. To learn more about 3iQ, visit <u>3iq.io</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any

------

statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

SOURCE: Sol Strategies

Media contact: <u>sol@kcsa.com</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/240405</u>

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## Exhibit 99.79

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**Sol Strategies Announces Letter of Intent to<br>Acquire High-Performance Validators for USD<br>$34 Million**

Toronto, Ontario--(Newsfile Corp. - February 14, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced that on February 14, 2025, it entered into a non-binding letter of intent to acquire one of Solana ecosystem's largest validators. The Proposed Transaction would increase the amount of SOL delegated to Sol Strategies-owned Solana validators to over 2.9 million SOL (CAD $800 million), an increase of over 1.2 million SOL, enabling Sol Strategies to earn revenue on this delegation.

The USD $34 million (CAD $48.7 million) total consideration payable pursuant to the Proposed Transaction is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) USD $10 million (CAD $14.3 million) in cash, payable at close;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) USD $12 million (CAD $17.2 million) in Sol Strategies shares, issued at closing; and,

&nbsp;&nbsp;&nbsp;&nbsp;(iii) USD $12 million (CAD $17.2 million) in Sol Strategies common shares, issued on the one year anniversary of the closing date (CAD $17.2 million).

Completion of the Proposed Transaction is subject to customary conditions including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company and the Vendor entering into a definitive agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) receipt of all required consents.

There are no finder's fees payable in connection with the Proposed Transaction.

The estimated yearly contribution to net income from the Proposed Transaction is CAD $8,600,000, showcasing the potential of the validator's economic contributions to Sol Strategies' business model.

*The Canadian dollar (CAD) amounts in this news release are based on cryptocurrency price rates from Coinbase on February 14, 2025.*

*Net income calculations are based on <u>SVT One Dashboard</u> and are subject to change due to market volatility and network conditions.*

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

------

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the completion of the Proposed Transaction and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**SOURCE:** Sol Strategies

**Media Contact:** **<u>sol@kcsa.com</u>**

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![](exhibit99-79x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/240978</u>

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## Exhibit 99.80

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**Sol Strategies Purchases 12,456 SOL,<br>Increases Total SOL Holdings by CAD $3.6<br>Million to 226,798 SOL**

Toronto, Ontario--(Newsfile Corp. - February 18, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company") a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, has made additional strategic purchases of SOL as part of its ongoing growth initiatives.

Between February 7, 2025, and February 14, 2025, the Company completed the purchase of an additional 12,456 new SOL for approximately CAD $3,593,400, at an average price of CAD $288.48 per SOL, inclusive of fees and expenses.

As of February 14, 2025, Sol Strategies and its subsidiaries held an aggregate of approximately 226,798 SOL, acquired at a total purchase price of approximately CAD $59.2 million with an average purchase price of approximately CAD $260.94 per SOL, inclusive of fees and expenses, with a value of CAD $64.2 million based on the closing price of USD $199.94 per SOL on February 14, 2025.

*The Canadian dollar (CAD) amounts in this news release are based on cryptocurrency price rates from Coinbase and Bank of Canada foreign exchange rates on February 14, 2025.*

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u> . A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the purchase of Solana and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information, or action.

**Officer/Director Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media Contact:** sol@kcsa.com

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/241283</u>

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## Exhibit 99.81

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![](exhibit99-81x001.jpg)

February 12, 2025

Alberta Securities Commission

British Columbia Securities Commission

Manitoba Securities Commission

Ontario Securities Commission

Financial and Consumer Affairs Authority of Saskatchewan

**SOL STRATEGIES INC. - NOTICE OF CHANGE OF AUDITORS**

Dear Sirs/Mesdames:

We acknowledge receipt of a Notice of Change of Auditor (the "Notice") dated February 6, 2025, delivered to us by the Corporation in respect of the change of auditor of the Corporation. In accordance with section 4.11 of National Instrument 51-102 - Continuous Disclosure Obligations, we have reviewed the information contained in the Notice and we agree with each of the statements contained therein pertaining to our firm.

Yours truly,<br>

*/s/ Kingston Ross Pasnak LLP*

***Kingston Ross Pasnak LLP***

Charted Professional Accountants

![](exhibit99-81x002.jpg)

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## Exhibit 99.82

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![](exhibit99-82x001.jpg)

February 6, 2025

**Alberta Securities Commission**

**British Columbia Securities Commission**

**Manitoba Securities Commission**

**Ontario Securities Commission**

**Financial and Consumer Affairs Authority of Saskatchewan**

Dear Sirs / Mesdames:

---

| | |
|:---|:---|
| **Re:** | **Sol Strategies Inc. (the "Company")** |
| | **Notice Pursuant to NI 51-102 - Change of Auditor** |

---

As required by the National Instrument 51-102 and in connection with our proposed engagement as auditor of the Company, we have reviewed the information contained in the Company's Notice of Change of Auditor, dated February 6, 2025 (the "Notice"), and, based on our knowledge of such information at this time, we agree with the information contained in the Notice pertaining to our firm.

Yours very truly,

*/s/ DAVIDSON & COMPANY LLP*

**DAVIDSON & COMPANY LLP**

Chartered Professional Accountants

**cc: The Canadian Securities Exchange**

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## Exhibit 99.83

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**SOL STRATEGIES INC.**

**NOTICE OF CHANGE OF AUDITORS**

**TO:** Alberta Securities Commission

British Columbia Securities Commission

Manitoba Securities Commission

Ontario Securities Commission

Financial and Consumer Affairs Authority of Saskatchewan

**AND TO:** Kingston Ross Pasnak LLP

Davidson & Company LLP

Sol Strategies Inc. (the "**Corporation**"), gives the following notice in accordance with Section 4.11 of National Instrument 51-102 *- Continuous Disclosure Obligations* ("**NI 51-102**"):

1. At the request of the Corporation, Kingston Ross Pasnak LLP (the "**Former Auditor**") has resigned as auditor of the Corporation effective January 29, 2025.

2. On January 29, 2025, the Corporation appointed Davidson & Company LLP (the "**Successor Auditor**") to replace the Former Auditor as auditor of the Corporation.

3. The resignation of the Former Auditor and the appointment of the Successor Auditor were considered and approved by the Corporation's Audit Committee and Board of Directors.

4. The auditor's reports of the Former Auditor, on the financial statements of the Corporation for the fiscal years ended September 30, 2024 and September 30, 2023, respectively, and for any subsequent period ending prior to the date of resignation did not express a modified opinion.

5. In the opinion of the Corporation, no "reportable event" as defined in NI 51-102 has occurred.

6. The contents of this Notice and letters written by the Former Auditor addressed to the applicable Canadian securities regulatory authorities pursuant to Sections 4.11(5) and 4.11(6) of NI 51-102 have been reviewed by the Corporation's Audit Committee and the Board of Directors.

Dated February 12, 2025.

**SOL STRATEGIES INC.**

*Per: <u>"Doug Harris"</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Doug Harris

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Financial Officer

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## Exhibit 99.84

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**Sol Strategies Selected as Staking Provider for Tetra Trust's Digital Asset Platform**

Toronto, Ontario--(Newsfile Corp. - February 20, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced its selection as an approved staking provider for Tetra Trust ("Tetra"), Canada's First Licensed Digital Asset Trust Company. This integration enables Tetra's institutional clients, including 3iQ's upcoming Solana Staking ETF, to access Sol Strategies' validator infrastructure directly through Tetra's custody platform.

"Being selected as a staking provider for Tetra's platform marks another significant milestone in institutional Solana adoption," said Leah Wald, CEO of Sol Strategies. "This integration creates a seamless experience for institutional clients seeking secure, regulated access to Solana staking."

Tetra Trust, a regulated trust company under the Loan and Trust Corporation Act of Alberta, provides custody solutions for many of Canada's leading digital asset investment products. "Sol Strategies' proven track record in institutional staking infrastructure made them an ideal addition to our platform," said Didier Lavallée, CEO at Tetra Trust. "This integration enhances our ability to provide comprehensive digital asset services to our institutional clients."

The partnership builds on Sol Strategies' recent selection as the staking provider for 3iQ's Solana Staking ETF, which will utilize Tetra's custody platform.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Tetra Trust**

Founded in 2019, Tetra is Canada's first licensed and largest digital asset custodian. Our platform provides enterprise-grade custody of digital assets and auxiliary services for institutional clients. Backed by WonderFi, Urbana Corporation, Canadian Securities Exchange, Icebook Investments Corp and Coinbase Ventures, Tetra provides a solution to one of the last remaining problems preventing institutional adoption of the digital asset industry-custody.

To learn more about Tetra Trust, please visit <u>www.tetratrust.com</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the provision of staking services and its intended impact on the Company. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

Doug Harris

Chief Financial Officer <br>doug@solstrategies.io <br>Tel: 416-480-2488<br>**SOURCE:** Sol Strategies

**Media Contact:** **<u>sol@kcsa.com</u>**

------

![](exhibit99-84x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/241605</u>

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## Exhibit 99.85

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**Sol Strategies Secures Exclusive Institutional Staking Partnership with Neptune Digital Assets**

Toronto, Ontario--(Newsfile Corp. - February 24, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (FSE: 1X00) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company") today announced a new institutional staking partnership with Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) ("Neptune"), a blockchain leader in Canada, further expanding its growing network of institutional validators.

Under this innovative agreement, Sol Strategies will share a portion of validator block rewards with Neptune, establishing a distinctive value proposition in the institutional staking market. This innovative approach aligns interests between validators and institutional partners while maintaining the security and decentralization of the Solana network.

"We're seeing increasing demand from organizations looking for secure, compliant staking solutions," said Leah Wald, CEO of Sol Strategies. "This partnership further validates our infrastructure and demonstrates the growing institutional adoption of Solana staking."

"Sol Strategies' proven track record and robust infrastructure made them the clear choice for our staking needs," said Cale Moodie, CEO of Neptune. "This agreement further strengthens Neptune's growing staking portfolio and will drive additional revenue as we continue expanding our asset base."

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (FSE: 1X00) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Neptune Digital Assets Corp.**

Neptune Digital Assets Corp. (TSXV: NDA) (OTCQB: NPPTF) (FSE: 1NW) is one of the first publicly traded blockchain companies in Canada and is at the forefront of the cryptocurrency and blockchain landscape. Neptune engages in operations across the digital asset ecosystem including Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance (DeFi), and other associated cutting-edge technology. Our unwavering commitment to innovation and strategic growth enables us to continually explore new opportunities and maximize value for our shareholders. For more information about Neptune Digital Assets Corp., please visit our website at <u>www.neptunedigitalassets.com</u> or follow us on X (<u>@NeptuneDAC</u>).

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

------

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the company's future strategic and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488 <br>**SOURCE:** Sol Strategies

**Media Contact:** **<u>sol@kcsa.com</u>**

------

![](exhibit99-85x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/242060</u>

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## Exhibit 99.86

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**Sol Strategies to Announce First Quarter 2025 Financial Results on March 3, 2025, Provides Update on SOL Purchases and Investor Relations Firm Engagement**

Toronto, Ontario--(Newsfile Corp. - February 25, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced it will release its financial results for the first quarter of 2025 on Monday, March 3, 2025, at 4:30 PM EST.

CEO Leah Wald, CFO Doug Harris and CTO Max Kaplan will host a webcast and conference call to discuss the results following the release. Participants will have the opportunity to ask questions during the call.

**Event Details:**

**Sol Strategies First Quarter 2025 Financial Results Webcast and Conference Call Webcast Date**: Monday, March 3, 2025, at 4:30 PM EST

**Live Call**: (800) 579-2543 Primary (US) or (785) 424-1789 (International)

**Webcast**: <u>https://event.on24.com/wcc/r/4865360/01F517A968FAF5655FC127A1EACBE989</u>

A replay of the webcast will be available on the company's investor relations website shortly after the event <u>https://solstrategies.io/investors/</u>.

**Recent SOL Purchases Update**

For the **week ending February 23, 2025**, Sol Strategies acquired 10,354 SOL for a total of $1,749,980 USD, reflecting an average purchase price of $169.01 USD per SOL. This continued accumulation aligns with the Company's strategy of expanding its SOL holdings to support its validator operations and long-term investment approach in the Solana ecosystem.

**Investor Relations Firm Engagement**

The Company also announces that effective February 25, 2025 it has engaged ICR, LLC ("ICR") to provide certain investor relations services to the Company, including preparations for earnings reports, messaging development and execution, analyst engagement, investor targeting, which may include the distribution of information relating to the Company through digital, email and influencer marketing, development of investor relations infrastructure and best practices, and the provision of market research and intelligence.

ICR is engaged for an initial six month term, after which either the Company or ICR may terminate the engagement on 60 days' notice. In consideration for these services, ICR will be paid a US$30,000 retainer and a monthly fee of US$15,000. ICR is led by John Sorensen out of 761 Main Avenue, Norwalk, Connecticut, 06851 (email: legal@icrinc.com; telephone: (203) 682-8200). ICR and Mr. Sorensen are at arm's length to the Company and neither owns any shares of the Company.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

------

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact: <u>sol@kcsa.com</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the timing for the Company's release of its financial results and the services to be undertaken by ICR. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

------

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-86x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/242278</u>

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## Exhibit 99.87

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**Sol Strategies Appoints Luis Berruga to Board of Directors**

**Berruga's two decades of traditional finance and ETF expertise and leadership will bolster Sol Strategies' mission to develop the premier institutional Solana Staking platform**

Toronto, Ontario--(Newsfile Corp. - March 3, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced the appointment of **Luis Berruga**, Founder and Managing Partner of LBS Capital, to its Board of Directors. With over 20 years of expertise and leadership in global ETF markets and traditional finance, Berruga's extensive experience in ETF's and asset management is expected to provide critical insights and business development opportunities as Sol Strategies continues its growth trajectory and advances the development of its institutional Solana Staking platform.

"We are honored to welcome **Luis** to our Board of Directors," said Sol Strategies CEO Leah Wald. "Mr. Berruga's deep expertise in global asset management and institutional asset management will bring invaluable guidance as we continue to execute our strategic growth plans. From entrepreneurial achievements at LBS Capital, where he advises leaders in the wealth and asset management industry, to his leadership at Global X ETF's, Luis has demonstrated a remarkable ability to drive sustainable growth while advancing innovative investment product solutions. His contributions and deep rolodex of relationships will play a vital role as we scale our operations and accelerate the development of the world's premier institutional grade staking platform for the Solana ecosystem."

During his 10-year tenure at Global X ETFs, Berruga held several senior executive roles, including CEO and chairman of the board of the company's global operations, Board Member of Global X Funds, President and Chief Operating Officer, and Chief Financial Officer. In these capacities, he led operations and oversaw, designed, managed and successfully implemented all aspects of the infrastructure buildout necessary to support a fast-growing ETF business that rapidly increased assets under management from $2bn at the beginning of 2014 to $45bn at the end of 2023 in the US and $80bn globally. Since leaving Global X, Berruga founded and leads LBS Capital, a boutique investment firm and advisory business specializing in Exchange Traded Funds (ETFs) and corporate governance that partners with a select group of C-level executives in the wealth and asset management industry.

"It is a privilege to join Sol Strategies' Board of Directors and contribute to its groundbreaking work in developing technology and infrastructure for the rapidly growing Solana Ecosystem," said Berruga. "Throughout my career, I've been passionate about the global asset management business, and Sol Strategies' innovative staking platform represents a critical advancement in the institutional adoption of digital assets. I look forward to supporting the company's efforts to scale its business through its innovative technology solutions and strategic partnerships and acquisition strategy."

Berruga's appointment increases Sol Strategies' Board of Directors to six members, reinforcing the Company's commitment to strong governance and diverse leadership. His extensive expertise in traditional asset management and deep relationships with global business leaders aligns closely with Sol Strategies' vision to create a leading institutional Solana staking platform through a combination of proprietary technology solutions and strategic partnerships and acquisitions.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

------

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact: <u>sol@kcsa.com</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the appointment of Mr. Berruga. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

------

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-87x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/243101</u>

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## Exhibit 99.88

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![](exhibit99-88x001.jpg)

**(Formerly Cypherpunk Holdings Inc.)**

**INTERIM UNAUDITED CONDENSED FINANCIAL**

**STATEMENTS**

**FOR THE THREE MONTHS ENDED**

**DECEMBER 31, 2024 AND 2023**

**(Expressed in Canadian Dollars)**

------

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying unaudited interim unaudited condensed consolidated financial statements of Sol Strategies Inc. (formerly Cypherpunk Holdings Inc.) for the three months ended December 31, 2024 (the "Interim Statements) were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the note 2 of these Interim Statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at December 31, 2024.

**CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES**

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officers, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at December 31, 2024.

**NOTICE TO READER**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying Interim Statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these Interim Statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of financial statements by an entity's auditor.

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 3) | $**1279322** | $1808052 |
| Prepaid expenses | **58275** | 6750 |
|  | **1337597** | 1814802 |
| Cryptocurrencies (note 4) | **38561505** | 25575512 |
| Intangible assets (note 5) | **33768545** |  |
| Investments (note 6) | **685662** | 1513331 |
| Goodwill (note 14) | **278868** | - |
|  | $**74632177** | $28903645 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (notes 7 and 16) | $**561585** | $232929 |
| Income taxes payable (note 8) | **2710699** | 1547686 |
| Financial liability - future share issuance (note 9) | **2311793** |  |
| Credit facility (note 10) | **4156214** | - |
|  | **9740291** | 1780615 |
| Long-term liabilities |  |  |
| Financial liability - future share issuance (note 9) | **4294768** |  |
| Deferred tax liability (note 20) | **399406** | 399406 |
|  | **14434465** | 2180021 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 11) | **20154351** | 17256668 |
| Reserves (notes 12, 13 and 14) | **40047329** | 17297454 |
| Accumulated other comprehensive income (loss) | **7141327** | 2540513 |
| Accumulated deficit | **(7145295)** | (10371011) |
|  | **60197712** | 26723624 |
|  | $**74632177** | $28903645 |
| Nature of operations and going concern (note 1) |  |  |
| Subsequent events (note 19) |  |  |

---

---

| | |
|:---|:---|
| SIGNED ON BEHALF OF THE BOARD |  |
| *(Signed) "Ungad Chadda"* | *(Signed) " Rubsun Ho"* |
| Director | Director |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Three months ended December 31,** | **2024** | 2023 |
| **Income (loss)** |  |  |
| Realized gain on dispositions of cryptocurrencies (note 4) | $**4430368** | $- |
| Staking and validating income (note 15) | **1244849** |  |
| Other income | **11990** | 10451 |
| Realized gain (loss) on investments (note 6) | **(442)** | 270661 |
| Unrealized gain (loss) on investments (note 6) | **-** | 2649011 |
| Dividend income | **-** | 2613 |
|  | **5686765** | 2932736 |
| **Expenses** |  |  |
| Share based compensation (notes 12 and 16) | **628796** | 38076 |
| Professional fees (note 16) | **273063** | 44466 |
| Consulting fees (note 16) | **242708** | 106360 |
| Investor relations | **154350** |  |
| Listing fees | **56446** |  |
| General and administrative | **51543** | 39407 |
| Amortization (note 5) | **50082** | 7909 |
| Interest expense | **32863** |  |
| Director fees (note 16) | **11668** | 10298 |
| Foreign exchange (gain) loss | **(203483)** | 44217 |
|  | **1298036** | 290733 |
| **Income before taxes** | **4388729** | 2642003 |
| Provision for income tax (note 8) | **1163013** |  |
| Income tax expense | **1163013** |  |
| **Net income for the period** | **3225716** | 2642003 |
| **Other comprehensive income** |  |  |
| Unrealized gain on cryptocurrencies (note 6) | **4600814** | 4284251 |
| **Total comprehensive income** | $**7826530** | $6926254 |
| **Net income per share (note 11(c))** |  |  |
| &nbsp;&nbsp;Basic | $**0.02** | $0.02 |
| &nbsp;&nbsp;Diluted | $**0.02** | $0.02 |
| **Weighted average number of shares outstanding (note 11(c))** |  |  |
| &nbsp;&nbsp;Basic | **147249194** | 152067183 |
| &nbsp;&nbsp;Diluted | **160422415** | 154505683 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Balance, September 30, 2023** | **152067183** | $**17864782** | $**17669046** | $**(196846)** | $**(18509213)** | $**16827769** |
| Stock-based compensation |  |  | 38076 |  |  | 38076 |
| Net income for the period |  |  |  |  | 2642003 | 2642003 |
| Items that may be reclassified to profit or loss |  |  |  | 4284251 |  | 4284251 |
| Items reclassified to retained earnings |  |  |  | (4773) | 4773 |  |
| **Balance, December 31, 2023** | **152067183** | **17864782** | **17707122** | **4082632** | **(15862437)** | **23792099** |
| Share based compensation (note 12) |  |  | 1282843 |  |  | 1282843 |
| Options exercised (note 12) | 1709625 | 170963 |  |  |  | 170963 |
| Fair value of options exercised (note 12) |  | 159847 | (159847) |  |  |  |
| Options cancelled and expired (note 12) |  |  | (1532664) |  | 1532664 |  |
| Purchase of shares for cancellation (note 11) | (7603343) | (938924) |  |  |  | (938924) |
| Dissolution of subsidiary (note 17) |  |  |  |  | (2126) | (2126) |
| Net income for the period |  |  |  |  | 3965661 | 3965661 |
| Items that may be reclassified to profit or loss |  |  |  | (1542119) | (4773) | (1546892) |
| **Balance, September 30, 2024** | **146173465** | **17256668** | **17297454** | **2540513** | **(10371011)** | **26723624** |
| Share based compensation (note 12) |  |  | 628796 |  |  | 628796 |
| Options exercised (note 12) | 1798625 | 236213 |  |  |  | 236213 |
| Fair value of options exercised (note 12) |  | 189321 | (189321) |  |  |  |
| Shares issued for acquisitions (note 5) | 1665621 | 2472149 |  |  |  | 2472149 |
| Shares to be issued for acquisitions (note 14) |  |  | 22310400 |  |  | 22310400 |
| Net income for the period |  |  |  |  | 3225716 | 3225716 |
| Items that may be reclassified to profit or loss |  |  |  | 4600814 |  | 4600814 |
| **Balance, December 31, 2024** | **149637711** | $**20154351** | $**40047329** | $**7141327** | $**(7145295)** | $**60197712** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.) <br>INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Three months ending December 31,** | **2024** | **2023** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| Income (loss) for the period | $**3225716** | $2642003 |
| **Adjustments for:** |  |  |
| Realized (gain) loss on cryptocurrencies | **(4430368)** |  |
| Staking and validating income | **(1244849)** |  |
| Realized (gain) loss on investments | **442** |  |
| Unrealized (gain) loss on investments | **-** | (2649001) |
| Expenses paid with cryptocurrencies | **25505** |  |
| Stock-based compensation | **628796** | 38076 |
| Amortization | **50082** | 7909 |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **(51525)** | 9529 |
| Accounts payable and accrued liabilities | **328656** | (53584) |
| Income taxes payable | **1163013** | - |
| **Cash used in operating activities** | **(304532)** | (5068) |
| **Financing activities** |  |  |
| Exercise of options and warrants | **236213** |  |
| Loan payable | **4156214** |  |
| Cryptocurrencies used to acquire intangible assets | **2334385** |  |
| Share issued to acquire intangible assets | **2472149** |  |
| Fair value of future share consideration to acquire intangible assets | **6606561** |  |
| Deferred share issuance to acquire intangible assets | **22310400** | - |
| **Cash used in financing activities** | **38115922** | - |
| **Investing activities** |  |  |
| Purchase of cryptocurrencies | **(13205774)** |  |
| Proceeds from sale of cryptocurrencies | **8362244** | 18747 |
| Validator asset purchases | **(34045391)** |  |
| Goodwill | **(278868)** |  |
| Sale/redemption of investments | **827669** | - |
| **Cash provided by (used in) investing activities** | **(38340120)** | 18747 |
| **Change in cash and cash equivalents** | **(528730)** | 13679 |
| **Cash and cash equivalents, beginning of the year** | **1808052** | 1927280 |
| **Cash and cash equivalents, end of the year** | $**1279322** | $1940959 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Cypherpunk Holdings Inc. (the "Company" or "Cypherpunk") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company is an actively managed crypto investment company. The Company's objective is to invest in crypto companies that drive technological innovation, demonstrate market leadership, achieve real-world adoption, navigate regulatory environments effectively, and form strategic partnerships for sustained growth (the "Investment Objective"). Sol Strategies executes its Investment Objective through three lines of effort: (1) Treasury management - Maintaining a core portfolio of cryptocurrencies for long-term growth, enhanced with risk management strategies to minimize volatility, and generating yield through lending, staking, and liquidity provisioning; (2) Private equity focused on early stage companies in the DeFi and blockchain sectors; and (3) Active investments to generate yield through strategic activities, including staking and validating Solana. The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 19). Additionally, during the three months ended December 31, 2024, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

These unaudited interim condensed consolidated financial statements for the three months ended December 31, 2024 (the "Interim Statements") have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other assets to supports its operations for the next twelve months from the date of the issuance of the Interim Statements.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Statement of Compliance**

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. These Interim Statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

The policies applied in these Interim Statements are based on IFRSs issued and outstanding as of March 3, 2025, the date the Board of Directors approved the Interim Statements. The same accounting policies and methods of computation are followed in these Interim Statements as compared with the most recent audited annual financial statements as at and for the year ended September 30, 2024. Any subsequent changes to IFRS that are given effect in the Company's annual financial statements for the year ending September 30, 2025 could result in restatement of these Interim Statements.

**3. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at December 31, 2024 and September 30, 2024.

---

| | | |
|:---|:---|:---|
| | **December 31,**<br>**2024** | September 30,<br>2024 |
| Cash in banks | $**1279322** | $1808052 |
|  | $**1279322** | $1808052 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**4. CRYPTOCURRENCIES**

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD)<sup>(a)</sup>** | **Cost (CAD)<sup>(a)</sup>** | **Market Value** |
| Bitcoin | 3.17 | $94871 | $136510 | $425891 |
| Solana | 139726.44 | 22071425 | 30390915 | 38135614 |
| **Balance at December 31, 2024** |  | $**22166295** | $**30527424** | $**38561505** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD)<sup>(a)</sup>** | **Cost (CAD)<sup>(a)</sup>** | **Market Value** |
| Bitcoin | 56.25 | $1684587 | $2183891 | $4816138 |
| Solana | 100763.02 | 14580870 | 19977930 | 20759374 |
| **Balance at September 30, 2024** |  | $**16265457** | $**22161821** | $**25575512** |

---

(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.

The activity of the Company's cryptocurrencies, excluding the Bitcoin posted as collateral at Wintermute Asia Pte. Ltd. and Zerocap Pty Ltd. (below), for the three months ended December 31, 2024 and the year ended September 30, 2024 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2023** | $**7852418** |
| Cash purchases | 19690454 |
| Cash sales | (2984944) |
| Gain on sales | 2278025 |
| Staking income | 287476 |
| Investment income received in cryptocurrencies | 277273 |
| Cryptocurrencies posted as collateral | (7969119) |
| Crptocurrency collateral returned | 2407478 |
| Foreign exchange gain | 3113 |
| Change in fair value | 3733338 |
| **Balance at September 30, 2024** | $**25575512** |
| Cash purchases | 10441902 |
| Cash sales | (5598372) |
| Gain on sales | 3424210 |
| Staking and validating income | 1303677 |
| Intangible asset purchased with cyrpto currencies | (2334385) |
| Expenses paid in cryptocurrencies | (25505) |
| Cryptocurrencies posted as collateral | (1757712) |
| Crptocurrency collateral returned | 2763872 |
| Foreign exchange gain (loss) | 167492 |
| Change in fair value | 4600814 |
| **Balance at December 31, 2024** | $**38561505** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

The activity of the Company's cryptocurrencies posted as collateral for the three months ended December 31, 2024 and the year ended September 30, 2024, is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2023** | $**-** |
| Cryptocurrencies posted as collateral | 7969119 |
| Cryptocurrency collateral returned | (2407478) |
| Investment income received in cryptocurrencies | 95568 |
| Cash sales | (11027632) |
| Gain on sales | 5370423 |
| **Balance at September 30, 2024** | $**-** |
| Cryptocurrencies posted as collateral | 1757712 |
| Cryptocurrency collateral returned | (2763872) |
| Cash purchases | 2763872 |
| Cash sales | (2763872) |
| Gain on sales | 1006160 |
| **Balance at December 31, 2024** | $**-** |

---

**5. INTANGIBLE ASSETS**

---

| | |
|:---|:---|
| | **Validator**<br>**assets** |
| **Cost** | |
| Balance at September 30, 2024 | $- |
| Additions | 33818627 |
| **Balance as of December 31, 2024** | **33818627** |
| **Accumulated amortization** |  |
| Balance at September 30, 2024 |  |
| Amortization<sup>(1)</sup> | 50082 |
| **Balance as of December 31, 2024** | **50082** |
| **Net book value as of December 31, 2024** | $**33768545** |

---

(1) The intangible assets are amortized on a straight-line basis over five (5) years.

During the three months ended December 31, 2024, the Company acquired certain intangible assets operating as Cogent Crypto ("Cogent") and OrangeFin Ventures LLC ("OrangeFin"), resulting in an increase in the amount of Solana being validated by the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

The Company acquired 78% interest in Cogent's Solana blockchain validator assets, and a 100% of Cogent's SUI blockchain, Monad blockchain and Arch blockchain validator assets (collectively, the "Cogent Assets"), including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of the Cogent Assets. The intangible assets acquired included blockchain validator accounts, public and private keys, software, domain names, social media accounts and rights to operating agreements.

The Company acquired 100% of OrangeFin's Solana blockchain and Arch blockchain validator assets (collectively, the "OrangeFin Assets"), including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of the OrangeFin Assets. The intangible assets acquired included blockchain validator accounts, public and private keys, software, domain names, social media accounts and rights to operating agreements.

The purchase price and net assets of the Cogent Asset acquisition are as follows:

---

| | |
|:---|:---|
| | **As of November 24, 2024** |
| Purchase price |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash consideration <sup>(1)</sup> | $1394340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value of 1,162,000 common shares issued at closing <sup>(2)</sup> | 1394400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value of 18,592,000 common shares issued subsequent to closing <sup>(3)</sup> | 22310400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction costs | 139354 |
|  | $**25238494** |
| Net assets acquired |  |
| &nbsp;&nbsp;Intangible assets | 24959626 |
| &nbsp;&nbsp;Goodwill | 278868 |
|  | $**25238494** |

---

(1) US$1,000,000 (CAD $1,391,340) paid in US dollar stable coins at closing.

(2) 1,162,000 common shares priced at $1.20 per share, issued at closing.

(3) 18,592,000 common shares issued payable as follows: 3,098,667 common shares on May 25, 2025, 3,098,667 common shares on November 25, 2025, 3,098,667 common shares on May 25, 2026, 3,098,667 common shares on November 25, 2026, 3,098,666 common shares on May 25, 2027, and 3,098,666 common shares on November 25, 2027.

The purchase price and net assets of the OrangeFin Asset acquisition are as follows:

---

| | |
|:---|:---|
| | **As of December 31, 2024** |
| Purchase price |  |
| &nbsp;&nbsp;Cash consideration<sup>(1)</sup> | $1079479 |
| &nbsp;&nbsp;Value of 1,162,000 common shares issued at closing<sup>(2)</sup> | 1077749 |
| &nbsp;&nbsp;Present value of future share consideration<sup>(3)</sup> | 6606560 |
| &nbsp;&nbsp;Transaction costs | 95213 |
|  | $**8859001** |
| Net assets acquired |  |
| &nbsp;&nbsp;Intangible assets | 8859001 |
|  | $**8859001** |

---

(1) US$750,000 (CAD $1,079,479) paid in US dollar stable coins at closing.

(2) 503,621 common shares priced at $2.14 per share, issued at closing.

(3) Present value of US$5,000,000 common shares of the company, based on a 3% discount rate and the following payment dates; US$833,333 on June 30, 2025, US$833,333 on December 31, 2025, US$833,333 on June 30, 2026, US$833,333 on December 31, 2026, US$833,333 on June 30, 2027,and US$833,333 on December 31, 2027.The common shares issued will be valued at the trading price per common share on the date of issuance.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

See also notes 9 and 14.

**6. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **December 31,**<br>**2024** | <br>**Quantity** | **September 30,**<br>**2024** |
| Chia Network Inc. (a) | **19860** | $**488781** | 19860 | $488781 |
| NGRAVE NV (b) | **138966** | **196881** | 138966 | 196881 |
| Animoca Brands Corporation Limited (c) | **-** | **-** | 909 | 442 |
| Lucy Labs Flagship Offshore Fund SPC (d) | **-** | **-** | 500 | 827227 |
|  |  | $**685662** |  | $**1513331** |

---

(a) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. As at September 30, 2024, the Company estimated Chia's fair market value per share to be $23.95 (US$17.74), the Company recognized an unrealized gain of $121,849 (2023 - unrealized loss of $2,558) to a value of $488,781 (2023 - $366,932) in the consolidated statements of comprehensive income. At December 31, 2024, the Company estimated Chia's fair market value to be $488,781 (2023 - 358,953) and recognized an unrealized gain of $nil in the Interim Statements (2023 - unrealized loss of $7,979).

(b) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE NV ("NGRAVE") was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. As at September 30, 2024, the Company estimated the fair value of NGRAVE to be C$196,881 (2023 - $80,976) as at September 30, 2024, the Company recognized an unrealized gain of $115,905 (2023 - unrealized loss $67,443) on its NGRAVE investment in the consolidated statements of comprehensive income. As at December 31, 2024, the Company estimated NGRAVE's fair market value to be $196,881 (2023 - 82,799) and recognized an unrealized gain of $nil in the Interim Statements (2023 - unrealized gain of $1,823).

(c) During the year ended September 30, 2023, the Company acquired 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a price of AUD $1.10 ($1.04 CAD) per share, totaling AUD $10,000,000 ($9,434,917 CAD). In the year ending September 30, 2024, the Company sold 9,090,000 of these shares at an average price of AUD $0.84 per share ($0.76 CAD), resulting in net proceeds of AUD $7,670,133 ($6,905,859 CAD). This sale generated a realized gain of $1,785,473 (2023 - $nil), after accounting for accumulated unrealized losses from previous fair value adjustments. As of September 30, 2024, the fair value of the remaining 909 shares was determined to be $442 (2023 - 9,090,909 shares valued at $5,120,897), with the Company recognizing an unrealized loss of $70 (2023 - $4,314,020 unrealized loss on 9,090,909 shares). At December 31, 2024, the Company estimated the value of its Animoca holding to be $nil and recognized a realized loss of $442 in the Interim Statements.

(d) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023. During the year ended September 30, 2024, the Company received an offer to sell its rights to the FTX bankruptcy claims from a third party for $827,227 (the "FTX Claims Offer"), and therefore the Company wrote the value of Lucy Labs up to $827,227, recognizing an unrealized gain of $827,227 during the year ended September 30, 2024 (2023 - $707,649).The FTX Claims Offer was consummated during the three month period ended December 31, 2024.

During the year ended September 30, 2024, the founders of Streetside Development, LLC ("Streetside") were charged by the United States Department of Justice, and Streetside's operations were shut down. As a result, the Company determined the fair value of its Streetside investment was $nil as at September 30, 2024 (2023 - $122,646) and the Company recognized a realized loss of $122,646 in the financial statements (2023 - unrealized loss of $3,870).

During the year ended September 30, 2024 the Company received 2.01 bitcoin of dividend income valued at $248,213 (2023 - 0.90 bitcoin of dividend income valued at $36,642) from zkSNACKS. Also, during the year, zkSNACKS management decided to cease operations at its conjoin coordination business. As a result, the Company determined the fair value of its zkSNACKS was $nil as at September 30, 2024 (2023 - $772,668) recognizing a realized loss of $772,668 (2023 - unrealized gain of $327,641).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the year ended September 30, 2024.

The activity of investments for the three months ended December 31, 2024 and the year ended September 30, 2024 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2023** | $**6464119** |
| Proceeds from sales (net) | (7176590) |
| Realized gain on sale of investments | 1160891 |
| Net unrealized gain on investments | 1064911 |
| **Balance, September 30, 2024** | $**1513331** |
| Proceeds from sales (net) | (827227) |
| Realized gain on sale of investments | (442) |
| **Balance, December 31, 2024** | $685662 |

---

**7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,**<br>**2024** | September 30,<br>2024 |
| Trade accounts payable | $**395267** | $83413 |
| Accrued liabilities | **166318** | 149516 |
|  | $**561585** | $232929 |

---

**8. INCOME TAXES PAYABLE**

The Company has provided for income tax at a tax rate of 26.5% based on tax rates expected to apply at the time of realization. The continuity of income taxes payable is as follows:

---

| | |
|:---|:---|
| | **Income tax**<br>**payable** |
| **Balance at September 30, 2024** | $**1547686** |
| Provision for income tax | 1163013 |
| **Balance as of December 31, 2024** | $**2710699** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**9. FINANCIAL LIABILITY - FUTURE SHARE ISSUANCE**

During the three-month period ended December 31, 2024, the Company acquired the OrangeFin Assets for consideration of US$750,000 (CAD $1,079,479) in US dollar stable coins and 503,621 common shares priced at $2.14 per share, paid on closing. The Company is also required to issue US$5,000,000 (CAD$7,175,000) worth of common shares of the company payable in six equal tranches of US$833,333 (C$1,195,833), every six months over a period of three years from the closing date of the acquisition (the "Obligation"). The number of shares issued per tranche will be determined based on the closing market price of the Company's common shares at the time of issuance.

The future share issuances may be subject to adjustment. In the event the Solana staked to the OrangeFin Assets on a share issuance date has decreased more than 5% from the amount delegated to the OrangeFin Assets on the closing date (632,302 Solana), the number of shares issued on the applicable share issuance date shall be reduced in proportion to the percentage decline in staked Solana that exceeds 5%.

In accordance with IAS 32 (Financial Instruments: Presentation) and IFRS 9 (Financial Instruments), the obligation has been recognized as a financial liability at its fair value of $6,833,325 as of the acquisition date, based on a discount rate of 5%. The fair value of the liability is remeasured at each reporting date, with changes in fair value recognized in profit or loss.

---

| | | | |
|:---|:---|:---|:---|
| **Share Issuance**<br>**Date** | **Amount**<br>**US$** | **Amount**<br>**CAD$** | **Present Value**<br>**CAD$** |
| June 30, 2025 | 833333 | 1195833 | 1170167 |
| December 31, 2025 | 833333 | 1195833 | 1141626 |
| June 30, 2026 | 833333 | 1195833 | 1113781 |
| December 31, 2026 | 833333 | 1195833 | 1086616 |
| June 30, 2027 | 833334 | 1195834 | 1060113 |
| December 31, 2027 | 833334 | 1195834 | 1034257 |
| Total | 5000000 | 7175000 | 6606560 |
| Current portion |  |  | (2311793) |
| **Present value of Future Share Issuance** |  |  | **4294768** |

---

**10. CREDIT FACILITY**

During the three-month period ended December 31, 2024, the Company entered into a $10 million unsecured, revolving demand credit facility (the "Credit Facility") with its Chairman, Mr. Antanas Guoga (the "Lender"). Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to $10 million (the "Commitment Amount") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to October 21, 2026 (the "Maturity Date"). The drawn and unpaid portion of the Commitment Amount (the "Principal Balance") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

The continuity of the credit facility from September 30, 2024, to December 31, 2024, is as follows:

---

| | |
|:---|:---|
| Balance at September 30, 2024 | $- |
| Advances to Company | 4123379 |
| Interest | 32835 |
| **Balance as of December 31, 2024** | $**4156214** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**11. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2023** | **152067183** | $**17864782** |
| Purchase of shares for cancellation | (7603343) | (938924) |
| Exercise of options (note 12) | 1709625 | 330810 |
| **Balance at September 30, 2024** | **146173465** | $**17256668** |
| Options exercised (note 12) | 1798625 | 425534 |
| Shares issued for acquisitions (note 5) | 1665621 | 2472149 |
| **Balance at December 31, 2024** | **149637711** | $**20154351** |

---

Pursuant to the terms of a normal course issuer bid, during the year ended September 30, 2024, the Company purchased and cancelled 7,603,343 shares (2023 - 2,960,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) PER SHARE AMOUNTS**

Basic and diluted earnings per share have been calculated on the basis of weighted average number of common shares outstanding as outlined below:

---

| | | |
|:---|:---|:---|
| <br>**For the three months ended,** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| Net income for the period | $3225716 | $2642003 |
| Weighted average number of shares outstanding | 147249194 | 152067183 |
| **Earnings per share, basic** | $**0.02** | $**0.02** |
| Weighted average number of shares outstanding | 147249194 | 152067183 |
| Share based compensation dilution | 13173221 | 2438500 |
| Weighted average number of shares outstanding, diluted | 160422415 | 154505683 |
| **Earnings per share, diluted** | $**0.02** | $**0.02** |

---

**12. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period, and the board of directors may specify a vesting period on a grant-by-grant basis. As at December 31, 2024, the maximum number of shares issuable pursuant to the Plan was 14,963,771, of which 13,173,221 options and 563,669 restricted share units had been granted, leaving 1,226,881 shares available to be granted.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**Options**

The following table presents the options outstanding as at December 31, 2024 and the assumptions used to determine fair value.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Grant date** | **Number**<br>**of options**<br>**outstanding** | <br>**Exercise**<br>**price** | **Expected**<br>**option life**<br>**(years)** | <br>**Risk free**<br>**interest rate** | <br>**Expected**<br>**volatility<sup>(1)</sup>** | <br>**Underlying**<br>**share price** | **Fair value per**<br>**option on**<br>**grant date** |
| August 28, 2020 | 600000 | $0.10 | 5.00 | 0.41% nil | 201.1% | $0.10 | $0.10 |
| November 21, 2022 | 1198750 | $0.10 | 5.00 | 3.32% nil | 161.6% | $0.10 | $0.09 |
| July 3, 2024 | 3000000 | $0.115 | 5.00 | 3.57% nil | 96.0% | $0.115 | $0.09 |
| July 8, 2024 | 2000000 | $0.115 | 5.00 | 3.46% nil | 96.0% | $0.115 | $0.09 |
| August 7, 2024 | 5900000 | $0.155 | 5.00 | 3.00% nil | 95.9% | $0.155 | $0.11 |
| September 11, 2024 | 119971 | $0.145 | 5.00 | 2.75% nil | 95.6% | $0.145 | $0.11 |
| October 29, 2024 | 279500 | $2.02 | 5.00 | 3.04% nil | 99.4% | $2.02 | $1.52 |
| November 26, 2024 | 75000 | $1.39 | 5.00 | 3.13% nil | 99.4% | $1.39 | $1.05 |
|  | **13173221** |  |  |  |  |  |  |

---

The Company's option activity for the three months ended December 31, 2024, and the year ended September 30, 2024, is as follows:

On November 26, 2024, the Company issued 75,000 options for future services to a consultant to buy common shares at an exercise price of $1.39 per common share and expiring on November 26, 2029. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $1.39, dividend yield 0%, expected volatility based on historical volatility of 99.4%, a risk-free interest rate of 3.13%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $78,589, which was charged to the Interim Statements.

On October 29, 2024, the Company issued 279,500 options for future services to a director to buy common shares at an exercise price of $2.02 per common share and expiring on October 29, 2029. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.02, dividend yield 0%, expected volatility based on historical volatility of 99.4%, a risk-free interest rate of 3.04%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $425,292, which was charged to the Interim Statements.

On September 11, 2024, the Company issued 149,971 options for future services to a director and a consultant to buy common shares at an exercise price of $0.145 per common share and expiring on September, 2029. The director was granted 49,971 stock options that vested on the grant date. The consultant was granted 100,000 stock options that vested on December 11, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.145, dividend yield 0%, expected volatility based on historical volatility of 95.6%, a risk-free interest rate of 2.75%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $15,967 of which $7,543 was charged to the statement of income (loss) and comprehensive income (loss) during the year ended September 30, 2024, and $8,424 was charged to the Interim Statements.

On August 7, 2024, the Company issued 6,900,000 options for future services to a directors and officers to buy common shares at an exercise price of $0.155 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.155, dividend yield 0%, expected volatility based on historical volatility of 95.9%, a risk-free interest rate of 3.0%, and an expected life of 5 years. The fair value of the options was estimated at $788,387 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

On July 8, 2024, the Company issued 2,000,000 options for future services to an officer to buy common shares at an exercise price of $0.115 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk-free interest rate of 3.46%, and an expected life of 5 years. The fair value of the options was estimated at $170,432 which was charged to statement of income (loss) and comprehensive income (loss) on the grant date.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

On July 3, 2024, the Company cancelled 6,900,000 options (the "Cancelled Options") that had previously been granted to directors and officers; 1,500,000 options granted on April 9, 2021 with an exercise price of $0.30 per share, 4,400,000 options granted on July 7, 2021 with an exercise price of $0.165 per share, and 1,000,000 options granted on October 7, 2021 with an exercise price of $0.20 per share. An estimated fair value of $1,273,040 had previously vested in full for the Cancelled Options and was credited to retained earnings upon cancellation (2023 - 4,000,000 options were cancelled, 2,000,000 options granted on July 7, 2021 with an exercise price of $0.165 and 2,000,000 options granted on November 11, 2021 with an exercise price of $0.24).

On July 3, 2024, the Company issued 3,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.115 per common share and expiring on July 3, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk-free interest rate of 3.57%, and an expected life of 5 years. The fair value of the options was estimated at $255,774 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

During the year ended September 30, 2024, 1,719,875 options that had previously vested expired unexercised; 250,000 options granted December 1, 2020 with an exercise price of $0.10, 1,400,000s option granted on July 7, 2021 with an exercise price of $0.165 and 279,500 options granted on November 21, 2022 with an exercise price of $0.10 (2023 - 900,000 granted on February 13, 2019 with an exercise price of $0.07) and $259,629 was credited to retained earnings for expired options (2023 - $nil).

As a result of the forgoing, during the year ended September 30, 2024, $1,320,919 was charged to the statement of income (loss) and comprehensive income (loss) for share-based compensation (2023 - $430,945) and $1,532,664 was credited to retained earnings for cancelled options (2023 - $nil).

During the three months ended December 31, 2024, 354,500 options were granted (2023 - nil) resulting in a charge to the statement of income and comprehensive income for share-based compensation of $512,304 (2023 - $38,076).

The continuity of outstanding stock options at December 31, 2024 and September 30, 2024, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**December 31,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2024 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **14617346** | $**0.13** | 13106500 | $0.18 |
| Granted | **354500** | $**1.89** | 12049971 | $0.14 |
| Exercised | **(1798625)** | $**0.13** | (1709625) | $0.10 |
| Cancelled | **-** | **-** | (6900000) | $0.20 |
| Expired | **-** | **-** | (1929500) | $0.15 |
| **Ending balance - outstanding** | **13173221** | $**0.18** | 14617346 | $0.13 |

---

The detail of outstanding options as at December 31, 2024 and September 30, 2024 is as follows:

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31,** |  | **Exercise** | **September 30,** |  | **Exercise** |
| **Expiry Date** | **2024** | **Exercisable** | **Price** | **2024** | **Exercisable** | **Price** |
| August 28, 2025 | **600000** | **600000** | $**0.10** | 600000 | 600000 | $0.10 |
| November 21, 2027 | **1198750** | **1198750** | $**0.10** | 1967375 | 1967375 | $0.10 |
| July 4, 2029 | **3000000** | **3000000** | $**0.115** | 3000000 | 3000000 | $0.115 |
| July 8, 2029 | **2000000** | **2000000** | $**0.115** | 2000000 | 2000000 | $0.115 |
| August 7, 2029 | **5900000** | **5900000** | $**0.155** | 6900000 | 6900000 | $0.155 |
| September 11, 2029 | **119971** | **119971** | $**0.145** | 149971 | 149971 | $0.145 |
| October 29, 2029 | **279500** | **279500** | $**2.02** |  |  |  |
| November 27, 2025 | **75000** | **75000** | $**1.39** |  |  |  |
| **Ending balance - outstanding** | **13173221** | **13173221** | $**0.18** | **14617346** | **14617346** | $**0.13** |

---

As at December 31, 2024, 13,173,221 options were exercisable at a weighted average price of $0.18 per share (September 30, 2024 - 14,637,346 at $0.13). The weighted average life of the outstanding options is 4.24 years (September 30, 2024 - 4.8 years).

**Restricted Share Units**

During the three months ended December 31, 2024, the Company granted 563,669 restricted share units ("RSUs") to a consultant that are and are exchangeable into common shares of the Company on a one for one basis upon achieving the vesting conditions. The RSU's were valued at the market price as of the date they were granted ($698,950), and the expense charged to income on a straight-line monthly basis over the RSUs' six-month vesting period, commencing December 24, 2024. During the three-month period ended December 31, 2024, the total charged to the statement of income and comprehensive income for share-based compensation was $116,492 (2023 - $nil).

**13. WARRANTS**

The continuity of outstanding warrants for the three months ended December 31, 2024, and the year ended September 30, 2024, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**December 31,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2024 | **Weighted**<br>**average**<br>**exercise**<br>**price** |
| Beginning balance | **-** | **-** | **16764707** | $**0.40** |
| Expired | **-** | **-** | **(16764707)** | $**-0.40** |
| **Ending balance** | **-** | **-** | **-** | $**0.00** |

---

There were no outstanding warrants as at December 31, 2024 and September 30, 2024.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**14. FUTURE SHARE ISSUANCE**

During the three-month period ended December 31, 2024, the Company acquired the Cogent Assets for consideration of US$1,000,000 (CAD $1,394,340) in US dollar stable coins and 1,162,000 common shares priced at $1.20 per share, paid in cash and issued is common shares at closing, respectively. The Company allocated $278,868 of the payments made at closing to goodwill. The Company is also required to issue 18,592,000 common shares as follows: 3,098,667 common shares on May 25, 2025, 3,098,667 common shares on November 25, 2025, 3,098,667 common shares on May 25, 2026, 3,098,667 common shares on November 25, 2026, 3,098,666 common shares on May 25, 2027, and 3,098,666 common shares on November 25, 2027.

The future share issuances may be subject to adjustment. In the event the Solana staked to the Cogent Assets on a share issuance date has decreased more than 5% from the amount delegated to the Cogent Assets on the closing date (690,895 Solana), the number of shares issued on the applicable share issuance date shall be reduced in proportion to the percentage decline in staked Solana that exceeds 5%.

In accordance with IAS 32 (*Financial Instruments: Presentation*) and IFRS 9 (*Financial Instruments*), the obligation has been recognized as reserves of $22,310,400 as of the acquisition date. The future share issuance obligation is classified as equity as it meets the fixed- for-fixed criterion under IAS 32, given that the number of shares to be issued is predetermined and the consideration is based on a fixed contractual obligation.

**15. STAKING AND VALIDATING INCOME**

During the year ended September 31, 2024, the Company initiated Solana staking and validating operations which were enhanced by the acquisitions of the Cogent Assets and the OrangeFin assets during the three months ended December 31, 2024 (see note 5). The results for the three months ended December 31, 2024 and 2023 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **December 31,** |  | **December 31,** |
| **Three months ending** |  | **2024** |  | **2023** |
|  | *Expressed in* | *Expressed in* | *Expressed in* | *Expressed in* |
|  | *Solana* | *Canadian Dollars* | *Solana* | *Canadian Dollars* |
| Validator operations |  |  |  |  |
| &nbsp;&nbsp;Validator rewards | 2008 | $591983 |  | $- |
| &nbsp;&nbsp;Validator fees, paid in Solana tokens | (164) | (12697) |  |  |
| &nbsp;&nbsp;Validator fees, paid in fiat | n/a | (58828) |  |  |
| Operating margin | 1844 | 520458 |  |  |
| Staking rewards | 2597 | 724391 |  |  |
| **Total staking and validating income** | **4441** | $**1244849** | **-** | $**-** |

---

**16. RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the three months ended December 31, 2024, the Company paid $15,796, (2023 - $30,000) for consulting services provided by an officer of the Company. At December 31, 2024, there is $nil (2023 - $30,000) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $25,338 (2023 - $18,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $18,000 (2023 - $18,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

During the three months ended December 31, 2024, the Company paid $113,873 (2023 - $5,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $5,000 (2023 - $5,000) in directors fees to a director of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $5,000 (2023 - $nil) in directors fees to a director of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, $68,426 (2023 - $1,205) was charged for legal services by a firm of which an officer of the Company is a partner. At December 31, 2024, there is $68,426 of accounts payable to this related party (2023 - $1,361).

During the three months ended December 31, 2024, the Company's chairman provided a $10 million dollar credit facility to the Company, of which $4,294,768 had been advanced as at December 31, 2024 (see note 10).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| **Three months ended December 31,** | **2024** | **2023** |
| Consulting fees | $**209007** | $88500 |
| Director fees | **10000** | 1000 |
| Stock-based compensation | **425292** | 38076 |
|  | $**642076** | $127576 |

---

At December 31, 2024, included in accounts payable and accrued liabilities is $68,426 (2023 - $31,361) owed to related parties.

**17. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017, the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary KRBV for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority has again issued a preliminary assessment, and the Company has filed a notice of objection to this assessment. The Company believes that the tax collection period of tax debts has expired, however, it is possible that the recovery period for any taxes that could be owed may have been extended. As a result, no provision has been made for this reassessment in these financial statements.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**18. FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short-term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $- | $685662 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 38561505 |  |
|  | $**-** | $**38561505** | $**685662** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 25575512 |  |
|  | $**-** | $**25575954** | $**1512889** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

(ii) Valuation *techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

(iii) *Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the three months ended December 31, 2024 and the year ended September 30, 2024.

(iv) *Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | December 31, | September 30, | December 31, | December 31, |
|  | 2024 | 2024 | 2024 | 2024 |
| Investments | $685662 | $1512889 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at December 31, 2024 and noted that a 20% decrease would result in a $137,132 decrease in fair value.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**19. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the three months ended December 31, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency, and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at December 31, 2024, the Company holds $1,279,322 in cash and cash equivalents at high credit quality financial institutions (September 30, 2024 - $1,808,052). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies, mainly Solana; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at December 31, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $68,566 (September 30, 2024 - $151,289).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of December 31, 2024, is $1,237,509 (September 30, 2024 - $1,762,619). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $123,751 (September 30, 2024 - $176,262).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2024, the Company had cash and cash equivalents balance of $1,279,322 (September 30, 2024 - $1,808,052) to settle accounts payable and accrued liabilities of $561,585 (September 30, 2024 - $232,929). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Concentration Risk**

The Company is exposed to concentration risk as the majority of its assets are held in Solana and related validator operations. The value of these assets is highly dependent on the performance, stability, and adoption of the Solana network, as well as broader cryptocurrency market and economic conditions. Any adverse developments, including regulatory changes, security incidents, or network disruptions, could materially impact the Company's financial position. The Company continuously evaluates its exposure and risk management strategies to mitigate potential adverse effects.

**Regulatory Risk**

The regulatory environment for digital assets, including Solana, remains uncertain and continues to evolve. Changes in laws, regulations, or enforcement actions in key jurisdictions could impact the Company's ability to operate validator nodes, stake assets, or transact in Solana. Regulatory developments may also affect the liquidity, valuation, or classification of Solana under applicable financial reporting standards. The Company actively monitors regulatory changes and assesses potential impacts on its operations and financial position.

**Solana Governance Risk**

Solana's development and governance are significantly influenced by the Solana Foundation, which plays a key role in protocol upgrades, ecosystem growth, and validator coordination. While Solana operates as a decentralized blockchain, the Solana Foundation's decision- making authority could impact network stability, economic incentives, or technical direction in ways that may not align with the interests of all stakeholders. Any material changes initiated by the Solana Foundation, including governance proposals, tokenomics adjustments, or network upgrades, could affect the Company's validator operations and the value of its Solana and Solana-related assets. The Company continues to monitor governance developments and assess potential risks to its operations.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three months ended December 31, 2024 and 2023**

On or about March 6, 2025, Solana validators and stakeholders will begin voting on governance proposals SIMD-0228 and SIMD-0123. SIMD-0228 aims to introduce a dynamic token emission model that could adjust Solana's inflation rate based on staking participation, potentially reducing annual inflation from 4.5% to as low as 0.87% if staking exceeds a certain threshold. SIMD-0123 proposes a mechanism where validator operators can share block rewards with their stakers. A lower emission rate may result in reduced validator rewards, though this could be offset by potential appreciation in SOL's value. The Company continues to monitor these developments and will adjust its validator operations as needed to maintain efficiency and competitiveness.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**20. INCOME TAX**

As at September 31, 2024, the Company recognized a deferred tax liability of $399,406 (2022 - $201,518) in respect recognition of tax expenses associated with unrealized gains on cryptocurrencies. The net deferred tax liabilities which originated during the year ended September 30, 2024, have also not been recognized in the Interim Statements.

**21. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**22. SUBSEQUENT EVENTS**

On January 7, 2025, the Company announced that it had entered into an agreement to increase the $10 million unsecured, revolving demand credit facility credit facility with Antanas Guoga, the Company's Chairman and director, announced on October 22, 2024, to $25 million.

On January 16, 2025, the Company closed a private placement financing of CAD $27.5 million (the "Private Placement") of convertible debenture units (each a "CD Unit") with ParaFi Capital. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company, and the Debentures are convertible at any time into common shares of the Company at CAD $2.50 per common share. Each warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of CAD $2.50 per common share, exercisable at any time on or before the five-year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest.

On January 24, 2025, the Company closed a private placement financing of CAD $2.5 million (the "Private Placement") of convertible debenture units (each a "CD Unit"). Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 214 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company, and the Debentures are convertible at any time into common shares of the Company at CAD $4.66 per common share. Each warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of CAD $4.66 per common share, exercisable at any time on or before the five-year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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## Exhibit 99.89

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![](exhibit99-89x001.jpg)

**(formerly Cypherpunk Holdings Inc.)**

**MANAGEMENT DISCUSSION AND ANALYSIS**

For the three months ended December 31, 2024 and 2023

As at March 3, 2025

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**DISCLAIMER**

The following Management's Discussion & Analysis ("MD&A") of the financial condition and results of the operations of Sol Strategies, Inc. formerly Cypherpunk Holdings, Inc. (the "Company" or "Sol Strategies") constitutes management's review of the factors that affected the Company's financial and operating performance for the three months ended December 31, 2024 and 2023. All information in this MD&A is given as of the three months ended December 31, 2024 and 2023, unless otherwise indicated. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

This MD&A has been prepared in compliance with the requirements of Form 51-102F1, in accordance with National Instrument 51-102 - *Continuous Disclosure Obligations*. This MD&A should be read in conjunction with the interim unaudited condensed and consolidated financial statements for the three months ended December 31, 2024 and 2023, together with the notes thereto. In the opinion of management, all adjustments (which consist only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results for the three months ended December 31, 2024, are not necessarily indicative of the results that may be expected for any future period.

For the purposes of preparing this MD&A, management considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value in the common shares of Sol Strategies' ("Common Shares"); or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

The words "we", "our", "us", "Company" and "Sol Strategies" refer to Sol Strategies, Inc. together with its management and/or employees of the Company (as the context may require).

These documents, along with additional information about Sol Strategies, are available under the Company's profile at www.sedar.com.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward- looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "continues," "forecasts," "projects," "predicts," "intends," "anticipates" or "believes," or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may," "could," "would," "should," "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. These forward-looking statements may include, but are not limited to, statements relating to:

- Our expectations regarding our revenue, expenses, operations and future operational and financial performance;

- Our cash flows;

- Popularity, adoption and rate of adoption of cryptocurrencies;

- The rise of Solana's increasing market share in the asset tokenization market;

- Our future growth plans and acquisition strategies;

- Our ability to stay in compliance with laws and regulations or the interpretation or application thereof that currently apply or may become applicable to our business both in Canada, the United States (the "U.S.") and internationally;

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- Our expectations with respect to the application of laws and regulations and the interpretation or enforcement thereof and our ability to continue to carry on our business as presently conducted or proposed to be conducted;

- The reliability, stability, performance and scalability of our infrastructure and technology;

- Our ability to attract new customers and maintain existing customers;

- Our ability to attract and retain personnel;

- Our expectations with respect to advancement in our technologies;

- Our competitive position and our expectations regarding competition; and

- Regulatory developments and the regulatory environments in which we operate.

Forward-looking statements are based on certain assumptions and analysis made by us in light of our experience and perception of historical trends, current conditions and expected future developments and other factors we believe are appropriate. Forward-looking statements are also subject to risks and uncertainties which include:

- Decline in the cryptocurrency market or general economic conditions;

- Regulatory uncertainty and risk, including changes in laws or the interpretation or application or enforcement thereof and the obtaining of regulatory approvals;

- We are subject to an extensive and highly evolving and uncertain regulatory landscape and any adverse changes to, or our failure to comply with, any laws and regulations, or regulatory interpretation of such laws and regulations, could adversely affect our brand, reputation, business, operating results, and financial condition;

- In connection with such laws and regulations or regulatory interpretation thereof, a particular crypto asset's or product offering's status as a "security" in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a crypto asset or product offering, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, and our business, operating results, and financial condition may be adversely affected;

- Risks related to managing our growth;

- Our dependence on customer growth;

- The future development and growth of crypto is subject to a variety of factors that are difficult to predict and evaluate. If crypto does not grow as we expect, our business, operating results, and financial condition could be adversely affected;

- Regulatory risk, including changes in laws or the interpretation or application thereof and the obtaining of regulatory approvals;

- Technology and infrastructure risks;

- Cybersecurity risks;

- Fluctuations in quarterly operating results;

- Competition in our industry and markets;

- Our reliance on key personnel;

- Our reliance on third party service providers;

- Exchange rate fluctuations;

- Risks related to terrorism, geopolitical crisis, or widespread outbreak of an illness or other health issue; and

- Risks associated with acquisitions and the integration of the acquired businesses;

Inherent in forward-looking statements are risks, uncertainties and other factors beyond Sol Strategies' ability to predict or control. Readers are cautioned that the above does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this document may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for crypto assets may not continue and readers should not put undue reliance on past performance and current trends. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

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**DESCRIPTION OF BUSINESS**

Sol Strategies, Inc. is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's Common Shares have traded on the Canadian Securities Exchange ("CSE") under the symbol "HODL."

On July 9, 2024, Leah Wald was appointed Chief Executive Officer of Sol Strategies, bringing a bold vision to transform the Company into a leading technology-driven enterprise. Under Ms. Wald's leadership, the Company pivoted its strategy to focus on the Solana blockchain ecosystem, leveraging its high-performance infrastructure and scalability. This shift included holding Solana (SOL) as a core balance sheet asset, operating state-of-the-art validators, and developing intuitive staking tools paired with robust compliance frameworks. The Company's mission is to operate secure validators that leverage Solana's unmatched speed, throughput, and ecosystem to deliver long-term value for both users and investors. The Company is committed to developing unique technologies that optimize staking efficiency and accessibility, further strengthening Solana's position as a leading blockchain for institutional and enterprise applications. Reflecting this strategic pivot, the Company rebranded from Cypherpunk Holdings, Inc. to Sol Strategies, Inc. on September 9, 2024.

**FINANCIAL & OPERATIONAL HIGHLIGHTS:**

Since implementing this strategy, Sol Strategies has achieved significant milestones as of March 3, 2025:

• Reallocated digital asset holdings to strategically align with the Company's focus on the Solana ecosystem. Increased Solana Holdings: Sol Strategies increased its Solana (SOL) holdings from nil to 139,726 SOL as of

December 31, 2024, representing a substantial investment in the ecosystem's growth potential. As of the date hereof, SOL holdings have further increased to 239,623 SOL, reinforcing our commitment to expanding within Solana's high-performance blockchain infrastructure.

• Reduced Bitcoin Exposure: Bitcoin holdings decreased from 215.37 BTC as of September 30, 2023, to 56.25 BTC by September 30, 2024, and stand at 3.17 BTC as of the date hereof, reflecting a strategic reallocation of resources toward Solana-based initiatives.

• The Company successfully liquidated shares in Animoca Brands, generating a gain of $1.8 million, and sold other non-core assets, redirecting capital into core business operations.

**STAKING and VALIDATOR OPERATIONS**

Sol Strategies earns investment income by staking its Solana, by delegating it to one of the Company's three validator nodes (each a "Validator") to receive staking rewards. The Validators use the SOL delegated to them, by both the Company and third-party delegators, to perform tasks that help optimize the Solana network, for which the Validators receive rewards that are distributed on a pro rata basis to the delegators, net of fees. Sol Strategies has significantly grown its validator operations since the end of Fiscal 2024, reinforcing its position as a key infrastructure provider in the Solana ecosystem:

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• **Validator Acquisition and Growth:** Sol Strategies has acquired and operates multiple high-performance validators. As of March 3, 2025, 1,653,752 SOL with a value of $245 million, were staked at the Company's Validators, of which 239,607 SOL were the Company's. This represents an increase of 1,552,552 SOL (1,434%) of SOL delegated to its Validators since the end of Fiscal 2024. At December 31, 2024, 1,569,214 SOL, with a value of $424 million, were delegated to the Validators, of which 137,534 SOL, with a value of $37 million, were the Company's. These Validators are optimized for scalability, high availability, and competitive yields, ensuring operational efficiency and strengthening Sol Strategies' role in supporting Solana's network growth.

• **Revenue Growth from Staking**: Sol Strategies' delegated SOL, 239,607 SOL of its 239,623 SOL holdings, is exclusively staked to its own high-performance Validators. This marks a significant increase from the 101,200 SOL staked as of September 30, 2024, reflecting a 137% increase in staked SOL. The staked SOL generated annualized staking income of 12,800 SOL ($3.7 million<sup>(1)</sup>), an average annual staking yield of approximately 7%<sup>(2)</sup> across our Validators.

• **Validation Revenue:** Since January 1, 2025, the first date with all three Solana Validators were fully under Sol Strategies' ownership and control, the Validators have generated annualized revenues of 26,512 SOL ($7.7 million CAD<sup>(3)</sup>). This revenue is derived from commissions earned from SOL delegated to Sol Strategies' high- performance Validators by the Company and third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Based on the total SOL staking rewards during the period from January 1, 2025 to February 28, 2025 (the "Period"), multiplied by the average SOL price during the Period, which is then multiplied by the average USD/CAD exchange rate for the Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on the total SOL staking rewards during the period divided by the average amount of SOL staked during the Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on the daily validator revenue earned during the period, multiplied by the daily SOL price and then the daily USD/CAD exchange rate.

**Staking and Validator Operations Risk Subsequent to September 30, 2024**

Subsequent to September 30, 2024, Sol Strategies has acquired seven validators, and now operates eight high- performance validators, three of which are on the Solana network. As a result of those acquisitions, the Company's validator and Solana staking businesses have developed significantly since the end of the fiscal year ended September 30, 2024, which businesses are subject to their own risk factors, including those described below.

**Risks related to validator operations**

The Company expects that subsequent to the year ended September 30, 2024, a significant portion of the revenue generated by the Company will come from the awards realized by managing the Validators and by staking its own assets to such Validators. There is a risk that fewer third-party Solana holders delegate their Solana to Sol Strategies' Validators, resulting in fewer awards and lower yields to the Company.

**Risks related to Staking Operations**

The Company operates eight Validators, seven of which were acquired subsequent to the year ended September 30, 2024, and three of which operate in the Solana network, and as such the Company earns crypto token rewards for processing transactions and securing crypto networks. The Company expects to, in large part, re-stake its crypto token rewards to its Validators. The Company's decision to stake an individual crypto token depends on a combination of network quality, network liquidity and expected staking compensation, the percentage of which varies from token to token. The compensation percentage is determined by a combination of a network's natural inflation rate, the transaction fees generated on the network, a token's price, and the percent of total tokens being staked. As such, the Company's compensation percentage may fall temporarily due to a short-term decline in transaction volume or an increase in the percent of crypto tokens being staked. The Company has no control over the compensation percentages of the various crypto tokens it chooses to stake, and the compensation percentage may fall below expected levels temporarily or permanently. The compensation percentage is expected to decrease as sector activity increases and more crypto tokens are invested in specific tokens. Staking revenues could decrease to a level that materially and adversely affects the Company's staking assets and staking strategies, the value of its staking assets and the value of any investment in the Company.

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**PROPRIETARY TECHNOLOGY SOLUTIONS AND INTELLECTUAL PROPERTY**

Sol Strategies has built and acquired a valuable portfolio of proprietary intellectual property, reinforcing our position as a technology-first company in blockchain innovation. This suite of tangible, high-impact tools include:

• **Real-Time Yield Calculators:** Advanced algorithms deliver precise, up-to-the-minute insights into staking rewards, empowering users with critical performance data.

• **Seamless Wallet-to-Validator Integrations:** Cutting-edge web technologies enable smooth, secure connections between user wallets and our validators, simplifying the staking process and enhancing accessibility.

• **Staking Reporting Dashboard:** The recently launched dashboard enhances transparency, offering users detailed analytics and performance metrics for their staking activity. The dashboard provides real-time visibility into all on-chain revenue, showcasing exactly how and where revenue is generated.

• **Deployment of Firedancer Validator Client:** One of the first operators to launch Firedancer on Solana mainnet, reinforcing technical leadership and automation.

• **Retail Staking Application:** Sol Strategies launched a self-custodial staking app on Solana's dApp store, expected to roll out on Apple App Store and Google Play in 2025.

**ENTERPRISE-GRADE SECURITY and COMPLIANCE FRAMEWORKS**

• **ISO 27001 Certification Frameworks:** Rigorous security protocols designed to protect our infrastructure, user data, and validator operations, aligning with global best practices for information security.

• **SOC 1 & SOC 2 Compliance Initiatives:** Actively pursuing financial control (SOC 1) and security (SOC 2) certifications, further strengthening institutional trust.

**• Policy Documentation and Internal Auditing Tools:** Comprehensive compliance documentation, including standardized policies for governance, risk management, and operational security, which are regularly audited to maintain alignment with regulatory expectations.

**CAPITAL MARKET EXPANSION**

• **Nasdaq:** Sol Strategies has applied for a U.S. Nasdaq listing to broaden market visibility and expand access to institutional investors.

• **OTC Markets:** The Company successfully upgraded from the Pink Sheets to an OTCQX listing on January 21, 2025, significantly boosting U.S. trading volume and improving overall liquidity.

**Enhanced Investor Relations and Market Liquidity**

Sol Strategies achieved higher trading volumes on both the CSE and OTC markets, reflecting growing investor interest. Additionally, the Company engaged Proconsul Capital, Ltd. to strengthen investor communication and outreach.

**KEY GROWTH PILARS**

• **Strong Liquidity Position:** With **$71 million CAD** in liquidity at the date hereof, Sol Strategies has the flexibility to acquire SOL, stake it for an expected yield of up to **8.91%<sup>(4)</sup>**, expand validator capacity, and invest in cutting- edge technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) based on publicly available data, see https://stakewiz.com/)

• **Profitable Validator Operations with High Gross Margins:** Sol Strategies operates a scalable and efficient validator network with minimal incremental costs. This high-margin business model generates reliable recurring revenue and positions the Company as a critical infrastructure provider within Solana's expanding ecosystem.

• **Technology Innovation:** Proprietary tools like real-time yield calculators, wallet integrations, and a non- custodial staking mobile app simplify the user experience and drive organic growth to validators.

------

• **Commitment to Compliance and Security**: Adhering to rigorous regulatory and cybersecurity standards is a core priority as we build trust with users and investors alike. Our compliance frameworks are designed to align with evolving regulations and include stringent measures such as our ISO 27001 certification, ensuring that our infrastructure operates securely, reliably, and in full alignment with the highest standards within the broader financial ecosystem.

As the first and largest publicly traded company exclusively focused on Solana in North America, Sol Strategies bridges the gap between traditional finance and blockchain innovation. Our company offers investors scalable, compliant exposure to this groundbreaking ecosystem. The strength and scalability of our validator operations, combined with our commitment to strategic innovation, position us to capitalize on Solana's transformative applications and ongoing growth.

Investor confidence in the digital asset sector is accelerating, and Sol Strategies is uniquely positioned at the forefront of this evolution. By advancing our infrastructure, capitalizing on favorable market conditions, and driving innovation, we are committed to leading as the premier Solana-focused company and delivering enduring value for our investors.

**ACQUISITIONS AND STRATEGIC INVESTMENTS**

Strategic Investment

On January 7, 2025, the Company announced that it had entered into an agreement with Antanas Guoga, the Company's Chairman and director to increase its $10 million unsecured, revolving demand credit facility, to $25 million, providing financial flexibility to scale operations and seize strategic growth opportunities.

Cogent Crypto Validators Acquisition

On November 25, 2024, the Company acquired four Validators operating in the Solana, Sui, Monad and Arch networks, and certain assets related to the Validators from Cogent Crypto for total consideration of (i) $1,000,000 USDC on Closing, (ii) the issuance of 1,162,000 Common Shares on closing at a price of CAD $1.20 per Common Share, and (iii) 18,592,000 Common Shares to be issued at a deemed price of CAD $1.20 per Common Share over a period of three years from closing. Cogent Crypto operates a high-performance validator operating within the Solana ecosystem, and also has validator assets operating in the SUI, MONAD, and ARCH network ecosystems, all of which are now operated by the Company.

OrangeFin Validators Acquisition

On December 31, 2024, the Company acquired three Validators operating in the Solana, Solana Testnet, and Arch Testnet networks, and certain assets related to the Validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services for consideration of (i) 750,000 USDC on closing, (ii) the issuance of 503,621 Common Shares at a deemed value of $2.14 per share on closing, and (iii) US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance), to be issued in six equal tranches every six months over a period of three years from closing In addition to the acquisition of Validators, Max Kaplan, founder of Orangefin Ventures, has joined as the Company's new Head of Staking.

ParaFi Private Placement

On January 16, 2025, the Company announced the completion of its private placement financing of CAD $27.5 million (the "Private Placement"), by ParaFi Capital (<u>https://parafi.com/</u>), a leading global blockchain investment firm. The proceeds from the Private Placement will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

The Private Placement consisted of unsecured convertible debenture units ("CD Units") for gross proceeds of CAD $27.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 common share purchase warrants (each, a "Warrant"). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or Common Shares and the Debentures are convertible at any time into Common Shares of the Company at CAD $2.50 per Common Share. Each Warrant entitles the holder thereof to purchase one (1) Common Share of the Company at an exercise price of CAD $2.50 per Common Share, exercisable at any time on or before January 16, 2030. The Debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Common Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants are subject to restrictions on trading until the date that is four months and a day following the closing date of the Private Placement.

------

On January 24, 2025, the Company announced the completion of a second tranche private placement on the same terms as the ParaFi Private Placement, except the second tranche was based on a $4.66 conversion and warrant exercise price. The second tranche brought the total gross proceeds received pursuant to private placement financing to CAD $30 million.

**Long-term Incentive Plan**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire Common Shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of Common Shares subject to options granted under the Plan is limited to 10% in the aggregate of the number of issued and outstanding Common Shares of the Company at the date of the grant of the award. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the Company's board of directors which cannot exceed five years. The plan does not require any vesting period, and the Company's board of directors may specify a vesting period on a grant-by-grant basis.

**Funding**

We believe our operating activities will continue to generate adequate cash flows to fund normal operations<u>.</u> However, we continually evaluate opportunities for us to maximize our growth and further enhance our strategic position, including, among other things, acquisitions, strategic alliances, and joint ventures potentially involving all types and combinations of equity, and acquisition alternatives. As a result, we may choose to raise additional funds to support those strategic initiatives.

**Hiring**

Recent additions to the Sol Strategies team include the following:

Leah Wald, Chief Executive Officer Ms. Wald was appointed Chief Executive Officer of Sol Strategies on July 9, 2024, and joined the Company's board of directors on September 13, 2021. Leah is an accomplished entrepreneur with deep expertise in alternative asset management and disruptive technologies. As Co-Founder and CEO of Valkyrie Investments, she led the firm to over $1.3 billion in AUM that included cryptocurrency trusts, hedge funds, and ETFs. Valkyrie's ETFs and investment advisory business was acquired by CoinShares and its private trust division by Abra Capital Management in 2024.

Andrew McDonald, Director of Operations. Mr. McDonald joined the Company on January 21, 2025. Andrew was previously the Chief Operating Officer of Bitaccess Inc. a Canadian SaaS company serving the Bitcoin ATM industry. Andrew helped to guide Bitaccess through an acquisition and oversaw its growth to be one of the world's largest Bitcoin ATM software providers.

Max Kaplan, Head of Staking on December 31, 2024 and Chief Technology Officer on January 30, 2025. Mr. Kaplan is the founder of Orangefin Ventures, which was acquired by the Company on December 31, 2024. Prior to founding Orangefin Max was senior director of Engineering at Kraken.

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Doug Harris, Chief Financial Officer. Mr Harris joined the Company as Chief Financial Officer on a full-time basis on January 1, 2025. Doug joined the Company as a part-time CFO in April 2021. Doug Harris is a Chartered Accountant (CPA, CA) and Chartered Business Valuator (CBV) with over 20 years of experience in finance. His expertise spans corporate finance, accounting, private equity, and M&A, with involvement in over $2 billion worth of transactions.

**Board Appointments**

Ungad Chadda was appointed to the board of directors of the Company on September 11, 2024, as an independent director. Mr. Chadda is a seasoned capital markets regulator and financial services executive, having held various senior positions at TMX Group Limited, the parent company of the Toronto Stock Exchange. During Mr. Chadda's tenure of over 21 years at TMX Group, he held progressively senior roles, including Director of Listings, TSX Venture Exchange; Chief Operating Officer, TSX Venture Exchange; Vice President, Business Development, Toronto Stock Exchange and TSX Venture Exchange; President, Toronto Stock Exchange; CFO of TSX Trust (formerly Equity Transfer and Trust) an OSFI regulated entity; and SVP, Head of Enterprise Corporate Strategy and External Affairs, TMX Group. Currently, Mr. Chadda serves as the CEO and Director of Urban Infrastructure Group Inc., a TSX Venture Exchange- listed company in the construction industry.

On January 30, 2025, Mr. Mohammed Adam resigned as director and Chief Investment officer of the Company due to personal circumstances.

March 3, 2025, the Company appointed Mr. Luis Berruga, Founder and Managing Partner of LBS Capital, to its Board of Directors. With over 20 years of expertise and leadership in global ETF markets and traditional finance, Mr. Berruga's extensive experience in ETF's and asset management is expected to provide critical insights and business development opportunities as Sol Strategies continues its growth trajectory and advances the development of its institutional Solana Staking platform.

**Funding**

We believe our operating activities will continue to generate adequate cash flows to fund normal operations<u>.</u> However, we continually evaluate opportunities for us to maximize our growth and further enhance our strategic position, including, among other things, acquisitions, strategic alliances, and joint ventures potentially involving all types and combinations of equity, and acquisition alternatives. As a result, we may choose to raise additional funds to support those strategic initiatives.

**Overall Performance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total comprehensive income of $7.8 million for the three months ended December 31, 2024 (2023 - total comprehensive loss of $6.9 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income of $5.7 million for the three months ended December 31, 2024 (2023 - $2.9 million) including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking and validating income of $1.25 million for the three months ended December 31, 2024 (2023 - $nil)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $4.4 million for the three months ended December 31, 2024 (2023

- $ nil)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income before tax of $4.4 million for the three months ended December 31, 2024 (2023 - $2.6 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Net income the three months ended December 31, 2024, of $3.2 million (2023 - $2.6 million) and income per share (basic and diluted) for the three months ended December 31, 2024, of $0.02 (2023 - $0.02)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Cryptocurrency holdings of $38.6 million at December 31, 2024 (2023 - $25.6 million) reflecting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ 139,726.44 Sol with a market value of $38.1 million (September 30, 2023 - 100,763.02 Sol with a market value $20.8 million) and 3.17 bitcoin with a market value of $425,891 (September 30, 2024 - 56.25 bitcoin with a market value of $4.8 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Cash position of $1.3 million (September 30, 2024 - $1.8 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total assets of $74.6 million (September 30, 2024 - $28.9 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Shareholders' equity of $60.2 million (September 30, 2024 - $26.7 million)

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**RESULTS OF OPERATIONS**

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| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2024** | **2023** | **2022** |
| Total assets | $28903645 | $17054245 | $23892055 |
| Shareholders' equity | 26723624 | 16827769 | 23583763 |
| Income | 10671027 | (4498715) | 3131499 |
| Net income | 6607664 | (6282328) | 358456 |
| EPS | $0.04 | $(0.04) | $0.00 |
| Comprehensive income | 9345023 | (6479174) | (5612877) |

---

*Comparison of `the years ended September 30, 2024 and 2023*

The total comprehensive income for the year ended September 30, 2024 ("Fiscal 2024") increased $15,824,197 to $9,345,023 compared to a total comprehensive loss of $6,479,174 for the year ended September 30, 2023 ("Fiscal 2023"). The main reasons for the variance are as follows:

- Total investment income of $10,671,027 in Fiscal 2024 (2023 - loss of $4,498,715), an increase of $15,168,742, mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on dispositions of cryptocurrencies of $7,648,448 in Fiscal 2024 compared to $nil in Fiscal 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $1,160,891 in Fiscal 2024 compared to a realized loss of $1,178,765 in Fiscal 2023, mainly due to a realized gain on Animoca Brands Corporation Limited

("Animoca") of $1,785,473 offset by a loss realized on zkSNACKS Limited of $772,668. In Fiscal 2023 the Company realized losses of $471,116 on Isla Capital Limited AB Digital Strategies Fund ("Isla") and $707,649 on Lucy Labs Flagship Offshore Fund Rising Tide Portfolio ("Lucy Labs").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Unrealized gain on investments $1,064,911 in Fiscal 2024, an increase of $5,125,161 from a $4,060,250 unrealized loss in Fiscal 2023. The Fiscal 2024 unrealized gain was mainly due to a recovery of $827,227 on Lucy Labs and fair value increases of $121,849 and $$115,905 on Chia Network Inc. and NGRAVE NV, respectively. In Fiscal 2023 the unrealized loss of $4,060,250 was mainly due to an unrealized loss on Animoca of $4,314,020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Dividend income of $322,362 in Fiscal 2024 (2023 - $44,068) mainly due to increases in dividends from zkSNACKS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking and validating income of $271,245 in Fiscal 2024 (2023 - $nil).

- Operating expenses in Fiscal 2024 were $2,479,105 (2023 - $1,810,557), the increase of $668, 548 in operating losses was mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Stock-based compensation in Fiscal 2024 of $1,320,919 (2023 - $430,945), an increase of $889,974.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ General and administrative expenses in Fiscal 2024 of $344,096 (2023 - $198,052), an increase of $146,044

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Foreign exchange gain in Fiscal 2024 of $50,725 (2023 - loss of $346,669), a decrease of $397,394

- Income tax expense in Fiscal 2024 was $1,584,258 (2023 - recovery of $26,944), the increase mainly due to realized gains on the disposition of cryptocurrencies.

- In Fiscal 2024 the Other Comprehensive Income was $2,737,359 (2023 - loss of $196,846), an increase of $2,934,205, mainly due to the unrealized gain on cryptocurrencies.

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**Selected Quarterly Information**

The selected quarterly information below summarizes the financial information for the last eight quarters.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Dec-24** | **Sep-24** | **Jun-24** | **Mar-24** | **Dec-23** | **Sep-23** | **Jun-23** | **Mar-23** |
|  | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* |
| Income (loss) before taxes | 4.39 | 7.05 | (1.26) | (0.24) | 2.64 | (2.72) | (2.11) | (0.13) |
| Tax Recovery (expense) | (1.16) | (1.58) |  |  |  | 0.03 |  |  |
| Income (loss) for period | 3.23 | 5.46 | (1.26) | (0.24) | 2.64 | (2.69) | (2.11) | (0.13) |
| Net income (loss) per share (basic and diluted) | $0.02 | $0.04 | $(0.01) | $- | $0.02 | $(0.03) | $(0.01) | $(0.00) |
| Total comprehensive income (loss) | 7.83 | (3.80) | (1.52) | 7.74 | 6.93 | (3.45) | (1.62) | (0.07) |
| Total assets | 74.63 | 28.90 | 28.35 | 31.34 | 23.96 | 17.05 | 20.47 | 22.47 |
| Net book value | 60.20 | 26.72 | 27.88 | 31.17 | 23.79 | 16.83 | 20.25 | 22.21 |

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*Comparison of the three months ended December 31, 2024 and 2023*

The total comprehensive income for the three months ended December 31, 2024 ("Q1-25") increased $900,276 to $7,826,530 (2023 - $6,926,254) mainly due to:

- Realized gain on dispositions of cryptocurrencies in Q1-25 of $4,430,368 (2023 - $nil)

- Staking and validating income of $1,244,849 in Q1-25 ($2023 - $nil)

- In Q1-25 operating expenses increased $1,007,303 to $1,298,036, mainly due to the following:

- A $590,720 increase in stock-based compensation to $628,796

- A $228,597 increase in professional fees to $273,063, mainly due to higher legal expenses during Q1-25

- A $136,348 increase in consulting fees to $242,708

- A $154,350 increase in investor relations to $154,350 due to the Company starting investor relations and marketing initiatives

- A Foreign exchange gain of $247,700 in Q1-25 to $203,486 due to the appreciation of the United States dollar relative to the Canadian dollar during Q1-25

- Provision for income tax of $1,163,013 in Q1-25 compared to $nil in the prior period

- Unrealized gain on cryptocurrencies of $4,600,814 in Q1-25, a $316,563 increase from $4,284,251 in the prior period.

Total assets increased $45,728,532 from $28,903,645 at September 30, 2024, to $74,632,177 at December 31, 2024, primarily due to:

- A $12,985,993 increase in cryptocurrencies to $38,561,505 ($25,575,512 at September 30, 2024), and

- A $33,768,545 increase in intangible assets ($nil at September 30, 2024), due to the acquisition of the Cogent and OrangeFin assets.

Total liabilities increased to $14,434,465 from $2,180,021 at September 30, 2025, an increase of $12,254,444. The increase is mainly due to:

- A $6,606,561 increase in financial liabilities ($nil at September 30, 2024), representing the estimated present value of future common share issuances for the OrangeFin asset purchase

- A $4,156,214 increase in the credit facility ($nil at September 30, 2024), and

- A $1,163,013 increase in income taxes payable to $2,710,699 at December 31, 2024, from $1,547,686 at September 30, 2024.

Net book value increased $33,474,088 during the three-month period ending December 31, 2024, mainly due to:

- Total comprehensive income $7,826,530

- $2,897,683 of common shares issued due to option exercises and acquisitions, and

- $22,310,400 of future common share issuances for the Cogent acquisition credited to contributed surplus during the period.

------

**Financial and Capital Management**

**Outstanding Share Data**

---

| | |
|:---|:---|
| **At December 31, 2024** |  |
| Common shares outstanding: | 149637711 |
| Options to purchase common shares: | 13173221 |
| Restricted share units | 563669 |
| Warrants: | NIL |
| **At March 3, 2025** |  |
| Common shares outstanding: | 153153866 |
| Options to purchase common shares: | 10257066 |
| Restricted share units | 1113669 |
| Warrants: | 11535000 |

---

**Cash Flow**

For the three months ended December 31, 2024, cash and cash equivalents decreased $528,730 (2023 - increase of $13,679) to $1,279,322 (2023 - $1,940,959) due to $304,532 of net cash used in operating activities (2023 - $5,068), $38,115,922 of net cash provided by financing activities (2023 - $nil), and $38,340,120 of net cash used in investing activities (2023 - $18,747 provided by investing activities).

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements as of December 31, 2024, and as at the date of this MD&A.

**RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the three months ended December 31, 2024, the Company paid $15,796, (2023 - $30,000) for consulting services provided by an officer of the Company. At December 31, 2024, there is $nil (2023 - $30,000) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $25,338 (2023 - $18,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $18,000 (2023 - $18,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $113,873 (2023 - $5,000) for consulting services provided by a director and officer of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, the Company paid $5,000 (2023 - $5,000) in directors fees to a director of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

------

During the three months ended December 31, 2024, the Company paid $5,000 (2023 - $nil) in directors fees to a director of the Company. At December 31, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the three months ended December 31, 2024, $68,426 (2023 - $1,205) was charged for legal services by a firm of which an officer of the Company is a partner. At December 31, 2024, there is $68,426 of accounts payable to this related party (2023 - $1,361).

During the three months ended December 31, 2024, the Company's chairman provided a $10 million dollar credit facility to the Company, of which $4,294,768 had been advanced as at December 31, 2024.

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| **Three months ended December 31,** | **2024** | **2023** |
| Consulting fees | $**209007** | $88500 |
| Director fees | **10000** | 1000 |
| Stock-based compensation | **425292** | 38076 |
|  | $**642076** | $127576 |

---

At December 31, 2024, included in accounts payable and accrued liabilities is $68,426 (2023 - $31,361) owed to related parties.

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short-term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - December 31, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $- | $685662 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 38561505 |  |
|  | $**-** | $**38561505** | $**685662** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 25575512 |  |
|  | $**-** | $**25575954** | $**1512889** |

---

The Company defines its fair value hierarchy as follows:

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**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

(ii) Valuation *techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

(iii) *Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the three months ended December 31, 2024 and the year ended September 30, 2024.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | December 31, | September 30, | December 31, | December 31, |
|  | 2024 | 2024 | 2024 | 2024 |
| Investments | $685662 | $1512889 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

------

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying assets

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at December 31, 2024, and noted that a 20% decrease would result in a $137,132 decrease in fair value.

**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the three months ended December 31, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

The Company is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency the Company will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

------

The due diligence the Company performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency, and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at December 31, 2024, the Company holds $1,279,322 in cash and cash equivalents at high credit quality financial institutions (September 30, 2024 - $1,808,052). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

------

**Interest Rate Risk**

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies, mainly Solana; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

------

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at December 31, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $68,566 (September 30, 2024 - $151,289).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of December 31, 2024, is $1,237,509 (September 30, 2024 - $1,762,619). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $123,751 (September 30, 2024 - $176,262).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2024, the Company had cash and cash equivalents balance of $1,279,322 (September 30, 2024 - $1,808,052) to settle accounts payable and accrued liabilities of $561,585 (September 30, 2024 - $232,929). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Concentration Risk**

The Company is exposed to concentration risk as the majority of its assets are held in Solana and related validator operations. The value of these assets is highly dependent on the performance, stability, and adoption of the Solana network, as well as broader cryptocurrency market and economic conditions. Any adverse developments, including regulatory changes, security incidents, or network disruptions, could materially impact the Company's financial position. The Company continuously evaluates its exposure and risk management strategies to mitigate potential adverse effects.

------

**Regulatory Risk**

The regulatory environment for digital assets, including Solana, remains uncertain and continues to evolve. Changes in laws, regulations, or enforcement actions in key jurisdictions could impact the Company's ability to operate validator nodes, stake assets, or transact in Solana. Regulatory developments may also affect the liquidity, valuation, or classification of Solana under applicable financial reporting standards. The Company actively monitors regulatory changes and assesses potential impacts on its operations and financial position.

**Solana Governance Risk**

Solana's development and governance are significantly influenced by the Solana Foundation, which plays a key role in protocol upgrades, ecosystem growth, and validator coordination. While Solana operates as a decentralized blockchain, the Solana Foundation's decision-making authority could impact network stability, economic incentives, or technical direction in ways that may not align with the interests of all stakeholders. Any material changes initiated by the Solana Foundation, including governance proposals, tokenomics adjustments, or network upgrades, could affect the Company's validator operations and the value of its Solana and Solana-related assets. The Company continues to monitor governance developments and assess potential risks to its operations.

On or about March 6, 2025, Solana validators and stakeholders will begin voting on governance proposals SIMD- 0228 and SIMD-0123. SIMD-0228 aims to introduce a dynamic token emission model that could adjust Solana's inflation rate based on staking participation, potentially reducing annual inflation from 4.5% to as low as 0.87% if staking exceeds a certain threshold. SIMD-0123 proposes a mechanism where validator operators can share block rewards with their stakers. A lower emission rate may result in reduced validator rewards, though this could be offset by potential appreciation in SOL's value. The Company will monitor these developments and adjust its validator operations as needed to maintain efficiency and competitiveness.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency and currency risks arises in the normal course of the Company's business.

**OTHER INFORMATION**

This discussion and analysis of the financial position and results of operation as at March 3, 2025, should be read in conjunction with the Company's interim unaudited condensed financial statements for the three months ended December 31, 2024 and 2023, and Company's the consolidated financial statements for the year ended September 30, 2024 and 2023. Additional information can be accessed through the Company's public filings under the Company's SEDAR+ profile at www.sedarplus.ca.

**MANAGMENT'S RESPONSIBILITY FOR FINANCIAL INFORMATION**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

------

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

"Leah Wald"

Chief Executive Officer

March 3, 2025

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## Exhibit 99.90

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**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Douglas Harris, Chief Financial Officer** of **Sol Strategies Inc.,** certify the following:

1. ***Review***: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Sol Strategies Inc.** (the "issuer") for the interim period ended **December 31, 2024.**

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: March 3, 2025.

Signed "Douglas Harris"<br>_____________________________________<br>Doug Harris<br>Chief Financial Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.91

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**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Leah Wald, Chief Executive Officer** of **Sol Strategies Inc.**, certify the following:

1. ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Sol Strategies Inc. (the "issuer") for the interim period ended December 31, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: March 3, 2025.

Signed "Leah Wald"<br>_____________________________________<br>Leah Wald<br>Chief Executive Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.92

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**Sol Strategies Announces First Quarter 2025 Financial Results**

Toronto, Ontario--(Newsfile Corp. - March 3, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today released its fiscal first quarter 2025 financial results.

Investors are invited to access the fiscal first quarter financial results on the Company's website at <u>www.solstrategies.io</u>, and at <u>www.sedarplus.ca</u>.

Sol Strategies will hold a webcast and conference call at 4:30 p.m. Eastern Time today to discuss these financial results. To register to participate in the conference call, please use the dial-in instructions or webcast link below. The webcast will also be available for replay via the investor relations section of the Company's website <u>https://solstrategies.io/investors/</u>.

**Event Details:**

**Sol Strategies First Quarter 2025 Financial Results Webcast and Conference Call Webcast Date**: Monday, March 3, 2025, at 4:30 PM EST

**Live Call**: (800) 579-2543 Primary (US) or (785) 424-1789 (International)

**Webcast**: <u>https://event.on24.com/wcc/r/4865360/01F517A968FAF5655FC127A1EACBE989</u>

A replay of the webcast will be available on the company's investor relations website shortly after the event <u>https://solstrategies.io/investors/</u>.

CEO Leah Wald stated, "The impressive initial results from our staking and validator operations in the first quarter validate our strategy and reinforce our ability to deliver institutional-grade performance and reliability for institutional players entering the Solana staking market. Our continued acquisition and partnership strategy along with our proprietary technology development is rapidly expanding our capabilities, allowing us to capitalize on the growth of the Solana network. By providing transparency and infrastructure solutions, we are not only strengthening Solana's security and scalability but also positioning Sol Strategies as a key enabler of institutional adoption in this emerging market."

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

Media Contact: <u>sol@kcsa.com</u>

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**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the timing for the Company's release of its financial results and the Company's financial outlook. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

![](exhibit99-92x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/243132</u>

------

## Exhibit 99.93

------

**Sol Strategies Provides Update on SOL Purchases**

Toronto, Ontario--(Newsfile Corp. - March 7, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, has made additional strategic purchases of SOL as part of its ongoing growth initiatives.

**Recent SOL Purchases Update**

During the week ending March 7, 2025, Sol Strategies exercised call options with an exercise price of USD $130 per SOL to acquire 24,000 SOL for a total cost of CAD $4,783,785 (USD $3,343,200), reflecting an average purchase price of CAD $199 (USD $139) per SOL, including option premium costs. This continued accumulation aligns with the Company's strategy of expanding its SOL holdings to support its validator operations and long-term investment approach in the Solana ecosystem.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about Sol Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the Company's Solana holdings and the Company's financial outlook. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

ICR

John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>Tel: 203-682-8284

**Company Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

SOURCE: <u>Sol Strategies Inc.</u>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/243676</u>

------

## Exhibit 99.94

------

**Sol Strategies Announces Definitive Agreement to Acquire Leading Validators and Appointment of Michael Hubbard as Chief Strategy Officer**

Toronto, Ontario--(Newsfile Corp. - March 10, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company"), (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain ecosystem, is pleased to announce that on March 7, 2025 it signed a definitive agreement to acquire three additional Solana validators (the "Acquisition"), including the Laine Solana validator, as well as <u>stakewiz.com</u>, one of the most viewed websites in the Solana staking ecosystem, as previously disclosed in the Company's February 14, 2025 <u>news release</u>. The Laine validator, as of March 6, 2025, had 1.5 million SOL (CAD $317 million) delegated to it.

Laine is a leader in blockchain infrastructure and validator services, known for its trustworthy reputation, stake weight, reliability, and ecosystem contributions inside the Solana ecosystem. Laine operates validator nodes across Solana, SUI, and Monad, providing crucial infrastructure for decentralized networks. This acquisition expands Sol Strategies' position as an institutional staking provider and its validator operations significantly.

Upon completion of the Acquisition, Sol Strategies will have increased its total staked SOL to 3.3 million SOL (CAD $706 million) across its validator operations, an increase since February 28, 2025, of approximately 101%. The transaction represents a key step in Sol Strategies' mission to scale its validator business, enhance its infrastructure and technology capabilities, and provide the premier institutional-grade staking solution and leading customer experience available across the Solana ecosystem.

*The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase.com/converter/sol/cad as of 9:20 AM ET on March 6, 2025. The staked SOL amounts are available on StakeWiz.*

**Acquisition Terms**

The Acquisition will be completed for a purchase price of CAD $35 million payable through a combination of cash and Sol Strategies common shares and warrants. Pursuant to the terms of the definitive agreement, Sol Strategies will acquire a 100% ownership interest in the Validators and all ancillary rights and assets required for their management (the "Purchased Assets").

Total consideration for the Purchased Assets includes:

* CAD $5 million in cash or stablecoins (payable upon closing)

* 5 million common shares of Sol Strategies issued at closing at a price of $3.00 per share

* An additional 5 million Common Shares to be issued on the one-year anniversary of the date at a price of $3.00 per share

* 4.5 million common share purchase warrants (the "Warrants"), each exercisable into one common share at an exercise price of $2.98 per Common Share, vesting monthly over a 36-month period, each Warrant exercisable for a period of 3 years from vesting

The Common Shares issued as consideration for the Acquisition, including the Common Shares issuable upon exercise of the Warrants, will be subject to a statutory four-month lock-up provision upon issuance.

The Acquisition is subject to customary closing conditions for a transaction of this nature. No finders' fees will be paid, and the Acquisition is an arm's length transaction.

------

**Michael Hubbard Joins Sol Strategies as Chief Strategy Officer**

In connection with the Acquisition, Sol Strategies is thrilled to announce that Michael Hubbard, the founder of Laine, will be joining the Company as Chief Strategy Officer ("CSO").

Hubbard brings extensive expertise in validator operations, blockchain infrastructure, and decentralized network analytics. As the driving force behind Laine, he has built a reputation for developing industry-leading Solana staking tools and validator services. Stakewiz.com's analytics platform serves as a crucial resource for the Solana ecosystem, offering validator performance insights, staking guidance, and real-time network analytics. His appointment as CSO strengthens Sol Strategies' position at the forefront of Solana infrastructure while reinforcing the company's commitment to becoming a key contributor to the ecosystem's growth and a leader in industry innovation and thought leadership.

"Michael's appointment as our Chief Strategy Officer represents a transformative addition to our leadership team," said Leah Wald, CEO of Sol Strategies. "Beyond his technical expertise in validator operations, Michael brings strategic vision that will accelerate our growth initiatives and enhance our value proposition. His proven ability to identify emerging opportunities within the Solana ecosystem will be instrumental as we execute our growth strategy and develop proprietary technologies that address the evolving needs of institutional stakers. Michael's integration strengthens our competitive positioning and reinforces our commitment to building best-in-class Solana infrastructure."

In his role as CSO, Hubbard will oversee the strategic direction of Sol Strategies' validator operations, with a focus on growth, efficiency, and innovation. His integration into the company seeks to ensure a seamless transition of Laine's technical expertise and validator assets into the Sol Strategies platform, while also driving the development of next generation staking solutions that meet the rigorous demands of institutional investors and ecosystem participants.

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) is a publicly traded Canadian company actively investing in and providing infrastructure for the Solana blockchain ecosystem. The Company focuses on validator operations, staking rewards, and strategic investments in Solana-based projects, enabling shareholders to participate in the decentralized finance and blockchain infrastructure landscape. For more information, visit <u>www.solstrategies.io</u>.

A copy of this news release and all related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Laine**

Laine is a blockchain infrastructure leader specializing in validator operations and decentralized network solutions. The company's analytics platform provides Solana users with critical validator performance data, staking insights, and network analysis tools. Laine's advanced staking solutions, robust security practices, and commitment to transparency have made it one of the most trusted entities in the Solana ecosystem. For more information, visit <u>https://stakewiz.com</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition and appointment of the new CSO, (iii) expectations regarding the timing of Closing and the Company's future development opportunities in connection with the Acquisition, and (iv) the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include statements regarding the completion of the Acquisition and its intended impact on the Company, including its annual percentage yield from staking operations. There is no assurance that the Acquisition will be completed or that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

ICR

John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>Tel: 203-682-8284

**Company Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**Source:** Sol Strategies Inc.

------

![](exhibit99-94x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/243955</u>

------

## Exhibit 99.95

------

**Sol Strategies Announces Successful Completion of Laine Validator Acquisition**

Toronto, Ontario--(Newsfile Corp. - March 17, 2025) - Sol Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) ("Sol Strategies" or the "Company", formerly, "Cypherpunk Holdings Inc"), a publicly traded Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain ecosystem, is pleased to announce that on March 17, 2025, it completed the acquisition of three validators, including the Laine validator, as well as <u>stakewiz.com</u> (the "Acquisition"), as previously disclosed in the Company's March 10, 2025 news release.

The integration of Laine's validator network and Stakewiz.com significantly strengthens Sol Strategies' position as a leading institutional staking solutions provider within the Solana ecosystem. By incorporating stakewiz.com's validator dashboard, Sol Strategies enhances transparency, analytics, and convenience for delegators, ensuring a seamless staking experience.

Additionally, the appointment of Michael Hubbard as Chief Strategy Officer further elevates Sol Strategies' executive leadership team, bringing deep industry expertise to drive the company's strategic growth initiatives. His leadership is expected to foster high-value partnerships, accelerate innovation, and reinforce Sol Strategies' standing as a premier institutional staking provider within the Solana ecosystem.

**Validator Operations Update**

As of March 15, 2025, Sol Strategies has increased its total staked SOL to 3,351,617 SOL (CAD $649,308,761 million) across its validator operations, from 1,653,752 SOL on March 3, 2025, an approximately 102% increase in total staked SOL since that date. The Company now manages staked SOL across its Solana validators as follows:

* 1,505,399 SOL (CAD $291,640,948) on the newly acquired Laine validator;

* 690,571 SOL (CAD $133,784,319) on Sol Strategies' Cogent Crypto validator;

* 682,488 SOL (CAD $291,640,948) on Sol Strategies' Orangefin Ventures validator; and

* 473,159 SOL (CAD $91,655,093) on Sol Strategies' proprietary validator,

of which 264,275 SOL is delegated by the Company.

The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase (<u>https://www.coinbase.com/converter/sol/cad</u>) as of 9:18 AM ET on March 15, 2025.

**Acquisition Terms**

The Acquisition will be completed for a purchase price of CAD $35 million payable through a combination of cash and Sol Strategies common shares and warrants. Pursuant to the terms of the definitive agreement, Sol Strategies will acquire a 100% ownership interest in the Validators and all ancillary rights and assets required for their management (the "Purchased Assets").

Total consideration for the Purchased Assets includes:

* CAD $5 million in cash (paid on closing):

* 5 million common shares of Sol Strategies issued at closing at a price of $3.00 per share

* An additional 5 million common shares to be issued on the one-year anniversary of the closing date at a price of $3.00 per share

------

* 4.5 million common share purchase warrants (the "Warrants"), each exercisable into one common share at an exercise price of $2.98 per Common Share, vesting monthly over a 36-month period, each Warrant exercisable for a period of 3 years from vesting

The common shares issued as consideration for the Acquisition, including the common shares issuable upon exercise of the Warrants, will be subject to a statutory four-month lock-up provision upon issuance.

Leah Wald, CEO of Sol Strategies stated, "This acquisition represents a pivotal step forward for Sol Strategies, enhancing our business across three critical dimensions. The integration of Laine's validator assets significantly scales our staking infrastructure and solidifies our position as a leader in institutional staking. Stakewiz.com brings unparalleled transparency and engagement tools, setting a new standard for the customer experience in staking analytics. And with the addition of Michael Hubbard-an industry veteran with deep expertise in the Solana ecosystem-our leadership team gains a seasoned innovator who will help navigate emerging opportunities and drive strategic expansion in this rapidly evolving space. Together, these advancements propel Sol Strategies to new heights in staking infrastructure and innovation."

**About Sol Strategies**

Sol Strategies Inc. (CSE: HODL) is a publicly traded Canadian company actively investing in and providing infrastructure for the Solana blockchain ecosystem. The Company focuses on validator operations, staking rewards, and strategic investments in Solana-based projects, enabling shareholders to participate in the decentralized finance and blockchain infrastructure landscape. For more information, visit <u>www.solstrategies.io</u>.

A copy of this news release and all related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the Acquisition and the appointment of a new Chief Strategy Officer, (iii) expectations regarding the Company's future development opportunities in connection with the Acquisition, and (iv) the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding completion of the Acquisition and its intended impact on the Company, the Company's future investing plans and staking plans. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

Sol Strategies is an independent organization in the Solana ecosystem. Sol Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with Sol Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by Sol Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

**Investor Contact:**

ICR

John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>Tel: 203-682-8284

**Company Contact:**

Doug Harris

Chief Financial Officer <br><u>doug@solstrategies.io</u> <br>Tel: 416-480-2488

**Source:** Sol Strategies Inc.

SOURCE: <u>Sol Strategies Inc.<br></u>

<br> ![](exhibit99-95x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/244830</u>

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## Exhibit 99.96

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**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. ("**Sol Strategies**" or the "**Company**")<br>217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

March 17, 2025

**Item 3 - News Release:**

The news releases announcing the material change referred to in this report were disseminated over Newsfile on March 10, 2025 and March 17 , 2025 and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On March 10, 2025, the Company announced that it entered into a definitive agreement dated March 7, 2025 to acquire three validators and certain assets related to the validators from Michael Hubbard (the "**Acquisition**"). In addition to the validators, Michael Hubbard joined as the Company's new Chief Strategy Officer. The Acquisition was completed on March 17, 2025.

**Item 5 - Full Description of Material Change:**

**5.1 Full Description of Material Change**

On March 10, 2025, the Company announced that it entered into an asset purchase agreement dated March 7, 2025 for the purchase and sale of three blockchain validators and certain other assets listed in the asset purchase agreement (the "**Acquisition**") with Michael Hubbard (the "**Seller**").

In consideration for the purchased assets, the Company paid the Seller CAD$5,000,000 and issued 5,000,000 common shares in the capital of the Company ("**Common Shares**") to the Seller at closing of the Acquisition. The Company also issued 4,500,000 common share purchase warrants to the Seller, each exercisable into one Common Share and vesting monthly over a 36-month period following the closing of the Acquisition. An additional 5,000,000 Common Shares will be issued to the Seller on the one-year anniversary of the Acquisition.

The Acquisition was completed on March 17, 2025 and Sol Strategies assumed full operational control of the purchased validators and related purchased assets. In addition to the Acquisition, Michael Hubbard joined as the Company's new Chief Strategy Officer.

------

**5.2 Disclosure for Restructuring Transactions**

Not applicable.

**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer <br>416-480-2488 <br>doug@solstrategies.io

**Item 9 - Date of Report:**

March 17, 2025

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## Exhibit 99.97

------

**EXECUTION VERSION**

**<u>ASSET PURCHASE AGREEMENT</u>**

**THIS AGREEMENT** is entered into as of the 7th day of March, 2025

BETWEEN:

**MICHAEL HUBBARD**

(the "**Seller**")

- and -

**SOL STRATEGIES INC.**

(the "**Buyer**")

**W I T N E S S E T H**

**WHEREAS**, the Seller owns and carries on the business of operating and managing nodes that validate transactions on the Solana, SUI and Monad blockchain networks and staking tokens on such networks (the "**Business**");

**AND WHEREAS**, the Seller wishes to sell and assign to the Buyer, and the Buyer wishes to purchase and assume from the Seller title to and all rights and obligations in the Purchased Assets and the Assumed Liabilities, subject to the terms and conditions set forth herein.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**Article 1**

**PURCHASE AND SALE OF ASSETS**

1.1 <u>Assets to be Transferred</u>. Subject to the terms and conditions of this Agreement, the Seller agrees to sell to the Buyer, and the Buyer agrees to purchase, free and clear of all Encumbrances, all right, title and interest in, to and under the assets of the Business (but excluding the Excluded Assets and the Excluded Liabilities) (collectively the "**Purchased Assets**") including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Validators</u>. A 100% ownership interest in the Seller's validator on the Solana blockchain, including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such validator in the Business (the "**Solana Validator**"), a 100% ownership interest in the Seller's validator on the SUI blockchain, including main networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such validator in the business (the "**SUI Validator**"), and a 100% ownership interest in the Seller's validator on the Monad blockchain, including test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of such validator in the Business (the "**Monad Validator**", and together with the Solana Validator and the SUI Validator, the "**Blockchain Validators**"), which includes, in respect of the Blockchain Validators, but is not limited to:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the cryptographic keys that are publicly available and accessible for the purpose of identifying the Blockchain Validators on the applicable blockchain networks ("**Public Keys**"), specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for the Solana Validator on the main network, the authorized withdrawer account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** (which is to be transferred to the Buyer by updating the Public Key and pairing it with a key or account owned by the Buyer), the identity account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** and the vote account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for the Solana Validator on the test network, the authorized withdrawer account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** (which is to be transferred to the Buyer by updating the Public Key and pairing it with a key or account owned by the Buyer), the identity account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information]*** and the vote account with the Public Key ***[Redacted - Commercially Sensitive Confidential Information] ;***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) for the SUI Validator on the test network and the main network, the Public Key(s) for the SUI test network and main network

(being the same Public Key for both) ***[Redacted - Commercially Sensitive Confidential Information]*** ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) for the Monad Validator on the test network, the Public Key(s) for the Monad test network ***[Redacted - Commercially Sensitive Confidential Information]*** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the confidential cryptographic keys that are paired with the Public Keys and provide exclusive access rights to the Blockchain Validators' accounts set out in Section 1.1(a)(i) and authorize the holder to perform activities by the Blockchain Validators (the "**Private Keys**");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all rights, authorities, access credentials, configuration files and relevant documents related to the operation, configuration and setup of the ***[Redacted - Commercially Sensitive Information],*** and access and use of the services for the management, automation and optimization of staking operations through ***[Redacted - Commercially Sensitive Information]***, including but not limited the ***[Redacted - Commercially Sensitive Information]***:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ***[Redacted - Commercially Sensitive Confidential Information]***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) ***[Redacted - Commercially Sensitive Confidential Information]*** ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ***[Redacted - Commercially Sensitive Confidential Information]***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all rights and authorities relating to the cloud servers or similar services provided by third party vendors as further set out in <u>Exhibit A</u> that support the Blockchain Validators and operations of the Business (the "**Servers**"), including all access credential and account information, and all agreements between such third parties and the Seller (the "**Server Agreements**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>a</u>ll rights, title, and interest in the Seller's third-party commercial agreements, licenses, and subscriptions supporting the Purchased Assets, including both contracts, terms and conditions and purchase orders for software solutions and services for IT infrastructure, hosting, security configurations, software development; data backup, cybersecurity monitoring, communication; industry standard compliance, asset management; and network connectivity and allocations, with each of ***[Redacted - Commercially Sensitive Confidential Information] (the "Assumed Contracts"), which each relate to www.stakewiz.com;***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all rights and authorities, including those for administration and operation, associated with the communication and collaboration tools for the launching of the Solana Validator and the SUI Validator on the main networks of the Solana blockchain and SUI blockchain, and for the launching of the Monad Validator on the test networks of the Monad blockchain;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intellectual Property</u>. All Seller Intellectual Property listed in <u>Exhibit B</u> attached hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Assets located on Servers</u>: All of the Seller's interest in all software, scripts, logs, notes, code, keypairs, private keys and other Intellectual Property existing on any Server at Closing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Property</u>. All instruction manuals, service bulletins, operational procedures, security protocols and other similar documentation, lists of customers and suppliers (together with sales and purchase histories), price lists, material and system specifications, prototypes, testnet and sandbox environments, equipment or inventory used for research, marketing and development solely in connection with the Business, and other documents or information generated or used exclusively in the Seller's operation of the Business ("**Business Records**"), together with the goodwill of the Business, in each case, other than with respect to the Excluded Assets and Excluded Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All rights to receive mail, email and other communication relating to the Purchased Assets.

1.2 <u>Excluded Assets</u>. Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere in this Agreement, the following assets of the Seller are not part of the sale and purchase contemplated hereunder, are excluded from the Purchased Assets and shall remain the property of the Seller after the Closing (collectively, the "**Excluded Assets**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) credit agreements, bank agreements, promissory notes, guarantees, letters of credit, letters of guarantee, negotiable instruments, any lease of any property that would be required to be classified and accounted for as a capital lease in accordance with generally accepted accounting principles and any mortgages and other security agreements that create an Encumbrance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all claims for and rights to receive refund of taxes and other governmental charges relating to the Business for any periods arising prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all claims, actions, deposits, prepayments, refunds, causes of action, rights of recovery, rights of set off, and rights of recoupment of any kind or nature (including any such item relating to taxes) relating to the Purchased Assets arising prior to the Closing Date or relating to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Purchase Price and all other rights of the Seller under this Agreement, any Transfer Document to which Seller is a party, and any other agreements entered into by the Seller pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all contracts with any independent contractors or employees of the Seller prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all contracts that are not Assumed Contracts or Server Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all cash and digital assets and/or tokens owned or held by the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all bank accounts or similar accounts of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all books and records of the Seller, including, without limitation, tax returns relating to the Excluded Assets or Excluded Liabilities, and any documentation contained within the Seller's systems that are not used in connection with the Business, other than the Business Records;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any of the Seller's employee and personnel records, files, papers, data and related information, including any correspondence related thereto, in whatever form;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any equity interests of the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all certificates for insurance, binders for insurance policies and insurance, and claims and rights thereunder and proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) all rights to receive mail, email and other communications relating to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any attorney-client privilege and any documents or other information covered by attorney-client privilege, the attorney work product doctrine or other similar protection with respect to this Agreement, any Transfer Document, any other agreement entered into or delivered in connection with this Agreement, and the transactions and matters contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) all claims of the Seller against third parties relating to the Business or the Purchased Assets, whether choate or inchoate, known or unknown, contingent or non- contingent for any period prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) any right to, claim to, or interest in any and all airdrops relating to the Business of any and all digital assets distributed or claimable prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) all hardware owned by the Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) any legal or beneficial interest in the shares of ***[Redacted - Commercially Sensitive Confidential Information]*** or other shares held by the Seller; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) any other right, property or asset of the Seller that is not a Purchased Asset.

1.3 <u>Ownership Rights of the Buyer</u>. The Seller and the Buyer acknowledge that after the closing of the transaction contemplated by this Agreement, all rights, title and interest in, to and under the Purchased Assets will be owned by the Buyer one hundred percent (100%) and, subject to applicable law and rules and regulations, and technical limitations of the applicable blockchains underlying the Blockchain Validators, the Buyer shall have the exclusive right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) access, manage, operate, control and otherwise use and exploit the Blockchain Validators and all components thereof in the conduct of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) license or permit any third party to access, manage, operate or otherwise use or exploit the Blockchain Validators as the Buyer determines within their sole discretion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) control and manage all aspects of the operation of the Blockchain Validators, including the generation, management, and safeguarding of the Blockchain Validators' Private Keys and operational decision making authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all profits generated by the Blockchain Validators; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) sell, assign, transfer, convey and deliver good and marketable title of the Purchased Assets to a third party in whole or in part, without prior written notice or consent to the Seller.

**Article 2**

**LIABILITIES**

2.1 <u>Assumed Liabilities</u>. Under this Agreement, "**Liabilities**" shall mean liabilities, claims, indebtedness, product warranty, endorsement, losses, costs, expenses, obligations or responsibilities, whether known, unknown, direct, indirect, absolute, contingent or otherwise. At Closing, the Buyer shall assume, agree to perform or discharge, indemnify the Seller against, and otherwise have responsibility for any Liability arising out of or relating to the Buyer's ownership or operation of the Business and the Purchased Assets on or after the Closing Date, including any Liability for taxes (the "**Assumed Liabilities**"). Notwithstanding the foregoing, it is acknowledged and agreed by the parties that Assumed Liabilities shall only include Liabilities arising on or after the Closing Date and that any present or past Liabilities and any Liabilities that exist as a result of the Seller's actions prior to the Closing Date shall remain with the Seller.

2.2 <u>Excluded Liabilities</u>. The Buyer will not and does not assume, agree to perform or discharge, or indemnify the Seller against, or otherwise have any responsibility for, the Liabilities of the Seller, other than the Assumed Liabilities, whether arising prior to, on or after the Closing Date (the "**Excluded Liabilities**"), including the following, which the Seller will perform and discharge when due:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all present and future Liabilities with respect to the Excluded Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Liability under any Server Agreement or Assumed Contract that arises out of or relates to any actual or alleged breach of such Server Agreement or Assumed Contract that occurred prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Liability arising out of or relating to the Seller's ownership or operation of the Business and the Purchased Assets prior to the Closing Date, including any liability for taxes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liabilities of the Seller in respect of any present or former employees or independent contractors, including in respect of their employment or service or the termination thereof.

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**Article 3**

**PURCHASE PRICE - PAYMENT**

3.1 <u>Purchase Price</u>. The aggregate purchase price for the Purchased Assets shall be (collectively, the "**Purchase Price**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) CA$5,000,000 to be delivered to the Seller at Closing (the "**Cash Consideration**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 5,000,000 common shares in the capital of the Buyer ("**Common Shares**") at a price of CA$3.00 per Common Share to be delivered to the Seller at Closing (the "**Closing Share Consideration**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 5,000,000 Common Shares at a price of CA$3.00 per Common Share (the "**Remaining Share Consideration**" and together with the Closing Share Consideration, the "**Share Consideration**") to be issued one (1) year from the Closing Date in accordance with Section 3.2(c); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 4,500,000 common share purchase warrants ("**Warrants**"), vesting monthly in 36 substantially equal tranches, with each Warrant entitling the Seller to purchase one Common Share at a price of CA$2.98 per Common Share within 36 months from the their respective vesting dates (the "**Warrant Consideration**").

3.2 <u>Payment of Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer shall pay the Cash Consideration to the Seller on Closing by way of wire transfer of immediately available funds or such other method as may be agreed upon by the Buyer and Seller, and free from any restriction, condition, deduction, set-off (other than as anticipated under clause 3.8 below). The Buyer may pay the Cash Consideration in USD Coin ("**USDC**") and the value of each USDC delivered as payment for the Cash Consideration will be US$1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer shall pay the Closing Share Consideration to the Seller at Closing by issuing 5,000,000 Common Shares, registered in accordance with the registration instructions provided by the Seller to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Buyer shall pay the Remaining Share Consideration to the Seller by issuing 5,000,000 Common Shares on the date that is one (1) year from the Closing Date, registered in accordance with registration instructions provided by the Seller to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Buyer shall pay the Warrant Consideration to the Seller at Closing by issuing 4,500,000 Warrants, registered in accordance with the registration instructions provided by the Seller to the Buyer.

<u>3.3</u> <u>Securities Law Considerations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Common Shares and the Common Shares underlying the Warrants to be issued to the Seller pursuant to Sections 3.1(b), 3.1(c) and 3.1(d) will be subject to all applicable securities laws of each of the provinces and territories of Canada and the policies and regulations of the Canadian Securities Exchange (the "**CSE**"), as they may be promulgated or amended from time to time (collectively, the "**Applicable Securities Laws**") and issued pursuant to available prospectus exemption under Applicable Securities Laws. The Common Shares and the Common Shares underlying the Warrants will be subject to a four month and one day hold period pursuant to Applicable Securities Laws. The certificates representing the Common Shares and Warrants shall bear the legends required by applicable laws and stock exchange rules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The issuance of the Share Consideration and Warrant Consideration is conditional upon such issuance being exempt from the requirements as to the filing of a prospectus and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the issuance of such Common Shares or upon the issue of such orders, consents or approvals as may be required to permit such issuance without the requirement of filing a prospectus or delivering an offering memorandum or similar document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Forthwith after the Closing Date, the Buyer shall file such forms and documents as may be required under Applicable Securities Laws, which, without limiting the generality of the foregoing, shall include a Form 72-503F as prescribed by Ontario Securities Commission Rule 72-503 *Distributions Outside Canada*.

3.4 <u>Trading Restrictions.</u> The Common Shares issuable pursuant to the Share Consideration and Common Shares underlying the Warrants will, unless as otherwise permitted hereunder, be subject to voluntary resale restrictions whereby the Seller shall not sell more than 15% of the five**-** day ADV in any single trading day. "**ADV**" means the average daily volume of the Common Shares traded on the CSE calculated by dividing the total volume of Common Shares traded on the CSE for such period by five (5).

3.5 <u>Additional Obligations of the Parties</u>. After the Closing, the parties shall from time to time at the request of the other party, and without further cost or expense to the requesting party, use commercially reasonable efforts to execute and deliver such other instruments of conveyance and take such other action as either party may reasonably request in order to consummate the transactions contemplated hereby and to vest in the Buyer good and marketable title to the Purchased Assets being transferred hereunder.

3.6 <u>Allocation of the Purchase Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Buyer and the Seller hereby agree to the allocation of the Cash Consideration, the Closing Share Consideration and the Warrant Consideration among the Purchased Assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 90% to the Blockchain Validators and other Software; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 10% to the goodwill of the Business (other than the Excluded Assets) and other intangible property.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Buyer and the Seller hereby agree to the allocation of the Remaining Share Consideration among the Purchased Assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 100% to the Blockchain Validators and other Software.

The parties shall file all tax returns consistent with the foregoing allocation.

3.7 <u>Transfer Taxes</u>. Each party to this Agreement acknowledges that the Purchase Price is exclusive of all applicable value-added, goods and services, harmonized sales, sales, retail sales, use, consumption, customs, excise, stamp, transfer, or similar taxes, duties or charges ("**Transfer Taxes**"). All Transfer Taxes imposed or levied by reason of, in connection with or attributable to this Agreement and the transactions contemplated hereby shall be borne by the Seller. The parties shall cooperate with each other to the extent reasonably requested and legally permitted to minimize any such Transfer Taxes. The party required by law to file a tax return with respect to such Transfer Taxes shall do so within the time period prescribed by law.

3.8 <u>Withholding Tax.</u> The Buyer shall be entitled to deduct or withhold from any consideration or amount otherwise payable or deliverable to the Seller under this Agreement, such amounts as the Buyer may reasonably determine is required to be deducted and withheld with respect to such payment under applicable law. Without limiting the generality of the foregoing, the parties shall use commercially reasonable efforts to cooperate to mitigate or eliminate any such withholding to the maximum extent permitted by applicable law. The Buyer shall notify the Seller of its intent to withhold at least five (5) business days prior to the relevant payment date with a written explanation substantiating the requirement to deduct or withhold. To the extent that amounts are so deducted or withheld, such deducted or withheld amounts shall be treated for all purposes hereof as having been paid to the Seller, in respect of which such deduction or withholding was made, provided that such deducted or withheld amounts are actually remitted to the appropriate government authority. To the extent that the amount so required to be deducted or withheld from any payment to the Seller exceeds the cash component, if any, of the consideration otherwise payable to such person, the Buyer is hereby authorized to sell or otherwise dispose of such portion of the Share Consideration or Warrant Consideration issuable to the Seller as is necessary to provide sufficient funds to the Buyer to enable it to comply with such deduction or withholding requirement, and the Buyer shall notify the Seller thereof and remit the applicable portion of the net proceeds of such sale (after deduction of all fees, commissions or costs in respect of such sale) to the appropriate government authority and shall remit to such holder any unapplied balance of the net proceeds of such sale. Any sale will be made at prevailing market prices and the Buyer shall not be under any obligation to obtain or indemnify any Seller in respect of a particular price for the Share Consideration or Warrant Consideration so sold.

**Article 4**

**CLOSING**

4.1 <u>Place and Time of Closing.</u> The closing of the transactions contemplated by this Agreement (the "**Closing**") shall take place virtually by exchange of confirmatory emails of the parties, on or before the second day after all of the conditions to closing set forth in this Article 4 are either satisfied or waived, or at such other time, date or place as the parties may mutually agree in writing (the "**Closing Date**"), provided that if Closing has not occurred prior to the date which is 30 days after the date of this Agreement (the "**Outside Date**"), then this Agreement may be terminated in accordance with Article 9. At the Closing, the Seller will deliver to the Buyer good and marketable title to the Purchased Assets free and clear of any and all Encumbrances.

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4.2 <u>Conditions to the Buyer's Obligation to Close</u>. The obligation of the Buyer to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Buyer), on or before the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Delivery of Purchased Assets**. The Seller shall have delivered or made available to the Buyer the Purchased Assets at Closing. In the case of the Assumed Contracts and Server Agreements, subject to Section 5.3, the Seller shall have ensured the Buyer's ability to use and benefit from the accounts with such third parties at Closing, by either (i) providing all necessary credentials, passwords and administrative access to the accounts, licenses or services; or (ii) where the Buyer already maintains its own account with the relevant third party, cooperate with the Buyer to facilitate the transition of relevant configuration, data, or account settings (including password reset) from the Seller's account to the Buyer's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Seller to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby shall have been duly performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Buyer's Consents and Approvals**. The Buyer shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including approval (or conditional approval in the case of CSE approval, which may be in the form of the Buyer not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Buyer posts notice of such transactions) of the CSE for listing and posting for trading the Share Consideration and Warrant Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Seller's Consents and Approvals**. Subject to Section 5.3, the Seller shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Safe Harbour Certificate**. The Seller shall have delivered to the Buyer a safe harbour certificate in customary form and reasonably satisfactory to the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Seller's Certificate**. The Seller shall have delivered to the Buyer a certificate of the Seller certifying (i) the continued accuracy of the representations and warranties contained in Article 6 (except those representations and warranties that address matters only as of a specified date, which shall be accurate as of that specified date), except where the failure of such representations and warranties to be accurate would not have a material adverse effect on the Buyer, and (ii) the conditions set forth in Section 4.2(b) have been satisfied, in form and substance reasonably satisfactory to the Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Transfer Documents**. The Seller shall have executed and delivered to the Buyer such bills of sale, assignments, endorsements and other good and sufficient instruments of conveyance and transfer reasonably satisfactory to the Buyer as shall be effective to vest in the Buyer all of the Seller's right, title and interest in and to the Purchased Assets, including but not limited to an Intellectual Property assignment in form and substance reasonably satisfactory to the Buyer (collectively, the "**Transfer Documents**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Assigned Contracts.** The Seller shall have executed and delivered an assignment agreement pursuant to which the Server Agreements and Assumed Contracts, and all rights thereunder are transferred to the Buyer as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Hubbard Independent Contractor Agreement.** The Buyer shall have received an independent contractor agreement for Michael Hubbard, in a form satisfactory to both parties ("**Hubbard Independent Contractor Agreement**") and duly executed by the Buyer (or an affiliate) and Michael Hubbard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Non**-**Competition Agreement**. The Buyer shall have received a non-competition agreement in a form satisfactory to both parties ("**Non-Competition Agreement**") and duly executed by the Buyer (or an affiliate) and Michael Hubbard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Release of Encumbrances**. All Encumbrances of the Purchased Assets shall have been released and all registrations as filings related thereto discharged (or undertakings to discharge satisfactory to Buyer shall have been given).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Other**. The Buyer shall have received such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Buyer, as may be required to give effect to this Agreement.

4.3 <u>Conditions to the Seller's Obligation to Close</u>. The obligation of the Seller to close the transactions contemplated by this Agreement is subject to the fulfillment (either by satisfaction or by written waiver by the Seller), on or before the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Performance of Agreements and Covenants.** Each and all of the agreements and covenants of the Buyer to be performed and complied with pursuant to this Agreement and the other agreements contemplated hereby prior to the Closing shall have been duly negotiated, performed and complied with by it in all material respects, and this Agreement shall have been duly executed and delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Buyer's Certificate**. The Buyer shall have delivered to the Seller a certificate of an officer of the Buyer certifying (i) the continued accuracy of the representations and warranties contained in Article 7 (except those representations and warranties that address matters only as of a specified date, which shall be accurate as of that specified date), except where the failure of such representations and warranties to be accurate would not have a material adverse effect on the Seller, and (ii) the conditions set forth in Section 4.3(a) have been satisfied, in form and substance reasonably satisfactory to the Seller.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Delivery of Purchase Price**. The Buyer shall have delivered to the Seller the Cash Consideration and the Closing Share Consideration as set out in Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Buyer's Consents and Approvals**. The Buyer shall have obtained all approvals necessary to be obtained in order to consummate the transactions contemplated hereby, including approval (or conditional approval in the case of CSE approval, which may be in the form of the Buyer not receiving any objection from the CSE to such transactions during the requisite five (5) business day period after the Buyer posts notice of such transactions) of the CSE for listing and posting for trading the Share Consideration and Warrant Consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Corporate Authorizations**. The Buyer shall have delivered to the Seller certified copies of (i) the constating documents of the Buyer and (ii) resolutions of the directors of the Buyer approving the entering into and completion of the transactions contemplated by this Agreement, in form and substance reasonably satisfactory to the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Transfer Documents**. The Buyer shall have executed and delivered to the Seller the Transfer Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Hubbard Independent Contractor Agreement.** The Buyer shall have executed and delivered to the Seller the Hubbard Independent Contractor Agreement in a form satisfactory to both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Non**-**Competition Agreement**. The Buyer shall have executed and delivered to the Seller the Non-Competition Agreement in a form satisfactory to both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Warrant Certificate**. The Buyer shall have executed and delivered to the Seller a warrant certificate for the Warrants in a form satisfactory to both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Option Agreement.** The Buyer shall have executed and delivered to the Seller an option agreement for the grant of 500,000 stock options pursuant to the Hubbard Independent Contractor Agreement in a form satisfactory to both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Other**. The Seller shall have received such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to the Seller, as may be required to give effect to this Agreement.

**Article 5**

**POST-CLOSING COVENANTS**

5.1 <u>Access to Purchased Assets</u>. Notwithstanding that the Seller may continue to have access to the Private Keys following Closing, the Seller covenants not to access or otherwise make any modifications, changes, or take any other actions with respect to the Private Keys after Closing unless explicitly instructed to by the Buyer.

5.2 <u>Limited License</u>**.** Following Closing, the Buyer hereby grants to the Seller a limited, worldwide, royalty-free, non-sublicensable, non-transferable, license to use: (i) the trademarks ***[Redacted - Commercially Sensitive Confidential Information]*** ; and (ii) use ***[Redacted - Commercially Sensitive Confidential Information]*** solely in connection with the fulfilment and completion of contracts with third parties existing as at the date hereof. The Seller acknowledges that the limited license contained herein does not allow the Seller to advertise or publicly display the ***[Redacted - Commercially Sensitive Confidential Information]*** or otherwise promote any new business it may enter into or be involved in. The Seller acknowledges that all goodwill associated with the use of ***[Redacted - Commercially Sensitive Confidential Information]*** accrues to the benefit of the Buyer and further acknowledges that the use of the mark will be under the control of the Buyer. The limited license contained herein shall terminate upon the payment of the Remaining Share Consideration as set forth in Section 3.2(c) herein.

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5.3 <u>Post-Closing Consents</u>. It is acknowledged and agreed by the parties that the consents for assignment for the following Server Agreements and Assumed Contracts cannot be delivered on the Closing Date and the Seller covenants and agrees to use its commercially reasonable efforts to deliver such consents (or authorizations necessary for the assignment or transfer of such licenses, accounts, rights and authorities) to the Buyer within sixty (60) days following Closing:

***[Redacted - Commercially Sensitive Confidential Information]***

Notwithstanding the foregoing, to the extent consents cannot be received for the aforementioned Server Agreements and Assumed Contracts, the Buyer and the Seller shall cooperate and use commercially reasonable efforts to establish an arrangement under which the Buyer would obtain the claims, rights and benefits and assume the corresponding Liabilities under such Server Agreements and Assumed Contracts (including by means of any subcontracting, sublicensing or subleasing arrangement; or by virtue of the Buyer creating a new account for such Servers or Assumed Contracts).

**Article 6**

**REPRESENTATIONS AND WARRANTIES OF THE SELLER**

The Seller hereby represents and warrants to the Buyer as follows:

6.1 <u>Authority and Enforceability</u>. The Seller is an individual ordinarily resident in the country of New Zealand and has the requisite capacity, power and authority (a) to own the Purchased Assets, (b) to execute and deliver this Agreement, (c) to sell, assign, transfer, convey and deliver the Purchased Assets to the Buyer as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

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6.2 <u>Accredited Investor</u>. The Seller is an "accredited investor" within the meaning of National Instrument 45-106 - *Prospectus Exemptions* or the terms of this Agreement with respect to the issuance of the Share Consideration and Warrant Consideration to the Seller are in material compliance with the disclosure requirements applicable to such issuance under the securities laws of New Zealand or the issuance is exempt from such requirements, and in any case the transactions contemplated by this Agreement will not result in any requirement for the Seller or the Buyer to file any documents with, or provide notice of this Agreement to, any securities or other regulator in New Zealand*.*

6.3 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Seller and constitutes a valid and legally binding agreement of the Seller enforceable against the Seller in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

6.4 <u>Title</u>. The Seller is the absolute and unconditional owner of, and has good, valid and marketable title to, the Purchased Assets free and clear of all mortgages, liens, charges, security interests, pledges, adverse claims, conditional sale or other title retention agreements, restrictions, demands, equities, encumbrances and rights (each, an "**Encumbrance**") of any person, firm, entity, corporation or governmental authority (a "**Person**") of every nature, kind and description whatsoever including without limitation, rights of any Person (other than the Buyer hereunder) to acquire any ownership interest in or right to possess or use any of the Purchased Assets, and the Seller has the exclusive right and full power and authority to sell, assign, transfer, convey and deliver good and marketable title to such assets to the Buyer as herein contemplated. On Closing, the Buyer shall receive good and marketable title to the Purchased Assets free and clear of all Encumbrances.

6.5 <u>Sufficiency of Purchased Assets</u>. Except for the Excluded Assets, the Purchased Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, which are owned and used by the Seller to operate the Business as currently conducted in the ordinary course.

6.6 <u>Litigation</u>. There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Seller) pending or, to the knowledge of the Seller, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, relating to or affecting the Purchased Assets including, without limitation, which would restrain or otherwise prevent, in any manner, the Seller from effectually and legally transferring good and marketable title to the Purchased Assets to the Buyer hereunder, or which would cause any Encumbrance to attach to such property or assets or divest title to such property or assets from the Seller hereunder. The Seller is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. Notwithstanding the foregoing, the Seller is aware and has disclosed to the Buyer that (a) the U.S. Securities and Exchange Commission has sent Wells Notices to certain companies taking the position that the Solana token (SOL) is a security, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives. There are no outstanding and unsatisfied judgments, decrees or other judicial order binding upon or enforceable against the Seller which affect the Purchased Assets or the performance of this Agreement and would have a material adverse effect on the Seller.

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6.7 <u>Consents</u>. No governmental, regulatory or material third party authorizations, consents, approvals or notices are required to be obtained or given or waiting period is required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Seller.

6.8 <u>Absence of Conflicting Agreements.</u> To the knowledge of the Seller, neither the execution and delivery of this Agreement or any Transfer Document to which it is a party or the completion of the transactions contemplated herein nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Seller or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in any material breach of or default under any contract, agreement, indenture, trust or other instrument which is either binding upon or enforceable against the Seller or the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) violate any legally protected right of any Person or give to any Person a right or claim against the Buyer or the Purchased Assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in the creation of or imposition of any Encumbrance upon all or any part of the Purchased Assets.

6.9 <u>Employees and Contractors</u>. There are no:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) individuals currently employed whether on a full-time or part-time basis, active or inactive, in connection with the Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) individuals or entities who are otherwise engaged to provide consulting, development, sales, agency, representation or other services for the Business.

6.10 <u>Intellectual Property Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Intellectual Property**" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (a) issued patents and patent applications (whether provisional or non-provisional), including design patents, industrial design applications and registrations, divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other governmental authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility models) ("**Patents**"), (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing ("**Trademarks**"), (c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the foregoing ("**Copyrights**"), (d) internet domain names and social media account or user names (including "handles"), whether or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data thereon or relating thereto, whether or not Copyrights, (e) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technical information, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary information and all rights therein ("**Trade Secrets**"), (f) computer programs, operating systems, applications, firmware, and other code, including all source code, object code, screens, user interfaces, report formats, templates, menus, buttons and icons, application programming interfaces, data files, databases, protocols, specifications, and all files, data, materials, manuals, design notes and other items and other documentation related thereto or associated therewith ("**Software**"), (g) rights of publicity, and (h) all other intellectual or industrial property and proprietary rights.

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"**Business Intellectual Property**" means all Intellectual Property used or held for use by the Seller in the conduct of the Business (other than with respect to the Excluded Assets).

"**Seller Intellectual Property**" means all Intellectual Property owned or purported to be owned by the Seller and which is used by the Seller in the conduct of the Business (other than with respect to the Excluded Assets), except for any open source materials incorporated therein, all of which are subject to the applicable licenses related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exhibit B</u> contains a list of the Seller Intellectual Property, including: (i) all applied- for or registered Seller Intellectual Property, specifying as to each, as applicable: the title, mark, or design; the record owner and inventor(s), if any; the jurisdiction by or in which it has been issued, registered, or filed; the patent, registration, or application serial number; the issue, registration, or filing date; and the current status, (ii) all unregistered Trademarks included in the Seller Intellectual Property, and (iii) all proprietary Software included in the Seller Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Seller Intellectual Property is subject to any outstanding order restricting the use or licensing thereof by the Seller. The Seller has not received any claim challenging the validity, use, ownership, enforceability, or effectiveness of any of the Business Intellectual Property and, to the Seller's knowledge, no such claim has been threatened. The Seller does not have any current or future obligation to pay any royalty, license fee, honoraria or other similar consideration to any Person or to obtain any approval or consent for use of any of the Seller Intellectual Property. Each item of the Seller Intellectual Property included in the Purchased Assets will be owned by the Buyer immediately subsequent to the Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Seller has not entered into any agreements: (i) under which the Seller is a licensor or otherwise grants to any Person any right or interest relating to any Seller Intellectual Property; (ii) under which the Seller is a licensee or otherwise granted any right or interest relating to the Intellectual Property of any Person that is material to the conduct of the Business, other than with respect to the Excluded Assets; and (iii) which otherwise relate to the Seller's ownership or use of any Seller Intellectual Property, none of the foregoing (i)-(iii) including off-the-shelf software agreements or any open source materials and applicable licenses related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Seller owns all right, title and interest in and to all the Seller Intellectual Property, free and clear of any Encumbrance, and has the right to use and exploit such Seller Intellectual Property without payment to any other Person. The Seller is not bound by, and none of the Seller Intellectual Property is subject to, any agreement that in any way limits or restricts the Seller's ability to use, exploit, assert or enforce the Seller Intellectual Property anywhere in the world. To the knowledge of the Seller, the Seller is using all Business Intellectual Property owned by third parties with the consent of or license from the rightful owner thereof. To the knowledge of the Seller, all such licenses included in the Business Intellectual Property are in full force and effect, and not subject to any Encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Seller Intellectual Property is sufficient and complete to enable the Seller to carry on the Business in the manner currently operated. To the knowledge of the Seller, there are no issues affecting the Seller's ability to continue to develop, maintain, support and exploit the Business Intellectual Property that would have a material impact on the Business as currently conducted. As between the parties, the Seller Intellectual Property is fully transferable, alienable, licensable and otherwise distributable by the Seller without restriction and without payment to any Person or governmental authority. The Seller has not sold, transferred, assigned or otherwise disposed of any rights or interests in or to the Seller Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result in the loss or impairment of, or require the consent of any other Person in respect of, the Seller's right to own or use any Seller Intellectual Property, or the Seller's right to use any Business Intellectual Property in the conduct of the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the knowledge of the Seller, there is no claim that any Seller Intellectual Property, including the design, development, use, import, export, manufacture, licensing, sale or other disposition of the Seller Intellectual Property and the exploitation of the functionality of the Seller Intellectual Property in the conduct of the Business, infringes, misappropriates or interferes with the Intellectual Property rights of any Person, or violate the rights of any Person (including rights to privacy or publicity) and the Seller is not aware of any circumstances which would give rise to such a claim. The Seller has not at any time (i) received any written notice from any Person claiming that the Business Intellectual Property (including any rights thereof), infringes, misappropriates or interferes with the Intellectual Property (including any rights thereof) of any Person, violate the rights of any Person (including rights to privacy or publicity) or constitute unfair competition or trade practices under the applicable laws of any jurisdiction (nor does there exist any basis therefor) or (ii) received any offer for a license of Intellectual Property rights implying that the Business Intellectual Property infringes or misappropriates the Intellectual Property rights of a third party or violates the rights of any Person (including rights to privacy or publicity).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the knowledge of the Seller, no Person has infringed, misappropriated or otherwise violated, or is currently infringing, misappropriating, or otherwise violating, any Seller Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All Seller Intellectual Property was created solely by past and present employees, independent contractors and consultants of the Seller that were bound by written agreements pursuant to which such Persons: (i) agreed and were bound to maintain and protect the confidential information of the Seller; (ii) acknowledge the Seller's exclusive ownership of all Intellectual Property invented, created or developed by such employee, independent contractor or consultant within the scope of their employment or engagement with the Seller; (iii) grant to the Seller a valid and irrevocable assignment of any ownership interest such employee, independent contractor or consultant may have in or to such Intellectual Property; and (iv) validly and irrevocably waive, their moral rights therein in favour of the Seller and its successors and assigns. No such Person has expressly excluded works or inventions that are used in the Business from any such assignment. To the knowledge of the Seller, no such Person is in violation of any such assignment or confidential information agreement. However, Seller does not represent that he created or was in any way involved in the creation of the cryptographic platforms on which the Solana Validator, the SUI Validator or the Monad Validator operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Business Intellectual Property materially performs in accordance with the specifications and user documentation provided to the Buyer and contains all current revisions.

6.11 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no Encumbrances for taxes upon the Purchased Assets. The Seller has paid or has made arrangements for the payment of all taxes which have accrued or are due on or before the Closing Date and which would result in an Encumbrance on the Purchased Assets. The Seller has filed all income and other material tax returns required to be filed by it with the appropriate taxing authority, and such tax returns were complete and correct in all material respects. The Seller has paid all income and other material taxes relating to the Business which are due and payable by it. The Purchased Assets were not used in, or held by the Seller in respect of, a business carried on in Canada.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Seller is not registered for any Canadian Transfer Taxes.

6.12 <u>Non-Residency Status.</u> The Seller is a non-resident of Canada for the purposes of the *Income Tax Act* (Canada). The Purchased Assets are not "taxable Canada property" for purposes of the *Income Tax Act* (Canada).

6.13 <u>Compliance with Laws</u>. The Business has been operated and is currently operating in material compliance with all applicable laws and regulations as they currently are applied. The Seller has disclosed to the Buyer that (a) the U.S. Securities and Exchange Commission may take the position that the Solana token (SOL) is a security which may affect the Business, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives, each of which taken separately or together may affect the Business.

6.14 <u>No Broker or Finder</u>. The Seller has not retained, employed or used any broker or finder in connection with the transaction provided for herein.

6.15 <u>Licences</u>. To the knowledge of the Seller, no governmental licences are necessary to operate the Business.

6.16 <u>No Other Representations and Warranties</u>. Except for the representations and warranties contained in this Article 6, neither the Seller nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Seller, including any representation or warranty as to the accuracy or completeness of any information regarding the Business, the Purchased Assets and the Assumed Liabilities furnished or made available to the Buyer (including any information, documents or material delivered to the Buyer, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the Business or the Purchased Assets, or any representation or warranty arising from statute or otherwise in law.

**Article 7**

**REPRESENTATIONS AND WARRANTIES OF THE BUYER**

The Buyer hereby represents and warrants to the Seller as follows:

7.1 <u>Duly Incorporated</u>. The Buyer is a corporation duly incorporated and organized in its jurisdiction of incorporation and is a validly subsisting corporation in good standing in its jurisdiction of incorporation with full corporate capacity, power and authority (a) to purchase and own the Purchased Assets, (b) to execute and deliver this Agreement, (c) to issue the Common Shares comprising the Share Consideration to the Seller as herein contemplated, (d) to issue the Warrants and the Common Shares underlying the Warrants to the Seller as herein contemplated, and (d) to otherwise observe, perform, satisfy and carry out its obligations hereunder.

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7.2 <u>Capitalization</u>. The authorized share capital of the Buyer consists of an unlimited number of Common Shares, of which 153,153,866 Common Shares are issued and outstanding as of March 5, 2025. As of the date of this Agreement, the Buyer has 10,357,066 stock options, 1,113,669 restricted share units and 11,535,000 common share purchase warrants outstanding. Each stock option, restricted share unit and common share purchase warrant is exercisable for or vests into one Common Share.

7.3 <u>Corporate Action</u>. All necessary corporate action has been taken by the Buyer so as to validly create, authorize and issue the Common Shares comprising the Share Consideration and the Common Shares underlying the Warrants as fully paid and non-assessable securities in the capital of the Buyer. Upon Closing, (a) the Closing Share Consideration will be validly issued and outstanding as fully paid and non-assessable Common Shares and upon the first anniversary of Closing, (b) the Remaining Share Consideration being issued in accordance with Section 3.2(c) will be validly issued and outstanding as fully paid and non-assessable Common Shares, (c) upon exercise of the Warrants, the Common Shares underlying those Warrants will be validly issued and outstanding as fully paid and non-assessable Common Shares. All necessary steps and proceedings have been, or prior to the issuance of the Common Shares comprising the Share Consideration, will have been taken to permit the Share Consideration to be duly and regularly issued and registered in the name of the Seller (or an affiliate of the Seller) as fully paid and non- assessable.

7.4 <u>Reporting Issuer</u>. The Buyer is a "reporting issuer" in good standing under Applicable Securities Laws in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, is not on the list of defaulting issuers as maintained by the applicable securities regulatory authority for a default of any requirement of Applicable Securities Laws, and neither the CSE nor any other regulatory authority having jurisdiction over the Buyer has issued any order preventing or suspending trading of any securities of the Buyer. The Buyer is also in compliance in all material respects with all Applicable Securities Laws.

7.5 <u>Listing of Common Shares</u>. As at the date hereof, the Common Shares are listed and posted for trading on the CSE and the OTC Markets, no order ceasing or suspending trading in any securities of the Buyer or prohibiting the issue, sale and delivery (as applicable) of Common Shares or trading of any of the Buyer's securities has been issued and is in effect and no proceedings for such purpose are pending or, to the Buyer's knowledge, threatened. The Buyer has not taken any action which would be reasonably expected to result in the delisting or suspension of the Common Shares on or from the CSE and the Buyer is in material compliance with the rules and regulations of the CSE.

7.6 <u>No Conflict with Constating Documents</u>. The execution and delivery of, and the performance of the terms of this Agreement by the Buyer, including the issue of the Common Shares comprising the Share Consideration, the issue of the Warrants comprising the Warrant Consideration, and the execution and delivery of, and the performance of the terms of all other agreements, documents and instruments to be executed and delivered by the Buyer pursuant hereto or in connection with the completion of the transactions contemplated herein, (a) does not and will not constitute a breach of or default under or conflict with or violate any provision of its constating documents and by-laws, and (b) have been duly authorized and approved by all necessary and appropriate action of the board of directors and by any other necessary action on the part of the Buyer to comply with applicable law, including Applicable Securities Laws.

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7.7 <u>Binding Effect</u>. This Agreement has been duly and validly executed and delivered by the Buyer and constitutes a valid and legally binding agreement of the Buyer enforceable against it in accordance with the terms hereof, subject to the qualification that enforceability may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors' rights generally and that equitable remedies, including the remedies of specific enforcement and injunction, may only be granted in the discretion of a court of competent jurisdiction from which such remedies are sought.

7.8 <u>Consents</u>. No governmental or regulatory authorizations, consents, approvals or notices are required to be obtained or given nor is any waiting period required to expire in order that the purchase and sale of the Purchased Assets may be consummated by the Buyer, other than the conditional approval of the CSE referred to in Section 4.2(c) and 4.3(d), and except for the filing by the Buyer, within the prescribed time periods, of a report of the issuance of the Share Consideration in connection with such sale with the applicable securities commissions, together with the applicable fees, if required.

7.9 <u>Absence of Conflicting Agreements.</u> Neither the execution and delivery of this Agreement nor the consummation of the transaction contemplated hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conflict with or violate any provision of any law, ordinance or regulation or any decree, judgment or order of any court or administrative or other governmental body which is either applicable to, binding upon or enforceable against the Buyer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in any breach of or default under any contract, agreement, indenture, trust or other instrument which is either binding upon or enforceable against the Buyer.

7.10 <u>No Brokers or Finders</u>. Neither the Buyer nor any of its directors, officers, employees, shareholders or agents has retained, employed or used any broker or finder in connection with the transaction provided for herein.

7.11 <u>Legal Proceedings</u>. There are no claims, suits, actions or any other proceedings of any nature, kind or description whatsoever (including arbitration proceedings), or investigations (whether or not purportedly on behalf of the Buyer) pending or, to the knowledge of the Buyer, threatened, at law or in equity, or before or by any federal, provincial, municipal or other governmental department, commission, bureau, agency or instrumentality, domestic or foreign, against or by the Buyer or any affiliate of the Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement, and the Buyer is not aware of any existing ground on which any such claim, suit, action, proceeding or investigation might be commenced with any reasonable likelihood of success. There are no outstanding and unsatisfied judgements, decrees or other judicial order binding upon or enforceable against the Buyer which may affect the performance of this Agreement.

7.12 <u>Solvency</u>. Immediately after giving effect to the transactions contemplated hereby, the Buyer shall be solvent and shall: (a) be able to pay its debts as they become due; (b) own assets that have a realizable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent liabilities); and (c) have adequate capital to carry on its business. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated hereby with the intent to hinder, delay or defraud either present or future creditors of the Buyer or the Seller. In connection with the transactions contemplated hereby, the Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

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7.13 <u>Compliance with Laws</u>. The business of the Buyer has been operated and is currently operating in material compliance with all applicable laws and regulations as they are currently applied. The Seller understands that (a) the U.S. Securities and Exchange Commission may take the position that the Solana token (SOL) is a security which may affect the Business, and (b) the Canadian Securities Administrators and Canada's provincial securities commissions, (i) may take the position that the Solana token (SOL) is a security, and (ii) have taken the position that staking or staking-related activities may, in certain circumstances, involve the issuance of securities or derivatives, each of which taken separately or together may affect the Business.

7.14 <u>Public Filings</u>. The Buyer has filed all documents and information required to be filed by it under Applicable Securities Laws. All of the Public Disclosure Documents, as of their respective dates of filing, and as of the date of any amendments thereto, complied as to both form and content in all material respects with the requirements of Applicable Securities Laws. The Buyer has not filed any confidential material change reports with any securities regulatory authority that remains confidential. For purposes of this Section 7.14, "**Public Disclosure Documents**" means, collectively, all of the documents that have been filed by or on behalf of the Buyer prior to the date hereof since October 1, 2023 with the relevant securities regulatory authorities pursuant to the requirements of Applicable Securities Laws, including all documents filed under the Buyer's issuer profile on the System for Electronic Document Analysis and Retrieval (SEDAR+).

7.15 <u>Financial Statements</u>. The Buyer Financial Statements were prepared in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board, consistently applied in accordance with past practice and no material adverse effect has occurred since October 1, 2023. The Buyer Financial Statements fairly present (i) the consolidated financial condition of the Buyer as at the respective dates thereof, and (ii) the consolidated results of operations, cash flow and income of the Buyer during the respective fiscal periods covered thereby. Other than as disclosed in the Buyer Financial Statements (including any notes thereto), there are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations) or other relationships of the Buyer with unconsolidated entities or other Persons that have or could reasonably be expected to have a material adverse effect. For purposes of this Section 7.15, "**Buyer Financial Statements**" means the audited consolidated financial statements of the Buyer for the financial years ended September 30, 2024 and 2023.

7.16 <u>Independent Investigation</u>. The Buyer has conducted its own independent investigation, review and analysis of the Business and the Purchased Assets, and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents and data of the Seller for such purpose. The Buyer acknowledges and agrees that in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, the Buyer has relied solely upon its own investigation and the express representations and warranties of the Seller set forth in Article 6 of this Agreement.

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7.17 <u>No Other Representations and Warranties</u>. Except for the representations and warranties contained in this Article 7, neither the Buyer nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Buyer.

**Article 8**

**COVENANTS**

8.1 <u>Conduct of Business before Closing.</u> From the date hereof until the Closing Date, except as otherwise provided in this Agreement or consented to in writing by the Buyer, the Seller shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conduct the Business in the ordinary course of business consistent with past practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to maintain, preserve and protect the Purchased Assets and Business, including its income, goodwill and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) maintain the Purchased Assets owned, operated or used by the Seller in the same condition as they were on the date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) comply in all material respects with all applicable laws.

8.2 <u>Trade Names and Dissolution</u>. From Closing, the Seller shall discontinue further use of the name "Stakewiz" and the associated logo, except where legally required to identify the Seller until its name has been changed to another name.

8.3 <u>Confidentiality</u>. Neither the Seller nor any corporation controlled by or under common control with the Seller shall (a) use for any purpose, (b) disclose to any Person except the Buyer, or (c) keep or make copies of documents, tapes, discs or programs containing, any confidential information relating exclusively to the Purchased Assets. For purposes hereof, "confidential information" shall mean and include, without limitation, the Purchased Assets described in subsection 1.1 above, and all other information concerning the processes, apparatus, equipment, products, purchasing, marketing and distribution methods used by the Seller exclusively in operating the Purchased Assets which is not publicly known. Notwithstanding the foregoing, "confidential information" does not include, and there shall be no obligation hereunder with respect to, (i) information that is or becomes generally known or available to the public other than as a result of a disclosure by the Seller in violation of this Section 8.3, (ii) information that becomes available to the Seller on a non-confidential basis and without breach of any duty or obligation of confidentiality from a third-party source other than the Buyer, or (iii) information that was independently developed following the Closing by the Seller without use of or reference to any such confidential information. The Seller is authorized to retain copies of documents needed for product liability and tax purposes and other records needed to assist the Buyer in using the Purchased Assets.

8.4 <u>Employees</u>. The Seller shall be responsible for all wages, bonuses, vacations, sick leave, vacation pay and severance pay and other remuneration benefits, earned or accrue and all other liabilities (collectively "**Wages**") related to all of its employees/contractors or former employees/contractors, and the Buyer shall not have any obligation whatsoever for Wages, or similar payment to the employees/contractors or former employees/contractors, prior to and after the Closing Date, whether or not paid or payable before or after Closing.

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8.5 <u>Access</u>. Subject to obtaining the required consents as contemplated by this Agreement, the Seller shall use commercially reasonable efforts to provide the Buyer with all information reasonably required for the Buyer to have unrestricted access to the accounts associated with the Purchased Assets, including, but not limited to the username and password to each such account associated with such Purchased Assets.

8.6 <u>Consents and Waivers</u>. The Seller shall, at its own expense, use all commercially reasonable efforts to obtain, prior to the Closing, all consents or waivers of third parties required to consummate the transactions contemplated by this Agreement.

8.7 <u>Equitable Relief for Violations</u>. The Seller agrees that the provisions and restrictions contained in this Article 8 are necessary to protect the legitimate continuing interests of the Buyer as a result of its acquisition of the Business, and that any violation or breach of these provisions may result in irreparable injury to the Buyer for which a remedy at law would be inadequate and that, in addition to any relief at law which may be available to the Buyer for such violation or breach, and regardless of any other provision contained in this Agreement, the Buyer shall be entitled to seek such injunctive and other equitable relief as a court may grant after considering the intent of this Agreement.

8.8 <u>Public Announcements</u>. Unless otherwise required by applicable law or stock exchange requirements (including Applicable Securities Laws), prior to Closing, the Buyer and the Seller shall not make, and shall use reasonable efforts to prohibit their other affiliates from making, any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the Buyer and the Seller (which consent shall not be unreasonably withheld or delayed by any party). Prior to Closing, the Buyer shall consult with the Seller prior to issuing any press releases or otherwise making public statements with respect to this Agreement or the transactions contemplated by this Agreement that may be required by Applicable Securities Laws or stock exchange rules, and shall provide the Seller with a reasonable period of time to review and comment on all such press releases or statements prior to the release thereof. To the extent that any such press release or public statement is required by applicable laws or by a governmental authority, the press release or public announcement shall be issued or made after consultation with the other party and after taking into account the other party's comments. If such advance consultation is not reasonably practicable or legally permitted, to the extent permitted by applicable law, the disclosing party shall provide the other party with a copy of any written disclosure made by such disclosing party as soon as practicable thereafter. Notwithstanding the foregoing, the Buyer and the Seller acknowledge and agree that the Buyer shall issue a press release, in a form that has been mutually agreed with the Seller, and post notice of the proposed transaction with the CSE.

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**Article 9**

**TERMINATION**

9.1 <u>Termination</u>. This Agreement may be terminated on or prior to the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by the mutual written agreement of the parties hereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either party upon written notice to the other party if Closing has not occurred on or before the Outside Date, provided that the terminating party is not in breach of any representation, warranty, or covenant in this Agreement that would prevent the satisfaction of the conditions in Article 4 on or before the Outside Date.

9.2 <u>Effect of Termination and Survival</u>. If this Agreement is terminated pursuant to Section 9.1, this Agreement shall become null and void and of no further force or effect without liability of either party to the other party to this Agreement, except that Article 9, Article 10, and Article 11 shall survive.

**Article 10**

**INDEMNIFICATION**

10.1 <u>By the Seller</u>. Subject to the other terms and conditions of this Article 9, the Seller hereby agrees to indemnify and defend the Buyer, and its directors, officers, employees and controlled and controlling persons (hereinafter the "**Buyer's Affiliates**"), and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all (i) Liabilities; (ii) losses, damages, judgments, awards, settlements, costs and expenses; and (iii) all demands, claims, suits, actions, costs of investigation, causes of action, proceedings and assessments, whether or not ultimately determined to be valid (collectively, a "**Loss**") incurred or sustained by, or imposed upon, the Buyer's Affiliates based upon, arising out of, with respect to or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of the Seller set forth in Article 6 this Agreement or in any certificate delivered by or on behalf of the Seller pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Seller pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of the Seller's conduct of the Excluded Liabilities and Excluded Assets following the Closing

10.2 <u>By the Buyer</u>. Subject to the other terms and conditions of this Article 9, Buyer shall indemnify and defend each of the Seller and its managers, officers, employees, affiliates, controlled and controlling persons and their respective representatives (collectively, the "**Seller Indemnitees**") against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of the Buyer set forth in Article 7 of this Agreement or in any certificate delivered by or on behalf of the Buyer pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Buyer pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any third party claim based upon, resulting from or arising out of the Buyer's conduct of the Purchased Assets and the Assumed Liabilities following the Closing.

10.3 <u>Indemnification Procedures</u>. The obligations of either party to indemnify the other under this Article 9 shall be subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice and Defence.** The party or parties to be indemnified (the "**Indemnified Party**") will give the party from which indemnification is sought (the "**Indemnifying Party**") prompt written notice of any claim, proceeding or other matter (as used in this Article 9, a "**Claim**"), and the Indemnifying Party will undertake the defence by representatives chosen by the Indemnifying Party. Failure to give prompt notice will only affect the Indemnifying Party's duty to the extent the Indemnifying Party is materially prejudiced. So long as the Indemnifying Party is defending the Claim actively and in good faith, the Indemnified Party shall not settle such Claim. The Indemnified Party shall make available all materials reasonably required by the Indemnifying Party or its representatives in defending such Claim, and the Indemnified Party shall give reasonable cooperation in such defence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Failure to Defend**. If the Indemnifying Party fails to defend a Claim actively and in good faith in a reasonable time after receiving notice or if the Indemnifying Party requests the Indemnified Party to undertake a defence of the Claim, the Indemnified Party will (upon further notice) have the right to undertake the defence or settlement of the Claim or consent to the entry of a judgment with respect to the Claim, and the Indemnifying Party shall thereafter have no right to challenge the Indemnified Party's action under this paragraph.

10.4 <u>Payment</u>. The Indemnifying Party shall promptly pay the Indemnified Party any amount due under this Article 9, which payment may be accomplished in whole or in part, at the Indemnified Party's option, by the Indemnified Party setting off any amount owed to the Indemnifying Party by the Indemnified Party; provided, that for the avoidance of doubt, the Indemnified Party's right to set off Losses hereunder shall be subject to the other provisions of this Article 8.

10.5 <u>Limitations on Indemnification</u>. Notwithstanding anything else in this Agreement to the contrary, neither party shall have any liability (for indemnification or otherwise) until the total of all losses, damages, liabilities, costs and expenses resulting from Claims by an Indemnified Party exceeds $10,000 (the "**Deductible**"), after which, the Indemnifying Party shall be obligated to pay the full amount for any such Losses in excess of the Deductible. Notwithstanding the foregoing, (a) the maximum aggregate amount of liability that one party shall have to the other party shall not exceed the Purchase Price actually paid or received hereunder, and (b) in no event shall either party be liable for any punitive, incidental, consequential, special, or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, The amount of any Loss subject to indemnification under this Article 9 shall be calculated net of any amounts actually recovered under insurance policies applicable to such Loss. If any Indemnified Party receives any insurance or other proceeds from third parties for a Loss, after receiving an indemnification payment from an Indemnifying Party for the related Loss, the Indemnified Party shall pay to the Indemnifying Party the amount of such proceeds.

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10.6 <u>Exclusive Remedy</u>. Other than in the case of fraud, the sole recourse and exclusive remedy of any party for any matters arising out of this Agreement and the Transfer Documents or any certificate or instrument delivered pursuant to this Agreement shall be to assert a Claim for indemnification under the provisions of this Article 9. In furtherance of the foregoing, each of the parties hereby waives, from and after the Closing Date, to the fullest extent permitted under applicable law, and any all rights and claims for Losses it may have against any other party arising under, based upon or relating to this Agreement, any applicable law, common law or otherwise (except pursuant to the indemnification provisions set forth in this Article 9). The provisions of this Section 9.6 shall not, however, limit (a) any party's right to seek and obtain specific performance and equitable remedies with respect to Section 8.7, or (b) any claims based on fraud.

**Article 11**

**MISCELLANEOUS**

11.1 <u>Survival of Representations and Warranties</u>. Subject to any limitation periods set out under applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all representations and warranties made by any party in this Agreement or in any Transfer Document, agreement or instrument shall survive the Closing and continue for a period of eighteen (18) months from the Closing Date; provided, that the representations and warranties set forth in Sections 6.1, 6.4, 7.1, 7.2, 7.3, 7.6 and 7.10 shall survive the Closing and continue for a period of three (3) years from the Closing Date. After such period, no party shall have further liability hereunder with respect to the relevant representations and warranties except with respect to claims properly made within such period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all covenants and agreements made by any party in this Agreement or in any Transfer Document shall survive the Closing and continue without time limit.

11.2 <u>Assignment; Parties in Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Assignment**. Neither party is permitted to assign its respective rights and obligations hereunder without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Parties in Interest**. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto but all obligations shall be guaranteed by the parties hereto. Nothing contained herein shall be deemed to confer upon any other person any right or remedy under or by reason of this Agreement.

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11.3 <u>Governing Law: Jurisdiction</u>. This Agreement shall be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the parties shall be governed by, the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each party to this Agreement irrevocably attorns and submits to the exclusive jurisdiction of the Courts of the City of Toronto with respect to any matter arising under or relating to this Agreement and waives any objections to the assertion or exercise of jurisdiction by such courts, including any objection based on *forum non conveniens*.

11.4 <u>Amendment and Modification</u>. This Agreement may be amended, modified or supplemented only by written agreement of the Buyer and the Seller.

11.5 <u>Time of the Essence</u>. Time is of the essence of each provision of this Agreement.

11.6 <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

11.7 <u>Entire Agreement</u>. This Agreement (together with any Transfer Documents) embodies the entire agreement between the parties hereto with respect to the transaction contemplated herein, superseding all prior agreements, understandings, negotiations and correspondence between them on the subject hereof including, for greater certainty, the term sheet entered into between the Buyer and the Seller, dated February 15, 2025, and there are no conditions to this Agreement which are not set forth herein.

11.8 <u>Notices</u>. All notices, consents, requests, reports, demands or other communications hereunder (collectively, "**Notices**") shall be in writing and may be given personally, by registered or certified mail or email transmission,

if to the Buyer, addressed to it at:

Sol Strategies Inc.

217 Queen St W #401

Toronto, ON M5V 0R2

Attention: Leah Wald

***E-mail: [Redacted - Contact Information]***

with a copy to:

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Fasken Martineau DuMoulin LLP

333 Bay Street, Suite 2400

Bay Adelaide Centre, Box 20

Toronto, ON M5H 2T6

Attention: Daniel Fuke

E-mail: dfuke@fasken.com

if to the Seller, addressed to:

Michael Hubbard

***[Redacted - private Information]***

Attention: Michael Hubbard

***Email: [Redacted - Contact Information]***

with a copy to:

Lane Neave

Vero Centre

Level 8, 48 Shortland Street, Auckland 1010

PO Box 462, Auckland 1140

Attention: Andrew Comer

E-mail: andrew.comer@laneneave.co.nz

or to such other address or to such other person as the addressee party shall have last designated by notice to the other party. Notices given by registered or certified mail shall be deemed to have been given three (3) days after being deposited in the mails with postage prepaid. All other notices shall be deemed to have been given when received.

Each of the Buyer and the Seller agree to promptly notify the other party of any change in its electronic mail address, and that failure to do so shall not affect the foregoing.

11.9 <u>Counterparts</u>. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.

11.10 <u>Electronic Execution</u>. To evidence the fact that it has executed this Agreement, a party may send a copy of its executed counterpart to the other party by facsimile transmission or via e- mail in PDF format. That party shall be deemed to have executed this Agreement on the date it sent such facsimile transmission or e-mail. In such event, such party shall forthwith deliver to the other party the counterpart of this Agreement executed by such party.

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11.11 <u>Expenses</u>. Each party to this Agreement will pay all costs and expenses attributable to the performance of and compliance with all agreements and conditions contained in this Agreement to be performed or complied with by such party.

11.12 <u>Headings</u>. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

***[Signature page follows]***

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| *By:* | *(signed) "Leah Wald"* |
|  | Name: Leah Wald |
|  | Title: Chief Executive Officer |
|  | **MICHAEL HUBBARD** |

---

****

<br> ***[Signature Page - Sol Strategies Inc. APA]***

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| *By:* |  |
|  | Name: Leah Wald |
|  | Title: Chief Executive Officer |
|  | *(signed) "Michael Hubbard"* |
|  | **MICHAEL HUBBARD** |

---

**<br>[Signature Page - Sol Strategies Inc. APA]**

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**EXHIBIT A**

**Servers**

***[Redacted - Commercially Sensitive Confidential Information]***

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**EXHIBIT B**

**Seller Intellectual Property**

***[Redacted - Commercially Sensitive Confidential Information]***

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***[Redacted - Commercially Sensitive Confidential Information]***

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## Exhibit 99.98

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**SOL Strategies Provides Monthly Operational Update: March 2025**

Toronto, Ontario--(Newsfile Corp. - April 7, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today released its March 2025 operational update.

**Management Commentary**

Leah Wald, CEO, stated, "March represented a significant month for SOL Strategies, marked by our strategic acquisition of Laine's validator network and Stakewiz.com, significantly expanding our validator footprint. This acquisition, which brings Michael Hubbard to our executive team as Chief Strategy Officer, combined with our continued operational excellence across all validators, reinforces our position as a leading institutional staking platform within the Solana ecosystem."

**Validator Performance Metrics**

Network Position & Growth

- Total SOL staked across all validators: 3,391,092 SOL, representing approximately CAD $552 million (USD $396 million)

- Total validators operated: 4 (including one validator added through the Laine Acquisition, as defined below).

*A validator is a specialized server node on the Solana blockchain that processes transactions, verifies blocks, and maintains network consensus. Validators enhance the network's security, performance, and decentralization. They earn revenue through commission fees on staking rewards generated by delegators who stake their SOL tokens to the validator. Operating validators is a core blockchain infrastructure activity that requires both technical expertise and capital investment.*

*The above Canadian dollar (CAD) amounts are based on prices and foreign exchange rates quoted by Coinbase (<u>https://www.coinbase.com/converter/sol/cad</u>) as of 5:00PM ET on April 3, 2025.*

Technical Performance and Developments

* Uptime: 99.955% across all validators

* Average APY Delivered to Delegators: 7.41%, outperforming the network average of 7.32%

* Firedancer Implementation: Currently being tested on two validators. Firedancer is a next-generation validator client designed to improve Solana's throughput, efficiency, and network resilience. Our active testing positions SOL Strategies at the forefront of infrastructure innovation while reinforcing our commitment to supporting scalable, institutional-grade performance.

* Restaking Integration: SOL Strategies is proud to be at the forefront of restaking innovation on Solana through active participation in Jito's TipRouter NCN, a notable advancement in MEV distribution.

*Source: <u>stakewiz.com</u> data sourced from stake account reward entries for all validators for epochs ending in March 2025, unweighted mean.*

*Market Note: While validator performance and yield remained strong, SOL's market price declined approximately 12.5% over the month of March. As a result, CAD-denominated returns for delegators were impacted by underlying token price volatility, despite steady protocol-level rewards.*

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**Corporate Development**

Laine Validator Acquisition (the "Laine Acquisition"): On March 17, 2025, SOL Strategies completed the acquisition of three Solana validators - including Laine's validator and Stakewiz.com - for CAD $35 million. Upon closing, this transaction increased the amount of SOL staked at the Company's validators to 3,351,617 SOL, representing a 102% increase from February.

Leadership Enhancement: Michael Hubbard, founder of Laine, joined SOL Strategies as Chief Strategy Officer to lead validator infrastructure expansion and institutional partnerships. His appointment brings additional technical depth to our validator operations team.

**Solana Purchases**

During March, the Company acquired 24,000 SOL at an average cost of approximately CAD $199 per token. On March 31, 2025, SOL Strategies held 267,151 SOL, of which 265,295 SOL were staked to the Company's validators.

**Media & Industry Engagement**

In March, SOL Strategies' CEO Leah Wald was featured across top-tier media platforms and high-impact industry events, further cementing the company's thought leadership within the digital asset space:

* **FOX Business** - Live interview discussing Solana's rise and institutional appetite for Sol exposure: <u>Watch here</u>

* **Bloomberg Television** - Featured segment on Sol Futures and SOL Strategies' positioning as a first-mover: <u>Watch here.</u>

* **Blockworks Digital Asset Summit -** Moderated the flagship panel *"Crypto M&A and IPOs"*, alongside leaders shaping the next wave of crypto dealmaking

* **The Tie's Innovate Summit** - Panelist on *"Beyond ETFs,"* exploring the future of asset structuring in the digital space

* **Lightspeed Podcast (Blockworks)** - In-depth conversation on Solana adoption and market infrastructure: <u>Watch here</u>

* **CEO.CA** - Featured guest sharing the SOL Strategies vision with Canada's most active investor community: <u>Watch here</u>

* **Canadian Securities Exchange (CSE)** issuer update interview: Taking a Stake in Solana's Potential. <u>Watch here</u>

**Solana Network Update**

March saw a significant governance vote on SIMD-228, proposing to reduce Solana's inflation rate from 4.5% to approximately 0.87%. While the proposal received 61.4% support (short of the required two-thirds threshold), SOL Strategies actively participated in the process, with our validators voting yes. Full details on the proposal and vote results are available here: <u>https://www.theblock.co/post/346280/solanas-key-simd-228-proposal-fails-to-pass-validator-vote-token-</u><u>emissions-unchanged</u>**.** Additionally, there was another governance vote on SIMD-123 which passed. This proposal will allow validators to share block rewards with their stakers.

Beyond governance, the broader Solana ecosystem continued to build momentum. **<u>Visa</u>** <u>and</u> **<u>Worldpay</u>** expanded their use of Solana for stablecoin settlement infrastructure, reinforcing institutional interest in Solana's high-speed, low-cost network.

Meanwhile, **Solana Mobile** began delivering pre-orders of its second smartphone, focused on Web3- native mobile experiences: <u>https://solanamobile.com</u>**.** Activity in NFTs and gaming also remained strong, with **Magic Eden** and **Tensor** maintaining their positions as leading marketplaces (<u>https://magiceden.io</u> and <u>https://www.tensor.trade</u>), and new content launches from **Aurory** (<u>https://aurory.io</u>) and **Star Atlas** (<u>https://staratlas.com</u>) continuing to drive user engagement. These developments reflect steady growth across both institutional and consumer-facing segments of the Solana ecosystem.

------

**Market Context**

Solana (SOL) experienced notable volatility in March, beginning the month around $144, with a monthly low of around $110, reaching a high of approximately $178, and closing just under $126, according to <u>CoinGecko</u>. From its monthly low to peak, SOL gained approximately 61.8%, while the decline from its high to month-end marked a pullback of around 29.2%. Overall, SOL ended March down roughly 12.5% from its opening price. These intra-month swings reflect a combination of renewed ecosystem interest-driven by developments in payments, mobile, DeFi, and governance-and broader market volatility.

*This update is intended for informational purposes only and does not constitute investment advice. SOL Strategies remains focused on long-term, value-driven participation within the Solana ecosystem and will continue to monitor market and protocol developments closely.*

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Investor Contact**

ICR

John Ragozzino Jr. CFA <br><u>solstrategies@icrinc.com</u> <br>Tel: 203-682-8284

**Cautionary Note Regarding Forward-Looking Information**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the Company's validator operations, anticipated growth following the Laine Acquisition, and the strategic direction of its infrastructure and investment activities within the Solana ecosystem. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

Disclaimer:

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-98x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/247578</u>

------

## Exhibit 99.99

------

**PRESS RELEASE**

**ANTANAS GUOGA ANNOUNCES FILING OF EARLY WARNING REPORT RELATED TO**

**SOL STRATEGIES INC.**

**FOR IMMEDIATE RELEASE**

**TORONTO - ON - April 11, 2025** - Antanas Guoga, Chair and director of Sol Strategies Inc. (formerly, Cypherpunk Holdings Inc., the "**Company**"), announces that he has filed an early warning report (the "**Report**") regarding the disposition by way of a gift of an aggregate of 5,000,000 common shares (the "**Common Shares**") in the capital of the Company to a third party and acquired an aggregate of 100,000 Common Shares through the facilities of the CSE (collectively, the "**Transaction**").

Prior to the completion of the Transaction, Mr. Guoga held an aggregate of 38,616,788 Common Shares and 135,500 stock options, representing approximately 24.39% of the issued and outstanding Common Shares on an undiluted basis and approximately 24,39%on a partially diluted basis. Upon completion of the Transaction, Mr. Guoga held an aggregate of 33,716,788 Common Shares and 135,500 stock options, representing approximately 21.24% of the then issued and outstanding Common Shares on an undiluted basis and approximately 21.31% on a partially diluted basis.

Mr. Guoga has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell the Common Shares on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

For further details relating to the acquisition, please see the Report, a copy of which is available under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>, or may be requested by mail at: Antanas Guoga c/o Sol Strategies Inc., 217 Queen Street West, Suite 401, Toronto, ON M5V 0R2, or by email at tonyguoga@icloud.com.

------

## Exhibit 99.100

------

**SOL Strategies Partners with Pudgy Penguins to Launch Enterprise PENGU Validator on Solana**

Toronto, Ontario--(Newsfile Corp. - April 15, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem. On February 26, 2025, Sol Strategies entered into a definitive agreement with Pudgy Penguins-one of the most recognized brands in crypto, known for its toy line available in over 10,000 retailers, billions of online views, and a highly engaged global community-to launch a dedicated Solana validator in support of the PENGU ecosystem. This partnership is a continuation of Pudgy Penguins expansion into the Solana ecosystem and demonstrates the brand's commitment to securing the network.

The PENGU validator is now operational, providing secure, high-performance validation infrastructure as part of SOL Strategies' white-label validator program. This validator program enables select partners to participate in Solana's blockchain security while leveraging its high-speed, low-cost network.

"Partnering with Pudgy Penguins reflects a strong alignment between blockchain infrastructure and consumer-facing innovation," said Leah Wald, CEO of SOL Strategies. "As a widely recognized Web3 brand expands its presence on Solana, it underscores the evolving role of blockchain in supporting mainstream engagement. Through this validator partnership, SOL Strategies is helping connect well-established brands to the underlying infrastructure of the digital economy."

Pudgy Penguins has built a distinctive presence at the intersection of Web2 and Web3, with its toy line resonating across major retail platforms. This collaboration with SOL Strategies represents a step toward enabling Web3-native brands to engage with institutional-grade infrastructure and explore blockchain ecosystems beyond Ethereum.

"A big part of Pudgy Penguins vision is to build on and contribute to ecosystems that are aligned with our ethos of creating a simple and user-friendly crypto experience," said Luca Netz, CEO of Pudgy Penguins. "This mentality is why we chose to partner with SOL Strategies, one of the largest and fastest-growing validator operators, to run a Solana Validator for PENGU. Working alongside SOL Strategies allows us to build the Solana ecosystem uniquely and transparently. This is just the first of many initiatives where Pudgy Penguins is set to improve blockchain infrastructure and institutional involvement."

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**About Pudgy Penguins**

Pudgy Penguins is one of the most recognized brands in Web3 consumer innovation. It is the first major NFT project to enter traditional retail, with Pudgy Penguins toys available in Walmart and other leading stores. The brand continues to pioneer blockchain-integrated consumer experiences, bridging Web3 with mainstream adoption. Learn more at <u>pudgypenguins.com</u>.

------

Investor Contact: <br>John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>203.682.8284

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the Pudgy Penguins validator partnership, its potential benefits to the Solana ecosystem, and the anticipated impact on SOL Strategies' white-label validator program and broader business objectives. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

------

![](exhibit99-100x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/248553</u>

------

## Exhibit 99.101

------

**SOL Strategies Secures up to USD $500 Million Convertible Note Facility to Expand SOL Holdings**

**Initial USD $20 Million Tranche; Capital to be Exclusively Allocated to SOL Purchases and Validator Growth**

Toronto, Ontario--(Newsfile Corp. - April 23, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "SOL Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced that it has entered into an arm's length agreement for the issuance of a convertible note (the "Notes") facility of up to USD $500 million (the "Facility") with ATW Partners (the "Investor"), signed on April 23, 2025. This Facility marks a first-of-its-kind in digital asset financing: capital is exclusively earmarked for purchasing SOL tokens, to be staked on validators operated directly by SOL Strategies, with yield shared between the parties.

Pursuant to the Facility, the Company will issue Notes in the aggregate principal amount of USD $20 million as its first tranche (the "Initial Closing"), with additional capacity of up to USD $480 million available in subsequent drawdowns, subject to certain conditions. The Initial Closing is expected to occur on or about May 1, 2025, subject to customary closing conditions.

In this novel structure, interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies.

This announcement reinforces SOL Strategies' position at the forefront of Solana infrastructure, as the Company continues to scale its Solana validator operations and blend capital markets innovation with deep technical deployment-while actively preparing for a potential Nasdaq uplisting as part of its broader cross-listing strategy.

Leah Wald, Chief Executive Officer of SOL Strategies, commented, "*This is the largest financing facility of its kind in the Solana ecosystem-and the first ever directly tied to staking yield. By securing up to half a billion dollars in strategic capital, we are doubling down on our conviction in Solana and our commitment to being the leading institutional staking platform. Every dollar deployed is immediately yield-generating, and accretive to both our balance sheet and our validator business. This structure is not only innovative-it is highly scalable*."

The Notes will be convertible into common shares of the Company at the prevailing market price on the date prior to conversion, subject to the terms and conditions of the Notes and the Facility. The Notes, and the underlying common shares, are to be issued outside of Canada pursuant Ontario Securities Commission Rule 72-503 - *Distributions Outside Canada* and accordingly the common shares issuable under conversion of the Notes will not be subject to any statutory hold period under applicable Canadian securities laws.

The securities described herein have not been, and will not be, registered under the U.S. Securities Act or any state registration requirements. This news release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is serving as placement agent to Sol Strategies. A finder's fee of 4% of the gross proceeds from the Initial Closing will be paid to the placement agent in cash.

------

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to (i) the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, (ii) expectations regarding the characteristics, value drivers, and anticipated benefits of the convertible note facility, (iii) expectations regarding the Company's future development opportunities in connection with the Facility, including but not limited to the Company's plans for validator growth and expansion, the Company's strategy regarding Solana ecosystem investments, and the Company's preparation for a potential Nasdaq uplisting , (iv) the Company's business plans and operations related thereto, (v) the Company's plans for purchasing and staking SOL tokens, (vi) the anticipated staking yield and revenue sharing structure, and (vii) the potential conversion of notes to equity. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. The Company cautions that future tranches beyond the initial USD $20 million are subject to certain conditions and there can be no guarantee these conditions will be met or that the full USD $500 million facility will be utilized. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

------

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

Investor Contact:<br>Doug Harris

Chief Financial Officer<br><u>doug@solstrategies.io</u><br> Tel: 416-480-2488

**SOURCE:** Sol Strategies

![](exhibit99-101x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/249513</u>

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## Exhibit 99.102

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**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. ("**Sol Strategies**" or the "**Company**") 217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

April 23, 2025

**Item 3 - News Release:**

The new release announcing the material change referred to in this report was disseminated over Newsfile on April 23, 2025 and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On April 23, 2025, the Company announced the issuance of a convertible note facility of up to US$500 million (the "**Facility**") with an affiliate of ATW Partners Opportunities Management, LLC (the "**Investor**"). Pursuant to the Facility, the Company will issue convertible notes ("**Notes**") in the aggregate principal amount of US$20 million as its first tranche (the "**Initial Closing**"), with additional capacity of up to US$480 million available in subsequent drawdowns, subject to certain conditions. The Initial Closing is expected to occur on or about May 1, 2025, subject to customary closing conditions.

Under the Facility, Interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies, as further described in the definitive agreements.

The Facility will be used by the Issuer to acquire SOL ("**Note Purchased SOL**") and to acquire SOL as a treasury asset for the Company's balance sheet or general corporate or working capital purposes.

**Item 5 - Full Description of Material Change:**

**5.1 Full Description of Material Change**

6 On April 23, 2025, the Company entered into a securities purchase agreement with an affiliate of ATW Partners Opportunities Management, LLC (the "**Investor**") pursuant to which the Company will issue convertible notes ("**Notes**") to the Investor under a facility of up to US$500 million (the "**Facility**"). Pursuant to the Facility, the Company will issue Notes in the aggregate principal amount of US$20 million as its first tranche (the "**Initial Closing**"), with additional capacity of up to US$480 million available in subsequent drawdowns, subject to certain conditions. The Notes will be issued at a price of US$1,000 for each US$1,000 of aggregate principal amount of Notes. The Initial Closing is expected to occur on or about May 1, 2025, subject to customary closing conditions.

------

The terms of the Facility are governed by securities purchase agreement (the "**SPA**") entered into with the Investors and executed Note issued to Investor for the Initial Closing.

The financing will be used to acquire the Note Purchased SOL and to acquire SOL as a treasury asset for the Company's balance sheet or general corporate or working capital purposes.

The Notes will be convertible into common shares of the Company at the prevailing market price on the date prior to conversion, subject to the terms and conditions of the Notes and the Facility. The number of Common Shares issuable upon conversion of any Conversion Amount (as defined below) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (as defined below) then in effect (as (the "Conversion Rate"). The conversion may occur at the option of the Investor, at any time and from time to time, commencing on the date of issuance and ending on the Maturity Date (as defined in the Note).

"**Conversion Amount**" means the sum of (x) the portion of the Principal to be converted, redeemed or otherwise with respect to which this determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued and unpaid late charges with respect to such portion of such Principal and such interest, if any.

"**Conversion Price**" means, as of any date of conversion or other date of determination the last closing trade price of the Common Shares as of the trading day ended immediately prior to such date of determination, subject to adjustment as provided in the SPA.

During the term of the Note, the Note shall accrue staking interest (the "**Staking Interest**", and such aggregate amount accrued and unpaid to the Investor from time to time, each a "**Staking Interest Amount**") at any time the Company, directly or indirectly, is entitled to Staking Rewards (as defined below) with respect to the SOL purchased with the proceeds of the Facility (the "**Note Purchased SOL**") . Within three (3) Business Days of the end of each calendar month (as applicable, each, a "**Staking Interest Payment Date**"), the Company shall pay any outstanding accrued Staking Interest Amount as of such applicable Staking Interest Payment Date to the Investor in SOL to the wallet address provided by the Investor and such Staking Interest Amount shall be calculated based on the outstanding Principal.

"**Staking Rewards**" means the total amount of SOL earned by the staking party from staking activities in respect of any Note Purchased SOL during any given calendar month, provided that, for greater certainty, Staking Rewards shall not include block rewards.

**6.1 Disclosure for Restructuring Transactions**

Not applicable.

------

**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer 416-480-2488 doug@solstrategies.io

**Item 9 - Date of Report:**

April 23, 2025

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## Exhibit 99.103

------

![](exhibit99-103x001.jpg)

**SOL STRATEGIES INC.**

**(formerly, Cypherpunk Holdings Inc.)**

**ANNUAL INFORMATION FORM**

**FOR THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2024**

**April 28, 2025**

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [GLOSSARY OF TERMS](#page_3) | [1](#page_3) |
| [GENERAL](#page_4) | [2](#page_4) |
| [CURRENCY AND EXCHANGE RATE INFORMATION](#page_5) | [3](#page_5) |
| [CAUTION REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS](#page_5) | [3](#page_5) |
| [CORPORATE STRUCTURE](#page_7) | [5](#page_7) |
| [GENERAL DEVELOPMENT OF THE BUSINESS](#page_7) | [5](#page_7) |
| [DESCRIPTION OF THE BUSINESS](#page_12) | [10](#page_12) |
| [RISK FACTORS](#page_14) | [12](#page_14) |
| [DIVIDENDS AND DISTRIBUTIONS](#page_32) | [30](#page_32) |
| [DESCRIPTION OF SHARE CAPITAL](#page_32) | [30](#page_32) |
| [MARKET FOR SECURITIES](#page_32) | [30](#page_32) |
| [ESCROWED SECURITIES](#page_33) | [31](#page_33) |
| [DIRECTORS AND OFFICERS](#page_33) | [31](#page_33) |
| [PROMOTER](#page_37) | [35](#page_37) |
| [LEGAL PROCEEDINGS AND REGULATORY ACTIONS](#page_38) | [36](#page_38) |
| [INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS](#page_38) | [36](#page_38) |
| [TRANSFER AGENT AND REGISTRAR](#page_38) | [36](#page_38) |
| [MATERIAL CONTRACTS](#page_38) | [36](#page_38) |
| [INTERESTS OF EXPERTS](#page_39) | [37](#page_39) |
| [ADDITIONAL INFORMATION](#page_39) | [37](#page_39) |
| [AUDIT COMMITTEE DISCLOSURE](#page_39) | [37](#page_39) |
| [APPENDIX "A" AUDIT COMMITTEE CHARTER](#page_43) | [41](#page_43) |

---

------

**GLOSSARY OF TERMS**

In this Annual Information Form, the following capitalized words and terms shall have the following meanings:

---

| | |
|:---|:---|
| **"AIF"** | This annual information form of the Company. |
| **"Audit Committee"** | The audit committee of the Board. |
| **"Bitcoin" or "BTC"** | The peer-to-peer payment system and the digital currency of the same name which uses open source cryptography to control the creation and transfer of such digital currency. |
| **"Blockchain"** | A system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer- to-peer network. |
| **"Board"** | The board of directors of the Company. |
| **"CEO"** | Chief Executive Officer. |
| **"Compensation**<br>**Committee"** | The compensation committee of the Board. |
| **"Common Shares"** | Common shares without par value in the capital of the Company. |
| "**Company**", "**we**", "**us**" **or "our"** | Sol Strategies Inc., its subsidiaries and affiliates, or any one of them, as the context requires. |
| **"CSA"** | The Canadian Securities Administrators. |
| **"CSE"** | The Canadian Securities Exchange. |
| **"Custodian" or**<br>**"Coinbase"** | Coinbase Custody Trust Company, LLC |
| **"Ethereum", "ETH" or "Ether"**  | The peer-to-peer payment system and the digital currency of the same name which uses open source cryptography to control the creation and transfer of such digital currency. |
| **"FTX"** | FTX Trading Ltd. |
| **"Lucy Labs"** | Lucy Labs Flagship Offshore Fund SPC. |
| **"NCIB"** | Normal Course Issuer Bid. |
| **"OBCA"** | *Business Corporations Act (Ontario)* |
| **"Option"** | An option to purchase one Common Share of the Company. |

---

------

-2- <br>

---

| | |
|:---|:---|
| **"Proconsul"** | Proconsul Capital Ltd. |
| **"SEC"** | The U.S. Securities and Exchange Commission. |
| **"SEDAR+"** | The System for Electronic Document Analysis and Retrieval+. |
| **"Solana" or "SOL"** | A high-performance, open-source blockchain platform designed to host decentralized applications (dApps), offering fast transaction speeds and low fees, using a unique hybrid consensus mechanism of Proof-of-Stake (PoS) and Proof-of-History (PoH). |
| **"Tony G"** | Tony G Co-Investment Holdings Ltd. (formerly Braingrid Limited). |
| **"USDC"** | USD Coin. |
| **"Validators"** | Node operators which stake tokens to secure the applicable blockchain by verifying transactions and proposing blocks, earning rewards while risking penalties for misconduct. |
| **"Wallet"** | A software and hardware platform that securely stores digital currency or cryptocurrency by guarding secure keys used for private access. |
| **"Warrant"** | A common share purchase warrant of the Company. |
| **"Wintermute"** | Wintermute Asia Pte. Ltd. |
| **"Zerocap"** | Zerocap Pty Ltd. |

---

**GENERAL**

Information contained in this AIF is given as of September 30, 2024, the financial year end of the Company, unless otherwise specifically stated.

CAD$ means a dollar of lawful money of Canada. USD$ or $ means a dollar of lawful money of the United States. AUD$ means a dollar of lawful money of Australia.

Market and industry data used throughout this AIF was obtained from various publicly available sources. Although the Company believes that these independent sources are generally reliable, the accuracy and completeness of such information are not guaranteed and have not been verified due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and the limitations and uncertainty inherent in any statistical survey of market size, conditions and prospects.

This AIF should be read in conjunction with the Company's audited consolidated financial statements and management's discussion and analysis for the financial year ended September 30, 2024. The financial statements and management's discussion and analysis are available under the Company's profile on the System for Electronic Data Analysis and Retrieval + (SEDAR+) at <u>www.sedarplus.ca</u>. The Company's financial statements are prepared in accordance with International Financial Reporting Standards.

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**CURRENCY AND EXCHANGE RATE INFORMATION**

The following table sets forth for each period indicated: (i) the exchange rates in effect at the end of the period; (ii) the high and low exchange rates during such period; and (iii) the average exchange rates for such period, for the U.S. dollar, expressed in Canadian dollars, as quoted by the Bank of Canada.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Year Ended September 30** | &nbsp;&nbsp;**Year Ended September 30** | &nbsp;&nbsp;**Year Ended September 30** |
|  | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2023** | &nbsp;&nbsp;**2022** |
|  | &nbsp;&nbsp;**CAD$** | &nbsp;&nbsp;**CAD$** | &nbsp;&nbsp;**CAD$** |
| Closing | &nbsp;&nbsp;1.3499 | &nbsp;&nbsp;1.3520 | &nbsp;&nbsp;1.3707 |
| High | &nbsp;&nbsp;1.3875 | &nbsp;&nbsp;1.3856 | &nbsp;&nbsp;1.3726 |
| Low | &nbsp;&nbsp;1.3205 | &nbsp;&nbsp;1.3128 | &nbsp;&nbsp;1.2329 |
| Average | &nbsp;&nbsp;1.3608 | &nbsp;&nbsp;1.3486 | &nbsp;&nbsp;1.2772 |

---

On April 25, 2025, the daily exchange rate as quoted by the Bank of Canada was USD$1.00 = CAD$1.3863.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS**

**Caution Regarding Forward-Looking Information**

This AIF contains "forward-looking information" within the meaning of that term under Canadian securities laws. This information relates to future events or future performance and reflects the Company's expectations and assumptions regarding such future events and performance. Forward-looking information can be identified by the use of words such as, but not limited to, "plans", "expects", "project", "predict", "potential", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

In particular, all statements, other than statements of historical facts included in this AIF that address activities, events or developments that management of the Company expects or anticipates will or may occur in the future contain forward-looking information, including but not limited to, statements with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial, operational and other projections and outlooks as well as statements or information concerning future operation plans, objectives, performance, revenues, growth, acquisition strategies, profits or operating expenses of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• details and expectations regarding the Company's investments in the cryptocurrency industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations regarding the Company's customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions in financial markets and the economy generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expectations regarding revenue growth due to changes in the Company's business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• development of laws and regulations governing the cryptocurrency industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requirements for additional capital and future financing options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of attractive investments that align with the Company's investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• listing of the Company's Common Shares on the Nasdaq;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future outbreaks of infectious diseases like COVID-19; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other expectations of the Company.

By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this AIF should not be unduly relied upon. These statements speak only as of the date of this AIF. Important factors that could cause actual results to differ materially from the Company's expectations are described in the Company's documents filed from time to time with the applicable regulatory authorities and such factors include, but are not limited to, risks related to safeguarding of digital assets; cryptocurrency and digital assets momentum risks; risks related to validator operations; risks related to staking operations; risks related to the focused business strategy and concentration of investments of the Company; risks related to cybersecurity threats, security breaches and hacks; risks related to the novelty of cryptocurrency exchanges and other trading venues; regulatory risks; risks related to the U.S. classification of crypto assets and the Investment Company Act of 1940; risks related to the banks ceasing to provide services to businesses providing crypto-currency related services; risks related to the impact of geopolitical events; risks related to the further development and acceptance of cryptocurrency; risks related to loss, theft or destruction of cryptocurrencies; risks related to the irrevocability of transactions; hard fork and air drop risks; risks related to the failure to maintain the cryptocurrency networks; insurance risk; risks related to competition; risks related to the Company's investment in private issuers and illiquid securities; risks related to macro-economic conditions; risks related to available opportunities and competition for investments; risks related to the integration of acquired businesses; risks related to additional financing requirements; risks related to no guaranteed return; risks related to the management of the Company's growth; risks related to due diligence by the Company on investment opportunities; risks related to exchange rate fluctuations; risks related to the Company's non- controlling interests; risks related to changes in legislation and regulatory risk; risks related to changes or development related to accounting standards; risks related to changes or development related to accounting standards; risks related to the Company's financial condition and Common Shares; and other risks described herein including under the heading "*Risk Factors - Risks Relating to the Business and Industry of the Company*".

When relying on forward-looking information to make decisions, readers should ensure that the preceding information, the risks and uncertainties described in "*Risk Factors*" and the other contents of this AIF are all carefully considered. The forward-looking information contained herein is current as of the date of this AIF, and, except as may be required by applicable law, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking information contained herein to reflect any change in expectations, estimates and projections with regard thereto or any changes in events, conditions or circumstances on which any information is based. Readers should not place undue importance on such forward-looking information and should not rely upon this information as of any other date. In addition to the disclosure contained herein, for more information concerning the Company's various risks and uncertainties, please refer to the Company's public filings available under its profile on SEDAR+ at <u>www.sedarplus.ca</u>

With regard to all information included herein relating to companies in the Company's investment portfolio, the Company has relied on information provided by the investee companies and on publicly available information disclosed by the respective companies.

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**CORPORATE STRUCTURE**

**Name, Address and Incorporation**

The Company was incorporated on October 1, 2002 in Ontario pursuant to the OBCA under the name "2016594 Ontario Inc." and changed its name to "Khan Resources Inc." on January 6, 2003. The Common Shares began trading on the CSE on May 14, 2012 under the symbol "KRI".

On March 6, 2018, the Company announced a change in its corporate direction to focus on selected cryptocurrencies and high impact investment opportunities related to Blockchain technology. On January 31, 2019, the Company filed a certificate of change of name under the OBCA and changed its name to "Cypherpunk Holdings Inc." and the Common Shares commenced trading on the CSE under the new symbol "HODL" on February 4, 2019. On September 12, 2024, the Company filed a certificate of change of name under the OBCA and changed its name to "Sol Strategies Inc." to reflect its new investment strategy centered on the Solana ecosystem.

The Common Shares are also listed for trading under the symbol "CYFRF" on the OTCQX Best Market.

The Company's head office and registered office is located at Suite 401, 217 Queen Street West, Toronto, Ontario, M5X 1B1.

The Company has no subsidiaries or other inter-corporate relationships.

**GENERAL DEVELOPMENT OF THE BUSINESS**

**Three Year History**

The following is a summary of the general development of the Company's business over the three most recently completed financial years.

***Subsequent to Fiscal 2024***

<u>Auditor</u>

On January 29, 2025, Kingston Ross Pasnak LLP, the Company's former auditor, resigned at the request of the Company, and Davidson & Company LLP was appointed to replace the former auditor as auditor of the Company.

<u>Listing</u>

On January 21, 2025, the Company announced that it qualified to trade on the OTCQX Best Market under the symbol "CYFRF", upgrading from the Pink market.

On December 5, 2025, the Company announced that it had submitted its application for listing on Nasdaq. The Company's listing application is subject to review and approval by Nasdaq's listing qualifications department for compliance with all Nasdaq Capital Market standards, as well as any other relevant regulatory approvals. The Company must also file a registration statement with the SEC and have it declared effective before its Common Shares will be listed on Nasdaq.

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<u>Financings</u>

On April 23, 2024, the Company announced that it had entered into a convertible note facility of up to USD$500 million (the "**Convertible Note Facility**") with an affiliate of ATW Partners Opportunities Management, LLC ("**ATW**"). Pursuant to the Convertible Note Facility, the Company will issue convertible notes ("**Notes**") to ATW in the aggregate principal amount of USD$20 million as its first tranche, with an additional capacity of up to USD$480 million available in subsequent drawdown, subject to certain conditions. The Notes will be issued at a price of USD$1,000 for each USD$1,000 of aggregate principal amount of Notes.

On January 24, 2025, the Company announced the completion of its second tranche private placement of convertible debenture units with an individual subscriber for gross proceeds of CAD$2.5 million. The financing consists of unsecured convertible debenture units with a 2.5% annual interest rate, a CAD$4.66 conversion price, and warrants exercisable at the same price for five years. The debentures are redeemable after three years at 112% of principal, plus accrued interest.

On January 16, 2025, the Company announced the completion of a private placement of convertible debentures with ParaFi Capital for gross proceeds of CAD$27.5 million, pursuant to the terms of a securities purchase agreement entered into on January 8, 2025. The financing consists of unsecured convertible debenture units with a 2.5% annual interest rate, a CAD$2.50 conversion price, and warrants exercisable at the same price for five years. The debentures are redeemable after three years at 112% of principal, plus accrued interest.

<u>Acquisitions</u>

On March 17, 2025, the Company completed the acquisition of three Validators and certain assets related thereto for CAD$35 million, pursuant to the terms of an asset purchase agreement entered into on March 7, 2025 with Michael Hubbard.

On December 31, 2024, the Company completed the acquisition of two Validators and certain assets related thereto for USD$6.5 million, pursuant to the terms of an asset purchase agreement entered into on December 20, 2024 with Orangefin Ventures LLC.

On November 25, 2024, the Company completed the acquisition of three Validators and certain assets related thereto for USD$18.2 million, pursuant to the terms of an asset purchase agreement entered into on November 14, 2024 with Ben Hawkins (*dba* Cogent Crypto).

<u>Credit Facility</u>

On October 22, 2024, the Company announced that it entered into an agreement dated October 21, 2024, with Antanas Guoga, the Company's Chairman and a director, providing for a CAD$10 million unsecured, revolving demand credit facility. On January 7, 2025 the Company announced that the Credit Facility was amended and restated to provide for a CAD$25 million unsecured, revolving demand credit facility to be used for the purchase of Solana tokens (the "**Credit Facility**"). The Credit Facility matures on January 6, 2027. CAD$16.3 million from the Credit Facility, including accrued interest, had been drawn by the Company as at March 31, 2025.

<u>Strategic Direction and Investments</u>

On April 15, 2025, the Company announced a partnership with Pudgy Penguins to launch a dedicated Solana validator in support of the PENGU ecosystem.

------

On February 24, 2025, the Company announced a new institutional staking partnership with Neptune Digital Assets Corp.

On February 20, 2025, the Company announced that it has been selected as an approved staking provider for Tetra Trust.

On October 2, 2024, the Company announced the recovery of approximately CAD$825,450 (USD$611,494) in the form of USDC from Lucy Labs due to the recovery by Lucy Labs of capital held at FTX pursuant to FTX's bankruptcy proceedings. The recovery represents a premium of 122% on the Company's original USD$500,000 investment, which the Company had written off in December 2022, after FTX filed for Chapter 11 bankruptcy protection.

<u>Management Board and Personnel Changes</u>

On March 17, 2025, the Company announced that Michael Hubbard was appointed the Chief Strategy Officer.

On March 3, 2025, the Company announced that Luis Berruga was appointed to the Company's board of directors.

On February 25, 2025, the Company announced that it engaged ICR, LLC to provide investor relations services to the Company.

On February 3, 2025, the Company announced that Moe Adham, director and Chief Investment Officer of the Company, resigned from the Company.

On January 21, 2025, the Company hired Andrew McDonald as the Company's Director of Operations.

On December 31, 2024, the Company announced that Max Kaplan was appointed the Head of Staking. On February 7, 2025, Max Kaplan was promoted to Chief Technology Officer.

On November 25, 2024, the Company announced the appointment of Anthony Pompliano as an advisor to the Company.

***Fiscal 2024***

<u>Strategic Direction and Investments</u>

On September 12, 2024, the Company announced a rebrand to "Sol Strategies" to reflect its new investment strategy centered on Solana. The Company's legal name change from "Cypherpunk Holdings Inc." to "Sol Strategies Inc." took effect on September 12, 2024, and was unanimously approved by the Company's board of directors and by its shareholders at the Company's shareholder meeting held on July 30, 2024.

On May 10, 2024, the Company announced the sale of 2,225,678 Animoca Brands shares for AUD$2.0 million, reducing its holdings to 4,365,231 shares. The Company also ceased its Bitcoin options writing program, maintaining 117.09 Bitcoin, while continuing investments in Chia Networks, NGRAVE, and mining hardware operated by MiningStore.

On March 11, 2024, the Company announced a strategic shift in focus to explore high-growth sectors such as emerging technologies and biotechnology, driven by evolving dynamics in the digital asset landscape, including the introduction of Bitcoin ETFs.

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On February 20, 2024, the Company finalized an agreement to sell 2.5 million shares of Animoca Brands at AUD$0.90 per share, with proceeds reinvested to align with its strategic focus on privacy technologies, high-performance computing, and decentralization trends.

<u>Management, Board and Personnel Changes</u>

On September 11, 2024, the Company announced that it entered into an investor relations agreement with Proconsul, pursuant to which Proconsul would provide strategic communication services to the Company.

On September 10, 2024, the Company announced the appointment of Ungad Chadda as an additional independent director joining the Company's board of directors.

On July 9, 2024, the Company announced the appointment of Leah Wald as President and Chief Executive Officer of the Company. Ms. Wald replaced Antanas Guoga, who continues to serve as a director of the Company.

<u>Normal Course Issuer Bid</u>

On June 12, 2024, the Company announced the completion of its NCIB initially announced on February 20, 2024. Under the NCIB, the Company purchased and cancelled a total of 7,603,343 Common Shares at an average price of CAD$0.1228 per share. These shares represented approximately 5% of the Company's issued and outstanding Common Shares as of the commencement of the NCIB.

***Fiscal 2023***

<u>Strategic Direction and Investments</u>

On March 31, 2023, the Company announced its decision to diversify its treasury by allocating up to 40% of its net assets to Bitcoin, reflecting its commitment to decentralized holdings. On November 14, 2022, the Company announced that it held no digital cryptocurrencies, having converted all stable coin holdings into US dollars, while maintaining investments in AB Strategies Fund, Chia Networks, and other assets.

On February 15, 2023, the Company announced the acquisition of 9.09 million shares of Animoca Brands for AUD$10 million, the sale of its 24,572 IPv4 addresses for CAD$1.16 million, and the divestment of its stake in AB Digital Strategies Fund for CAD$1.57 million, resulting in a 22% loss.

<u>Normal Course Issuer Bid</u>

On January 24, 2023, the Company announced its intention to commence a normal course issuer bid to repurchase up to 8,003,535 Common Shares, representing 5% of its issued shares, over a one-year period.

***Fiscal 2022***

<u>Strategic Direction and Investments</u>

On June 28, 2022, the Company announced a strategic shift, transitioning its treasury to cash in response to a challenging crypto market, with the aim of capitalizing on future investment opportunities. The Company's treasury held no Bitcoin or Ethereum after it sold 205.8209 ETH and 214.7203 BTC for total proceeds of CAD$6.38 million.

On April 26, 2022, the Company announced a USD$500,000 investment in the AB Digital Strategies Fund, managed by Isla Capital Ltd. The investment was made in two tranches, USD$250,000 on February 24, 2022, and USD$250,000 on April 20, 2022, into a market-neutral hedge fund targeting low volatility and minimal correlation to crypto markets.

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On March 29, 2022, the Company announced the sale of 1.5 million shares in Animoca Brands, realizing a 268% return on investment over five months, with total proceeds of CAD$5.4 million.

On March 22, 2022, the Company announced a USD$500,000 investment in the Lucy Labs Flagship Offshore Fund, a cryptocurrency arbitrage fund focused on quantitative and fundamental trading strategies, aligning with its shift from passive storage to active treasury management.

On March 15, 2022, the Company announced a CAD$630,000 (USD$500,000) investment in 168 Trading Limited, a Gibraltar-based cryptocurrency hedge fund focused on arbitrage, term structure trading, and quantitative strategies, as part of its shift toward active treasury management.

On February 22, 2022, the Company announced the sale of 350,000 Animoca Brands shares for CAD$1.31 million realizing a 265% profit over five months, while retaining 1.2 million shares. The Company also received a 3.06 BTC dividend (CAD$168,810) from zkSnacks, developer of Wasabi Wallet, marking its second dividend payout.

On February 2, 2022, the Company announced an investment of CAD$251,417 (USD$200,000) in GOAT.IO, acquiring a 4.7% stake.

On January 25, 2022, the Company announced the sale of 450,000 Animoca Brands shares for CAD$1.522 million, realizing a 241% profit in less than five months. The Company retained 1.55 million Animoca shares.

On October 21, 2021, the Company announced it entered into an agreement with MineOn LLC, *dba* MiningStore, a prominent cryptocurrency mining company. The Company acquired 25 Bitmain S19J Pro miners for USD$300,000, each generating 100 terahashes per second. Under a managed mining and profit- sharing agreement, the equipment is hosted and operated by MiningStore in Iowa, USA.

On October 14, 2021, the Company announced that it had acquired an additional 8,192 IP version 4 (IPv4) addresses.

<u>Management, Board and Personnel Changes</u>

On August 26, 2022, the Company announced the appointment of Antanas Guoga as interim President and Chief Executive Officer, effective August 25, 2022, following the departure of Jeffrey Gao.

On October 28, 2021, the Company announced the departure of Chief Operating Officer Daniel Cawrey and that incoming Chief Executive Officer Jeffrey Gao would take full strategic and operational leadership.

On October 27, 2021, the Company announced that Jeffrey Gao was appointed as President and CEO, while Mr. Guoga transitioned from Chief Executive Officer to Executive Chairman.

**Significant Acquisitions**

No "significant acquisition" (as such term is defined in National Instrument 51-102 - *Continuous Disclosure Obligations*) was completed during the most recently completed financial year.

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**DESCRIPTION OF THE BUSINESS**

**General**

Sol Strategies Inc. is a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana Blockchain ecosystem. With a core focus on operating and scaling Solana Validators, the Company plays an active role in supporting the network's performance and security while pursuing strategic opportunities across the broader decentralized finance landscape.

**Products and Services**

***Cryptocurrency Treasury***

The Company maintains a core portfolio of cryptocurrencies for long-term growth. During the most recently completed financial year, the Company redirected its operations to focus on the Solana Blockchain and ecosystem. This resulted in the purchase of 100,763 SOL for a total cost of approximately $20 million during the most recently completed financial year. The Company funded the purchase of SOL in part by the net disposition of 159.12 Bitcoin tokens for gross proceeds of approximately $14 million. The SOL is held in custody at Coinbase and delegated to the Company's Validators to earn staking rewards (as described below).

***Managing and Operating Validators***

The Company operates Validator nodes on several Proof of Stake Blockchain networks, including, but not limited to, Solana and SUI. These networks operate on delegated Proof of Stake mechanisms whereby users (stakers) may delegate tokens to Validators, as operated by Company, which are able to propose blocks (a set of transactions to be executed) in the Blockchain as well as verify and vote on the validity of blocks proposed by other Validator nodes. The Blockchain protocol pays rewards to stakers based on the performance of the Validators to which they have delegated tokens, and the Validators may charge a commission on those rewards, in addition to receiving transaction fees from the blocks they propose.

***Cryptocurrency Staking***

Staking in Blockchain networks is the process of locking up a number of tokens and delegating these to a Validator node. The Validator node has voting power in the network based on the total tokens delegated to it by all stakers relative to the total tokens delegated on the network. Staking is a passive action whereby the staker receives rewards from the Blockchain protocol based on the performance of the delegated Validator, without needing to actively participate in any consensus decisions or actions. In the Company's case, it owns Solana tokens (SOL) which it stakes and delegates to Validators that it operates, thus earning rewards from the Blockchain protocol.

***Investments***

The Company opportunistically invests in opportunities that complement its cryptocurrency activities.

**Specialized Skill and Knowledge**

The Company believes its success is largely dependent on the performance of its management, board of directors, consultants and key employees, many of whom have specialized experience relating to our industry, regulatory environment, and business. Such knowledge and skills include the areas of Blockchain technology, research and development, crypto assets, crypto asset market, technological security and scalability, sales and marketing, as well as legal compliance, finance and accounting. The Company has found that it can locate and retain competent employees and consultants in such fields and believes it will continue to be able to do so on an ongoing basis.

------

The Company believes that it has adequate personnel with the specialized skills and knowledge to successfully carry out the Company's business and operations. See "*Risk Factors - Dependence on Management Personnel*" of this AIF for a reference to the risks of losing such specialized skill and knowledge.

**Competitive Conditions**

There are one or more Canadian public companies that offer similar services to Sol Strategies, so there is competition in the market. Blockchain validation is a competitive business, however the combination of Company's offering of a strong SOL treasury, multiple Validator offerings with institutional ties and the development of new technology-based revenue streams sets it apart. The competitive landscape also includes global traditional ETFs and ETPs. Many of these ETFs and ETPs will also be customers of Sol Strategies as they do not operate their own Validators.

**Intangible Properties**

The Company takes measures to protect our intangible property and proprietary rights through contractual provisions, trademarks and managing our trade secrets. This includes requiring employees, contractors, and persons we do business with to execute non-disclosure agreements and other commercial agreements to govern our interactions and relationships with them.

The Company believes that the Sol Strategies brand name is identifiable in the Canadian market and important to the success of the Company. The Company has applied for trademark protection of key brand elements in Canada, the U.S. and the E.U., including SOL STRATEGIES and COGENT CRYPTO, among others. The Company has registered and maintains the registration of a variety of domain names that include and .

Sol Strategies uses the commercial names "Sol Strategies" and "HODL". The Company also holds domain names and associated intellectual properties, including but not limited to "Cogent Crypto", "Laine", "Orangefin Ventures" and "stakewiz.com".

**Cycles**

The Company's business is not cyclical or seasonal.

**Economic Dependence**

The Company currently is not party to any contracts upon which its business is substantially dependent.

**Changes to Contracts**

Management is not aware of any current or anticipated renegotiation or termination of contracts or subcontracts that are reasonably expected to impact the Company's business in the current financial year.

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**Environmental Protection**

As of the date hereof, there are no financial and/or operational impacts in relation to environmental protection requirements on the capital expenditures, earnings and competitive position of the Company.

**Employees**

As at the date hereof, the Company has 1 full time employee and 11 independent contractors who work on a part-time or full-time basis.

**Foreign Operations**

The Company's foreign operations primarily include the Company's Validator servers which are located in the Netherlands and the United States,. The Company's management team and consultants are based in the United States, United Kingdom, and New Zealand.

**Lending**

As of the date hereof, Sol Strategies does not conduct any lending operations, nor does it have in place any investment policies and/or investment restrictions.

**Bankruptcy or Similar Proceedings**

Within the three most recently completed financial years, there have not been any bankruptcy, receivership or similar proceedings against the Company, and the Company has not been party to any voluntary bankruptcy, receivership or similar proceedings.

**Reorganizations**

Other than as described under *"Description of the Business*", the Company has not completed any material reorganization within the three most recently completed financial years.

**RISK FACTORS**

The Company's business, operations, financial results and prospects are subject to the normal risks of its industry and are subject to various factors which are beyond the control of the Company. Certain of these risk factors are described below. The risks described below are not the only ones facing the Company. Additional risks not currently known to the Company, or that it currently considers immaterial, may also adversely impact the Company's business, operations, financial results or prospects, should any such other events occur.

**Risks Relating to the Business and Industry of the Company**

***Safeguarding of Digital Assets***

The Company retains one third-party custodian, Coinbase, to hold the Company's Solana, Bitcoin, and other cryptocurrency assets. The Custodian is the only party responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets. The Company's use of one custodian means that it is more prone to losses arising out of a failure of the Custodian's business or the failure of the Custodian to properly safeguard the Company's assets, whether through malfeasance or negligence. The Company's use of one custodian also means that it may be prone to losses arising out of a single instance of hacking, loss of passwords, compromised access credentials, malware or cyberattacks. Custodians may not indemnify us against any losses of digital assets. Digital assets held by certain custodians may be transferred into "cold storage" or "deep storage," in which case there could be a delay in retrieving such digital assets. The Company may also incur costs related to the third-party custody and storage of its digital assets. Any security breach, incurred cost or loss of digital assets associated with the use of a custodian could materially and adversely affect our trading execution, the value of our and the value of any investment in our Common Shares. Furthermore, there is, and is likely to continue to be, uncertainty as to how U.S. and non-U.S. laws will be applied with respect to custody of cryptocurrencies and other digital assets held on behalf of clients. For example, U.S.-regulated investment advisers may be required to keep client "funds and securities" with a "qualified custodian"; there remains numerous questions about how to interpret and apply this rule, and how to identify a "qualified custodian" of, digital assets, which are obviously kept in a different way from the traditional securities with respect to which such rules were written. The uncertainty and potential difficulties associated with this question and related questions could materially and adversely affect our ability to continuously develop and launch our business lines. The Company may also incur costs related to the third-party custody and storage of its digital assets. Any security breach, incurred cost or loss of digital assets associated with the use of a custodian could materially and adversely affect the value of the Company's assets and the value of any investment in the Common Shares.

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Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Sol Strategies is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase holds 100% of the Company's Bitcoin and Solana holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency the Company will enforce its rights under the custodial services agreement through arbitration under the laws of the State of New York, and will be in contact with Coinbase's regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Sol Strategies performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute, as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority as a cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform Zerocap as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre as a Digital Currency Exchange and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

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***Cryptocurrencies and Digital Assets Momentum Pricing Risk***

Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future appreciation in value. Cryptocurrency market prices are determined primarily using data from various exchanges, over-the-counter markets, and derivative platforms. Momentum pricing may have resulted, and may continue to result, in speculation regarding future appreciation in the value of cryptocurrencies inflating and making their market prices more volatile. As a result, they may be more likely to fluctuate in value due to changing investor confidence in future appreciation (or depreciation) in their market prices, which could adversely affect the value of the Company's cryptocurrency and inventory and thereby affect the Company's shareholders.

The profitability of our operations will be significantly affected by changes in prices of cryptocurrencies, and other digital assets. Cryptocurrencies, and other digital assets prices are highly volatile, can fluctuate substantially and are affected by numerous factors beyond our control, including use of such cryptocurrencies, demand, inflation and expectations with respect to the rate of inflation, global or regional political or economic events. If cryptocurrencies, and other digital assets prices should decline and remain at low market levels for a sustained period, we could determine that it is not economically feasible to continue activities.

The price and trading volume of any crypto asset is subject to significant uncertainty and volatility, depending on several factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in liquidity, market-making volume, and trading activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment and trading activities of highly active retail and institutional users, speculators, miners, and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decreased user and investor confidence in crypto assets and crypto platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative publicity or events and unpredictable social media coverage or "trending" of crypto assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability for crypto assets to meet user and investor demands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the functionality and utility of crypto assets and their associated ecosystems and networks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consumer preferences and perceived value of crypto assets and crypto asset markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory or legislative changes and updates affecting the cryptoeconomy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the characterization of crypto assets under the laws of various jurisdictions around the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maintenance, troubleshooting, and development of the Blockchain networks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability for crypto networks to attract and retain miners or Validators to secure and confirm transactions accurately and efficiently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interruptions in service from or failures of major crypto platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of an active derivatives market for various crypto assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• availability of banking and payment services to support crypto-related projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• level of interest rates and inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• national and international economic and political conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global cryptocurrency supply;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the software, software requirements or hardware requirements underlying a Blockchain network;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition for and among various cryptocurrencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the total number of cryptocurrencies and other digital assets in existence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or perceived manipulation of the markets for cryptocurrencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• currency exchange rates, including the rates at which cryptocurrencies and other digital assets may be exchanged for fiat currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fiat currency withdrawal and deposit policies of cryptocurrency exchanges and liquidity of such cryptocurrency exchanges; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maintenance and development of the open-source software protocol of various cryptocurrency networks.

***Risks related to the Validator Operations***

A significant portion of the revenue generated by the Company comes from the awards realized by managing the Validators and by staking its own assets to such Validators. There is a risk that fewer holders delegate their Solana to Sol Strategies' Validators, resulting in fewer awards and lower yields to the Company.

In addition, by running Validators, the Company is exposed to the risk of loss of its staked digital assets if it fails to operate the node in accordance with applicable protocol rules, as the Company's digital assets may be "slashed" or inactivity penalties may be applied if the Validator node "double signs" or is offline for a prescribed period of time. The Company seeks to mitigate this risk by staffing and employing internal control systems to monitor and safeguard the assets.

***Risks related to Staking Operations***

The Company operates Validators and in turn, earns crypto token rewards for processing transactions and securing crypto networks. The Company expects to, in large part, re-stake its crypto token rewards to its Validators. The Company's decision to stake an individual crypto token depends on a combination of network quality, network liquidity and expected staking compensation, the percentage of which varies from token to token. The compensation percentage is determined by a combination of a network's natural inflation rate, the transaction fees generated on the network, a token's price, and the percent of total tokens being staked. As such, the Company's compensation percentage may fall temporarily due to a short-term decline in transaction volume or an increase in the percent of crypto tokens being staked. The Company has no control over the compensation percentages of the various crypto tokens it chooses to stake, and the compensation percentage may fall below expected levels for temporarily or permanently. The compensation percentage is expected to decrease as sector activity increases and more crypto tokens are invested in specific tokens. Staking revenues could decrease to a level that materially and adversely affects the Company's staking assets and staking strategies, the value of its staking assets and the value of any investment in the Company.

***Focused Business Strategy and Concentration of Investments***

Since its name change to "SOL Strategies Inc." in September 2024, the Company has been focused on holding Solana, seeking SOL price appreciation, while also investing in projects, protocols, technologies, and businesses related to the Solana ecosystem and decentralized technologies. The Company's main activity has since been generating revenue from staking SOL, acquiring Validators predominantly on the Solana Blockchain, building staking related intellectual property and assessing revenue opportunities related to Solana and staking. The specific focus is inherently more risky than traditional investments and could cause the Company to be more susceptible to particular economic, political, regulatory, technological or industry conditions or occurrences when compared with a company that has a more diversified business model.

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Other than as described herein, there are no restrictions on the proportion of the Company's funds and no limit on the amount of funds that may be allocated to SOL or any other investment. The Company may participate in a limited number of investments and, as a consequence, its financial results may be substantially adversely affected by the unfavorable performance of SOL or any other single investment. Completion of one or more investments may result in a highly concentrated investment in a particular company, commodity or geographic area resulting in the performance of the Company depending significantly on the performance of such company, commodity or geographic area.

***Cybersecurity Threats, Security Breaches and Hacks***

As with any other computer code, flaws in cryptocurrency source code have been exposed by certain malicious actors. Several errors and defects have been found and corrected, including those that disabled some functionality for users and exposed users' information. Discovery of flaws in or exploitations of the source code that allow malicious actors to take or create cryptocurrencies can occur.

Security breaches, computer malware and computer hacking attacks have been a prevalent concern in the Solana, Bitcoin and other cryptocurrency exchange markets. Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause intentional malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer viruses, could harm the Company's business operations or result in loss of the Company's assets. Any breach of the Company's infrastructure could result in damage to the Company's reputation and reduce demand for the Common Shares, resulting in a reduction in the price of the Common Shares. Furthermore, the Company believes that if its assets grow, it may become a more appealing target for security threats, such as hackers and malware.

Any security procedures implemented cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Company. The security procedures and operational infrastructure of the Company may be breached due to the actions of outside parties, error or malfeasance of an employee of the Company or otherwise, and, as a result, an unauthorized party may obtain access to the Company's cryptocurrency account, private keys, data or cryptocurrencies. Additionally, outside parties may attempt to fraudulently induce employees of the Company to disclose sensitive information in order to gain access to the Company's infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event, and often are not recognized until launched against a target, the Company may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of one of the Company's accounts occurs, the market perception of the effectiveness of the Company could be harmed.

As technological change occurs, the security threats to the Company's cryptocurrencies and other digital assets will likely adapt and previously unknown threats may emerge. The Company's ability to adopt technology in response to changing security needs or trends may pose a challenge to the safekeeping of the Company's cryptocurrencies and other digital assets. To the extent that the Company is unable to identify and mitigate or stop new security threats, the Company's cryptocurrencies and other digital assets may be subject to theft, loss, destruction or other attack.

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***Cryptocurrency Exchanges and other Trading Venues are Relatively New***

The Company maintains its holdings of cryptocurrencies at its licensed custodian and may from time to time, allocate a portion of its cryptocurrency to exchanges to facilitate trading of cryptocurrencies and options to buy or sell cryptocurrencies. To the extent that cryptocurrency exchanges or other trading venues are involved in fraud or experience security failures or other operational issues, this could result in a reduction in cryptocurrency prices. Cryptocurrency market prices depend, directly or indirectly, on the prices set on exchanges and other trading venues, which are new and, in most cases, largely unregulated as compared to established, regulated exchanges for securities, derivatives and other currencies. For example, in the past, a number of cryptocurrency exchanges have been closed due to fraud, business failure or security breaches. In many of these instances, the customers of these exchanges were not compensated or made whole for the partial or complete losses of their account balances in such exchanges. While smaller exchanges are less likely to have the infrastructure and capitalization that provide larger exchanges with additional stability, larger exchanges may be more likely to be appealing targets for hackers and "malware" (i.e., software used or programmed by attackers to disrupt computer operation, gather sensitive information, or gain access to private computer systems) and may be more likely to be targets of regulatory enforcement action.

***Regulatory Risks***

As cryptocurrencies have grown in both popularity and market size, governments around the world have reacted differently to cryptocurrencies with certain governments deeming them illegal while others have allowed their use and trade. Ongoing and future regulatory actions may alter, perhaps to a materially adverse extent, the ability of the Company to continue to operate. The effect of any future regulatory change on any cryptocurrency, project or protocol that the Company may hold is impossible to predict, but such change could be substantial and adverse to the space as a whole, as well as potentially to the Company.

Governments may, in the future, restrict or prohibit the acquisition, use or redemption of cryptocurrencies. Ownership of, holding or trading in cryptocurrencies may then be considered illegal and subject to sanction. Governments may also take regulatory action that may increase the cost and/or subject cryptocurrency companies to additional regulation.

In Canada, the CSA, the umbrella group for the provincial and territorial securities regulators, have generally taken the position that securities laws apply to cryptocurrencies. The CSA, beginning in 2017, has published a series of staff notices outlining their position and explaining how securities laws apply to various aspects of the cryptocurrency industry. The majority of those Staff Notices have dealt with cryptocurrency trading platforms and other businesses that hold cryptocurrencies on behalf of clients, which the Company does not do as part of its business.

The CSA has also, however, published staff notices focused on the analysis of when a cryptocurrency constitutes a security for securities law purposes. On August 24, 2017 and June 11, 2018, the CSA published CSA Staff Notice 46-307 - *Cryptocurrency Offerings* and CSA Staff Notice 46-308 - *Securities Law Implications for Offerings of Tokens*, respectively, each providing guidance on whether token offerings are subject to Canadian securities laws. While the Company does not create or sell digital assets of its own issue, it holds a number of digital assets from a variety of issuers. In the event that any of these were determined to be securities, it could negatively impact the issuers of those digital assets by making trading subject to prospectus requirements, which could reduce the market price of such assets and therefore devalue the holdings of the Company.

While the Company does not have operations in the United States, the Company reviews development of the cryptocurrency regulatory environment in the United States on an ongoing basis due to the proximity of United States to Canada. In comparison to traditional securities or commodities markets, U.S. law and regulation remains thinly developed with respect to financial services provided to the cryptocurrency and crypto asset markets. Although recent years have seen some guidance emerge with respect to the question of whether a crypto asset constitutes a security for certain purposes under U.S. law, there remains little or no clear legal authority or established practice with respect to the application to crypto assets of concepts like staking and lending of cryptocurrency, fungibility, settlement, trade execution and reporting, collateralization rehypothecation, custody, repo, margin, restricted securities, short sales, bankruptcy and insolvency and many others. Some or all of these concepts may be needed for crypto-related marketplaces to continue to grow, mature and attract institutional participants; there can be no assurances that rules and practices for such concepts will develop in the United States in a manner that is timely, clear, favorable to the Company or compatible with other jurisdictions' regimes in which the Company operates. Furthermore, to the extent the Company offers any of these financial services, emerging regulation or enforcement activity may have a material impact on the Company's ability to continue providing such service thereby affecting the Company's revenues and profitability as well as its reputation and resources.

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Governments may in the future take regulatory actions that prohibit or severely restrict the right to acquire, own, hold, sell, use or trade cryptocurrencies or to exchange cryptocurrencies for fiat currency. By extension, similar actions by other governments may result in the restriction of the acquisition, ownership, holding, selling, use or trading in the common shares of the Company's Common Shares. Such a restriction could result in the Company liquidating its cryptocurrency investments at unfavorable prices and may adversely affect the Company's shareholders.

The Company has not received any exemptive relief from regulators in Canada. The Company discusses regulatory compliance with its external legal counsel on a regular basis. Investments in the light of their exposure to digital assets must always be assessed by every investor based on the circumstances and legal and regulatory conditions applicable to that investor.

***U.S. Classification of Crypto Assets and Investment Company Act of 1940***

The SEC and its staff have taken the position that certain crypto assets fall within the definition of a "security" under the U.S. federal securities laws. The legal test for determining whether any given crypto asset is a security is a highly complex, fact-driven analysis that evolves over time, and the outcome is difficult to predict. The SEC generally does not provide advance guidance or confirmation on the status of any particular crypto asset as a security. Furthermore, the SEC's views in this area have evolved over time and it is difficult to predict the direction or timing of any continuing evolution. It is also possible that a change in the governing administration or the appointment of new SEC commissioners could substantially impact the views of the SEC and its staff. Public statements by senior officials at the SEC indicate that the SEC does not intend to take the position that Solana, Bitcoin or Ether are securities (in their current form). Bitcoin and Ether are the only crypto assets as to which senior officials at the SEC have publicly expressed such a view. Moreover, such statements are not official policy statements by the SEC and reflect only the speakers' views, which are not binding on the SEC or any other agency or court and cannot be generalized to any other crypto asset. With respect to all other crypto assets, there is currently no certainty under the applicable legal test that such assets are not securities, notwithstanding the conclusions we may draw based on our risk-based assessment regarding the likelihood that a particular crypto asset could be deemed a "security" under applicable laws. Similarly, though the SEC's Strategic Hub for Innovation and Financial Technology published a framework for analyzing whether any given crypto asset is a security in April 2019, this framework is also not a rule, regulation or statement of the SEC and is not binding on the SEC. In January 21, 2025, the SEC launched a crypto task force, led by Commissioner Hester Peirce, dedicated to developing a comprehensive and clear regulatory framework for crypto assets. On April 4, 2025, the SEC issued guidance clarifying that it does not deem certain U.S. dollar-backed, fully reserved, non-yield- bearing stablecoins to be "securities" under applicable laws.

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Several foreign jurisdictions have taken a broad-based approach to classifying crypto assets as "securities," while other foreign jurisdictions, such as Switzerland, Malta, and Singapore, have adopted a narrower approach. As a result, certain crypto assets may be deemed to be a "security" under the laws of some jurisdictions but not others. Various foreign jurisdictions may, in the future, adopt additional laws, regulations, or directives that affect the characterization of crypto assets as "securities." The classification of a crypto asset as a security under applicable law has wide-ranging implications for the regulatory obligations that flow from the offer, sale, trading, and clearing of such assets.

Additionally, we do not currently intend to register as an investment company under the Investment Company Act. To the extent that the Company holds and transacts in cryptocurrencies that do not constitute securities, the Company believes that such holdings and transactions will not cause the Company to be deemed to be an investment company. While we do not believe that our current and future business activities will cause us to be deemed an investment company, if we are required to register as an investment company, we would be forced to comply with substantive requirements under the Investment Company Act, including limitations on our ability to borrow, limitations on our capital structure, limitations on our ability to issue additional common stock, restrictions on acquisitions of interests in associated companies, prohibitions on transactions with affiliates, restrictions on specific investments, and compliance with governance, reporting, record keeping, voting, proxy disclosure and other statutory requirements and related rules and regulations. If we are forced to comply with those requirements, we would be required to change our structure and could be prevented from successfully executing our business strategy.

Further, the classification of certain crypto assets as securities could draw negative publicity and a decline in the general acceptance of the crypto asset.

***Banks May Cut off Banking Services to Businesses that Provide Cryptocurrency-related Services***

A number of companies that provide cryptocurrency-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Similarly, a number of such companies have had their existing bank accounts closed by their banks. Banks may refuse to provide bank accounts and other banking services to cryptocurrency related companies or companies that accept cryptocurrencies for a number of reasons, such as perceived compliance risks or costs. The difficulty that many businesses that provide cryptocurrency-related services have and may continue to have in finding banks willing to provide them with bank accounts and other banking services may be currently decreasing the usefulness of cryptocurrencies as a payment system and harming public perception of cryptocurrencies or could decrease its usefulness and harm its public perception in the future. Similarly, the usefulness of cryptocurrencies as a payment system and the public perception of cryptocurrencies could be damaged if banks were to close the accounts of many or of a few key businesses providing cryptocurrency-related services. This could decrease the market prices of cryptocurrencies and adversely affect the value of the Company's cryptocurrency inventory.

***Impact of Geopolitical Events***

Crises may motivate large-scale purchases of cryptocurrencies which could increase the price of cryptocurrencies rapidly. This may increase the likelihood of a subsequent price decrease as crisis-driven purchasing behavior wanes, adversely affecting the value of the Company's cryptocurrency holdings. The possibility of large-scale purchases of cryptocurrencies in times of crisis may have a short-term positive impact on the prices of same. Future geopolitical crises may erode investors' confidence in the stability of cryptocurrencies and may impair their price performance which would, in turn, adversely affect the Company's cryptocurrency holdings.

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As an alternative to fiat currencies that are backed by central governments, cryptocurrencies are subject to supply and demand forces based upon the desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how such supply and demand will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of cryptocurrencies either globally or locally. Large-scale sales of cryptocurrencies would result in a reduction in their market prices and adversely affect the Company's operations and profitability.

***Further Development and Acceptance of Cryptocurrency***

The further development and acceptance of cryptocurrency and other cryptographic and algorithmic protocols governing the issuance of transactions in cryptocurrencies, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The growth of this industry in general, and the use of cryptocurrencies in particular, is subject to a high degree of uncertainty, and the slowing or stopping of the development or acceptance of such networks may adversely affect the value of the corresponding cryptocurrencies, and thus may adversely affect the Company's operations. The factors affecting the further development of the industry, include, but are not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continued worldwide growth in the adoption and use of cryptocurrencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• governmental and quasi-governmental regulation of cryptocurrencies and their use, or restrictions on or regulation of access to and operation of the network or similar cryptocurrency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in consumer demographics and public tastes and preferences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the maintenance and development of the open-source software protocol of relevant networks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions and the regulatory environment relating to digital assets and decentralized finance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• negative consumer sentiment and perception of cryptocurrencies.

Currently, there is relatively small use of cryptocurrencies in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect the Company's operations, investment strategies, and profitability.

As relatively new products and technologies, cryptocurrencies have not been widely adopted, for example as a means of payment for goods and services, by major retail and commercial outlets. Conversely, a significant portion of cryptocurrency demand is generated by speculators and investors seeking to profit from the short-term or long-term holding of cryptocurrencies. The relative lack of acceptance of cryptocurrencies in the retail and commercial marketplace limits the ability of end-users to use them to pay for goods and services or other direct use cases that may arise. A lack of expansion by cryptocurrencies into retail and commercial markets, or a contraction of such use, may result in increased volatility or a reduction in their market prices, either of which could adversely impact the Company's operations, investment strategies, and profitability. Further, if fees increase for recording transactions in the applicable Blockchain, demand for cryptocurrencies may be reduced and prevent the expansion of the network to retail merchants and commercial businesses, resulting in a reduction in the price of cryptocurrencies.

***Risk of Loss, Theft or Destruction of Cryptocurrencies***

There is a risk that some or all of the Company's cryptocurrencies could be lost, stolen or destroyed. Digital assets that are held internally via multi-signature cold storage may be prone to loss or theft as a result of hacking, loss of passwords, compromised access credentials, malware or cyberattacks. If the Company's cryptocurrencies are lost, stolen or destroyed under circumstances rendering a party liable to the Company, the responsible party may not have the financial resources sufficient to satisfy the Company's claim.

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***Irrevocability of Transactions***

Bitcoin and most other cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Such transactions are not reversible without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded in a block that is added to the Blockchain, an incorrect transfer of cryptocurrencies or a theft of cryptocurrencies generally will not be reversible and the Company may not be capable of seeking compensation for any such transfer or theft. To the extent that the Company is unable to seek a corrective transaction with the third party or is incapable of identifying the third party that has received the Company's cryptocurrencies through error or theft, the Company will be unable to revert or otherwise recover incorrectly transferred cryptocurrencies. The Company will also be unable to convert or recover cryptocurrencies transferred to uncontrolled accounts.

***Hard Fork and Air Drop Risks***

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork. Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free. The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

***Potential Failure to Maintain the Cryptocurrency Networks***

Many cryptocurrency networks operate based on an open-source protocol maintained by the core developers of such networks and other contributors. As such protocols are not sold and their uses do not generate revenues for its development team, the core developers are generally not compensated for maintaining and updating such network protocols. Consequently, there is a lack of financial incentive for developers to maintain or develop such networks and the core developers may lack the resources to adequately address emerging issues with such network protocol. Although the many networks are currently supported by the core developers, there can be no guarantee that such support will continue or be sufficient in the future. To the extent that material issues arise with the such network protocol and the core developers and open source contributors are unable to address the issues adequately or in a timely manner, such networks and an investment in the Common Shares may be adversely affected.

***Insurance Risk***

The Company does not maintain insurance, other than directors' and officers' insurance. The Company is not insured against every risk to which it is exposed, including those related to the custody of assets (except any insurance that is provided by the Company's third-party custodian). Based on the Company's review of insurance policies, the Company has not identified insurance that would be appropriate for its specific operations or that would be available on commercially reasonable terms.

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***Competition***

The Company operates in a highly competitive industry and competes against unregulated or less regulated companies and companies with greater financial and other resources, and our business, operating results, and financial condition may be adversely affected if we are unable to respond to our competitors effectively. While the Company's specific business of operating Validators and staking primarily in the Solana ecosystem is unique to them, there is a risk that another crypto asset that performs the same functions will take market share from Sol Strategies.

The cryptoeconomy is highly innovative, rapidly evolving, and characterized by healthy competition, experimentation, frequent introductions of new products and services, and subject to uncertain and evolving industry and regulatory requirements. We expect competition to further intensify in the future as existing and new competitors introduce new products or enhance existing products. These competitors could have various competitive advantages over us, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater name recognition, longer operating histories, and larger market shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• larger sales and marketing budgets and organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• more established marketing, banking, and compliance relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• greater resources to make acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lower labour, compliance, risk mitigation, and research and development costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operations in certain jurisdictions with lower compliance costs and greater flexibility to explore new product offerings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• substantially greater financial, technical, and other resources.

If the Company is unable to compete successfully, or if competing successfully requires the Company to take costly actions in response to the actions of the Company's competitors, the Company's business, operating results, and financial condition could be adversely affected.

Harm to the Company's brand and reputation could adversely affect the Company's business. The Company's reputation and brand may be adversely affected by complaints and negative publicity about the Company, even if factually incorrect or based on isolated incidents. Damage to the Company's brand and reputation may be caused by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cybersecurity attacks, privacy or data security breaches, or other security incidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complaints or negative publicity about the Company, its management team, its other employees or contractors or third-party service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or alleged illegal, negligent, reckless, fraudulent or otherwise inappropriate behavior by its management team, its other employees or contractors or third-party service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unfavorable media coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• litigation involving, or regulatory actions or investigations into its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a failure to comply with legal, tax and regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any perceived or actual weakness in its financial strength or liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any regulatory action that results in changes to or prohibits certain lines of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a failure to operate our business in a way that is consistent with its values and mission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a sustained downturn in general economic conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of the foregoing with respect to its competitors, to the extent the resulting negative perception affects the public's perception of the Company or its industry as a whole.

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***Private Issuers and Illiquid Securities***

The Company invests in securities and/or digital assets of private issuers or projects. These may be subject to trading restrictions, including hold periods, and there may not be any market for such securities or digital assets. These limitations may impair the Company's ability to react quickly to market conditions or negotiate the most favourable terms for exiting such investments. Investments in private issuers or projects are subject to a relatively high degree of risk. There can be no assurance that a public market will develop for any of the Company's private investments, or that the Company will otherwise be able to realize a return on such investments.

The value attributed to securities and/or digital assets of private issuers or projects will be the cost thereof, subject to adjustment in limited circumstances, and therefore may not reflect the amount for which they can actually be sold. Because valuations, and in particular valuations of investments for which market quotations are not readily available, are inherently uncertain, may fluctuate within short periods of time and may be based on estimates, determinations of fair value may differ materially from the values that would have resulted if a ready market had existed for the investments.

The Company may also invest in illiquid securities of public issuers. A considerable period of time may elapse between the time a decision is made to sell such securities and the time the Company is able to do so, and the value of such securities could decline during such period. Illiquid investments are subject to various risks, particularly the risk that the Company will be unable to realize its investment objectives by sale or other disposition at attractive prices or otherwise be unable to complete any exit strategy. In some cases, the Company may be prohibited by contract or by law from selling such securities for a period of time or otherwise be restricted from disposing of such securities. Furthermore, the types of investments made may require a substantial length of time to liquidate.

The Company may also make direct investments in publicly traded securities that have low trading volumes. Accordingly, it may be difficult to make trades in these securities without adversely affecting the price of such securities.

***Sensitivity to Macro-Economic Conditions***

The success of the Company's investments is interconnected to the growth of disruptive technologies. The Company may be adversely affected by the falling share prices of the securities of investee companies, cryptocurrencies, and other crypto assets, as the trading price for the Common Shares may reflect the estimated aggregate value of the Company's portfolio of investments and assets under management. The factors affecting current macro-economic conditions are beyond the control of the Company.

***Available Opportunities and Competition for Investments***

The Company can expect to encounter competition from other entities having similar investment objectives, including institutional investors and strategic investors. These groups may compete for the same investments as the Company, may be better capitalized, have more personnel, have a longer operating history and have different return targets. As a result, the Company may not be able to compete successfully for investments. In addition, competition for investments may lead to the price of such investments increasing which may further limit the Company's ability to generate desired returns. There can be no assurance that there will be a sufficient number of suitable investment opportunities available to invest in or that such investments can be made within a reasonable period of time. There can be no assurance that the Company will be able to identify suitable investment opportunities, acquire them at a reasonable cost or achieve an appropriate rate of return. Identifying attractive opportunities is difficult, highly competitive and involves a high degree of uncertainty. Potential returns from investments will be diminished to the extent that the Company is unable to find and make a sufficient number of attractive investments.

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***Competition from other Staking Companies***

The Company can expect to compete with other businesses focused on developing substantial digital asset staking operations. Any market participant with sufficient capital and know-how has the ability to acquire crypto tokens on the open market and start staking, which would inherently increase competition. Although, because there are a wide range of crypto tokens being staked across the networks the Company participates in, and accordingly, the Company's management believes that any negative impact on the Company's operations as a result of competition in the sector would not be materially adverse, it is possible that such competition and the lack of barriers to entry to the market could have a material adverse effect on the Company or the value of the Common Shares.

***Integration of Acquired Businesses***

The Company may from time to time merge with or acquire other companies or businesses both locally and globally. The integration of the operations and financial systems of any such companies or businesses may require substantial time and resources from the Company's personnel, in particular where such companies or businesses operate under different regulatory regimes or prepare their financial records in accordance with accounting regimes other than IFRS. To the extent that any such companies or businesses are in a net operating loss position at the time of acquisition, it may have a negative impact on the Company's overall financial position.

***Additional Financing Requirements***

The Company anticipates ongoing requirements for funds to support its growth and may seek to obtain additional funds for these purposes through public or private equity, or debt financing. There are no assurances that additional funding will be available on acceptable terms, at an acceptable level or at all. Any additional equity financing may cause shareholders to experience dilution, and any debt financing would result in interest expense and possible restrictions on the Company's operations or ability to incur additional debt. Any limitations on the Company's ability to access the capital markets for additional funds could have a material adverse effect on its ability to grow its investment portfolio.

***No Guaranteed Return***

There is no guarantee that an investment in the Company's securities will earn any positive return in the short term or long term. The task of identifying investment opportunities, monitoring such investments and realizing a significant return is difficult. Many organizations operated by persons of competence and integrity have been unable to make, manage and realize a return on such investments. In addition, past performance provides no assurance of future success.

***Management of the Company's Growth***

Significant growth in the business, as a result of acquisitions or otherwise, could place a strain on the Company's managerial, operational and financial resources and information systems. Future operating results will depend on the ability of senior management to manage rapidly changing business conditions, and to implement and improve the Company's technical, administrative and financial controls and reporting systems. No assurance can be given that the Company will succeed in these efforts. The failure to effectively manage and improve these systems could increase costs, which could have a materially adverse effect on the Company's operating results and overall performance.

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***Due Diligence***

The due diligence process undertaken by the Company in connection with investment opportunities may not reveal all facts that may be relevant in connection with the investments. Before making investments, the Company conducts due diligence that it deems reasonable and appropriate based on the facts and circumstances applicable to each investment. When conducting due diligence, the Company may be required to evaluate important and complex business, financial, tax, accounting, environmental and legal issues. Outside consultants, legal advisors, accountants and investment banks may be involved in the due diligence process in varying degrees depending on the type of investment. Nevertheless, when conducting due diligence and making an assessment regarding an investment, the Company relies on resources available including information provided by the target of the investment and, in some circumstances, third- party investigations. The due diligence process that is carried out with respect to investment opportunities may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful.

***Exchange Rate Fluctuations***

A significant portion of the Company's cryptocurrency and digital asset holdings could be invested in United States dollar denominated investments or other foreign currencies. Changes in the value of the foreign currencies in which the Company's investments are denominated could have a negative impact on the ultimate return on its investments and overall financial performance.

***Non-controlling Interests***

The Company's investments include debt instruments and equity securities of companies that it does not control. Such instruments and securities may be acquired through trading activities or through purchases of securities directly from the issuer. These investments are subject to the risk that the company in which the investment is made may make business, financial or management decisions with which the Company does not agree or that the majority stakeholders or the management of the investee company may take risks or otherwise act in a manner that does not serve the Company's interests. If any of the foregoing was to occur, the value of the Company's investments could decrease and its financial condition, results of operations and cash flow could suffer as a result.

***Changes in Legislation and Regulatory Risk***

There can be no assurance that laws applicable to the Company or the businesses in which the Company invests, including securities legislation, will not be changed in a manner which adversely affects the Company. If such laws change, such changes could have a negative effect upon the value of the Company and upon investment opportunities available to the Company.

***Changes or Development related to Accounting Standards***

Changes in, or the development of guidance relating to, accounting standards governing the preparation of the Company's financial statements and future events could have a material impact on the Company's financial condition, results of operations, cash flows and other financial data.

From time to time, regulators change the financial accounting and reporting standards governing the preparation of the Company's financial statements or the interpretation of those standards. These changes are difficult to predict and can materially impact how the Company records and reports its financial condition, results of operations, cash flows and other financial data. In some cases, the Company may be required to apply a new or revised standard retroactively or to apply an existing standard differently, also retroactively, in each case potentially resulting in the restatement of prior period financial statements and related disclosures. Additionally, the Company accounting policies and methods are fundamental to how it records and reports its financial condition and results of operations. The preparation of financial statements in conformity with IFRS requires management to make estimates based upon assumptions about future economic and market conditions which affect reported amounts and related disclosures in our financial statements. If subsequent events occur that are materially different than the assumptions and estimates we used, its reported financial condition, results of operation and cash flows may be materially negatively impacted.

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In addition, the accounting for, and audit standards relating to, digital assets remain subject to further guidance. To the extent that such guidance imposes obligations on audit firms that they are not able to meet with respect to the review of digital assets, the Company could have difficulty in obtaining an audit opinion, filing audited financial statements in a timely manner or obtaining an unqualified opinion.

**Risks Relating to the Financial Condition of the Company**

***Limited Operating History***

The Company's limited operating history and the lack of meaningful historical financial data makes it difficult to fully evaluate the Company's prospects. To the extent that the Company is able to execute its business plan, its business will be subject to all of the problems that typically affect a business with a limited operating history, such as unanticipated expenses, capital shortfalls, delays in program development and possible cost overruns. Investment in the securities of the Company is highly speculative given the nature of the Company's business.

The Company's success will depend on many factors, including some which may be beyond its control or which cannot be accounted for at this time, such as the market's acceptance of the products of its investee companies, the emergence of potential competitors, and changes in economic conditions. For the reasons discussed in this section and elsewhere in this AIF, it is possible that the Company may not generate revenues or profits in the foreseeable future or at all.

***Limited History of Operating Revenue and Cash Flow***

The future performance of the business may be constrained by factors such as, among others: success of the Company's corporate strategy, economic downturns; technological and regulatory changes; the cash flows generated by operations, investment activities and financing activities; and the level of taxation, particularly corporate profits and withholding taxes. If the Company is unable to generate sufficient cash from operations, the Company may be required to incur indebtedness, raise funds in a public or private equity or debt offering, or sell some or all of its assets. There can be no assurance that any such financing will be available on satisfactory terms or that it will be sufficient.

The Company may be subject to limitations on the repatriation of earnings in each of the countries where the Company, including its investee companies, do business. In particular, there may be significant withholding taxes applicable to the repatriation of funds from foreign countries to Canada. There can be no assurance that changes in regulations, including tax treaties, in and among the relevant countries where the Company or its investee companies do business will not take place, and if such changes occur, they may adversely impact the Company's ability to receive sufficient cash payments from its subsidiaries.

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***Insufficient Cash Flow and Funds in Reserve***

The Company's cash flow and funds in reserve may not be sufficient to fund its ongoing activities at all times and from time to time and it may require additional financing in order to carry out its activities. In addition, the Company may incur major unanticipated liabilities or expenses. Although the Company has been successful in the past in financing its activities, there can be no assurance that the Company will be able to obtain additional financing on commercially acceptable terms. The ability of the Company to arrange such financing in the future will depend in part upon the prevailing capital market conditions as well as the business performance of the Company. There is risk that if the economy and banking industry experienced unexpected and/or prolonged deterioration, the Company's access to additional financing may be affected. This may be further complicated by the limited market liquidity for shares of smaller companies such as the Company, restricting access to some institutional investors. Due to uncertainty in the capital markets, the Company may from time to time have restricted access to capital and increased borrowing costs. To the extent that external sources of capital become limited, unavailable, or available on onerous terms, the Company's ability to make capital investments and maintain existing assets may be impaired, and its assets, liabilities, business, financial condition, results of operations and prospects may be affected materially and adversely as a result.

The Company, along with all other companies, may face reduced cash flow and restricted access to capital if the global economic situation deteriorates. A prolonged period of adverse market conditions may impede the Company's ability to grow and complete additional acquisitions, if desired. In addition, a prolonged period of adverse market conditions may impede the Company's ability to service any of its loans or arrange alternative financing when the existing loans become due. In each case, the Company's business, financial condition, results of operations and prospects would be adversely affected.

***Cash Flow, Revenue and Liquidity***

The Company's revenue and cash flow is generated primarily from fees paid in connection with managing and operating Validators across various Blockchain networks, the staking of the Company's SOL, financing activities, and proceeds from the disposition of investments. The availability of these sources of income and the amounts generated from these sources depend upon various factors, many of which are outside of the Company's direct control. The Company's liquidity and operating results may be adversely affected if its access to the capital markets is hindered, whether as a result of a downturn in the market conditions generally or to matters specific to us, if the value of our investments decline, resulting in losses upon disposition, and if rates provided by counterparties for staking and lending decrease.

***Dependence on Management Personnel***

The Company is dependent upon the efforts, skill and business contacts of key members of management, the Board, employees and consultants for among other things, the information and deal flow they generate during the normal course of their activities and the synergies that exist amongst their various fields of expertise and knowledge. Accordingly, the Company's success may depend upon the continued service of these individuals who are not obligated to remain consultants to the Company. The loss of the services of any of these individuals could have a material adverse effect on the Company's revenues, net income and cash flows and could harm its ability to maintain or grow existing assets and raise additional funds in the future.

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***Risks related to Compliance and Risk Management***

The Company's compliance and risk management programs may not be effective and may result in outcomes that could materially and adversely affect the Company's reputation, financial condition and operating results, among other things.

The Company's ability to comply with applicable laws and rules is largely dependent on the establishment and maintenance of compliance, review and reporting systems, as well as the ability to attract and retain qualified compliance and other risk management personnel. The Company cannot provide any assurance that its compliance policies and procedures will always be effective or that the Company will always be successful in monitoring or evaluating its risks. In the case of alleged non-compliance with applicable laws or regulations, the Company could be subject to investigations and judicial or administrative proceedings that may result in substantial penalties or civil lawsuits, including by customers, for damages, restitution or other remedies, which could be significant. Any of these outcomes, individually or together, may among other things, materially and adversely affect the Company's reputation, financial condition, trading execution, and asset value and the value of any investment in the Company.

***Operational Risks***

Operational risks, such as misconduct and errors of employees or entities with which the Company does business, are difficult to detect and deter and could cause material reputational and financial harm to the Company. The Company's employees and agents could engage in misconduct, which may include conducting and concealing unauthorized activities or improper use or unauthorized disclosure of confidential information. It is not always possible to deter misconduct by employees or others, and the precautions that the Company takes to prevent and detect this activity may not be effective in all cases.

***Conflicts of Interest may Arise***

Certain current or future directors and officers of the Company and its subsidiaries may be shareholders, directors and officers of other companies that may operate in the same sectors as the Company. Such associations may give rise to conflicts of interest from time to time. The directors and officers of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interest that they may have in any project or opportunity of the Company. If a conflict of interest arises at a meeting of the Board, any director in such conflict is required under the applicable corporate laws to disclose his or her interest and to abstain from voting on such matter.

***Legal Proceedings***

The Company may, from time to time in the future, become subject to legal proceedings, claims, litigation and government investigations or inquiries, which could be expensive, lengthy, and disruptive to normal business operations. In addition, the outcome of any legal proceedings, claims, litigation, investigations or inquiries may be difficult to predict and could have a material adverse effect on the Company's business, operating results, or financial condition.

***Service on Foreign Directors and Officers***

The Company is a corporation formed under the laws of Ontario, Canada; however some of the Company's directors and officers are located outside of Canada.

It may be difficult for investors in other jurisdictions to effect service of process within their jurisdiction upon those directors who are not residents of their jurisdiction or to enforce against them judgments of their jurisdiction's courts based upon civil liability under their securities laws. There is doubt as to the enforceability in Canada against the Company or against any of its non-United States directors, in original actions or in actions for enforcement of judgments of United States courts of liabilities based solely upon the United States federal securities laws or securities laws of any state within the United States.

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Similarly, it may be difficult for investors in Canada to effect service of process within Canada upon those directors, officers and experts who are located outside of Canada, or to enforce against them judgments of the Canadian courts based upon civil liability under Canadian securities laws. There is doubt as to the enforceability in the United States against any of the Company's non-Canadian directors, in original actions or in actions for enforcement of judgments of Canadian courts of liabilities based solely upon Canadian law.

**Risks Relating to the Common Shares**

***Market Price of Common Shares may Experience Volatility***

The market price of the Common Shares has been volatile in the past and may continue to be volatile. The market price is, and could be, subject to wide fluctuations due to a number of factors, including actual or anticipated fluctuations in the Company's results of operations, changes in estimates of its future results of operations by management or securities analysts, market rumours, investments or divestments by the Company or its competitors and general industry changes.

Many of the factors that could affect the market price of the Common Shares are outside of the Company's control. Broad market fluctuations, as well as economic conditions generally, may adversely affect the market price of the Common Shares. The stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may negatively impact the market price of the Common Shares.

***Capital Management***

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and Blockchain companies. The Board does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity. To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there is sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

***Shareholders' Interest in the Company may be Diluted in the Future***

If the Company raises additional funding by issuing additional equity securities, or securities convertible into equity, such financing may substantially dilute the interests of shareholders.

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***The Company has Never Paid Dividends and may not do so in the Foreseeable Future***

The Company has never paid cash dividends on its Common Shares. Currently, the Company intends to retain its future earnings, if any, to fund the development and growth of its business, and does not anticipate paying any cash dividends on its Common Shares in the near future. As a result, shareholders will have to rely on capital appreciation, if any, to earn a return on investment in any Common Shares in the foreseeable future. See "*Dividends*".

**DIVIDENDS AND DISTRIBUTIONS**

The Company has not paid any dividends since its incorporation. Any determination to pay any future dividends will be at the discretion of the Board and will be made based on the Company's financial condition and other factors deemed relevant by the Board. There are currently no restrictions on the ability of the Company to pay dividends except as set out under the OBCA.

**DESCRIPTION OF SHARE CAPITAL**

The Company is authorized to issue an unlimited number of Common Shares without par value. The holders of Common Shares are entitled to dividends, subject to the rights of holders of any other class of shares of the Company, if, as and when declared by the Board. The holders of Common Shares are also entitled to one vote per Common Share at meetings of the shareholders of the Company and, subject to the rights of holders of any other class of shares of the Company, to share, on a *pro rata* basis with the other holders of Common Shares, the net assets of the Company, upon liquidation, dissolution or winding up of the Company. The Common Shares are not subject to call or assessment nor do they carry any pre-emptive or conversion rights. There are no provisions attached to such shares for redemption, purchase for cancellation, surrender or sinking or purchase funds.

As of the date hereof, 161,323,741 Common Shares are issued and outstanding.

As of April 28, 2025, the Company also has 7,737,191 Options, 16,035,000 Warrants, 30,000 debentures and 1,113,669 restricted share units issued and outstanding. See the notes to the Company's audited financial statements for the year ended September 30, 2024 for additional information regarding the Company's convertible securities.

**MARKET FOR SECURITIES**

**Trading Price and Volume**

The Company's Common Shares are publicly listed on the CSE under the symbol "HODL" and under the symbol "CYFRF" on the OTCQX Market.

The following table sets forth, on a monthly basis, the reported high and low sale prices (which are not necessarily closing prices) and the aggregate volume of trading of the Common Shares on the CSE during the financial year ended September 30, 2024.

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| | | | |
|:---|:---|:---|:---|
| **Date** | **High**<br>**($)** | **Low**<br>**($)** | **Volume** |
| October 2023 | 0.10 | 0.07 | 1255123 |
| November 2023 | 0.11 | 0.07 | 1734693 |

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| | | | |
|:---|:---|:---|:---|
| **Date** | **High**<br>**($)** | **Low**<br>**($)** | **Volume** |
| December 2023 | 0.13 | 0.09 | 2076184 |
| January 2024 | 0.15 | 0.10 | 2666402 |
| February 2024 | 0.15 | 0.10 | 3409814 |
| March 2024 | 0.15 | 0.11 | 4029952 |
| April 2024 | 0.13 | 0.11 | 2582202 |
| May 2024 | 0.14 | 0.11 | 2615768 |
| June 2024 | 0.15 | 0.11 | 4628219 |
| July 2024 | 0.19 | 0.11 | 2845396 |
| August 2024 | 0.18 | 0.14 | 1827771 |
| September 2024 | 0.28 | 0.15 | 5290817 |

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**Prior Sales**

During the financial year ended September 30, 2024 with respect to each class of securities of the Company that is outstanding as of the date of this AIF and not listed or quoted on a marketplace, the Company issued the following securities:

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| | | | |
|:---|:---|:---|:---|
| **Date of Issuance** | **Security** | **Number of Securities**<br>**Issued** | **Exercise Price Per**<br>**Security**<br>**($)** |
| July 4, 2024 | Options | 1500000 | $0.115 |
| July 4, 2024 | Options | 1500000 | $0.115 |
| July 8, 2024 | Options | 2000000 | $0.115 |
| August 7, 2024 | Options | 6900000 | $0.1555 |
| September 11, 2024 | Options | 49971 | $0.145 |
| September 11, 2024 | Options | 100000 | $0.145 |

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**ESCROWED SECURITIES**

To the Company's knowledge, no securities of the Company are held in escrow or are subject to a contractual restriction.

**DIRECTORS AND OFFICERS**

The following table sets forth for each director and executive officer of the Company as at the date of this AIF and as at September 30, 2024, each such individual's name, province or state and country of residence, position(s) held with the Company, principal occupation(s) for the last five years, if currently a director, period(s) during which such individual has served as a director of the Company, and the number and percentage of issued and outstanding Common Shares beneficially owned, or controlled or directed, directly or indirectly, by such individual (for avoidance of doubt, excluding any convertible securities in the capital of the Company held by such individual). The statements as to principal occupation(s) for the last five years of, and the number and percentage of Common Shares beneficially owned, or controlled or directed, directly or indirectly, by, the directors and executive officers of the Company are in each instance based upon information furnished by the individuals concerned. All directors of the Company hold office until the next annual meeting of shareholders of the Company or until their successors are elected or appointed.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name, Place of**<br>**Residence and**<br>**Position(s)** | &nbsp;&nbsp;**Principal Occupation(s) for the**<br>**Last Five Years** | &nbsp;&nbsp;**Director/**<br>**Officer**<br>**Since** | &nbsp;&nbsp;**Number of**<br>**Common**<br>**Shares**<br>**Beneficially**<br>**Owned or**<br>**Controlled**<br>**or Directed**<br>(1) | &nbsp;&nbsp;**Percentage**<br>**of Issued**<br>**and**<br>**Outstanding**<br>**Common**<br>**Shares** |
| &nbsp;&nbsp;Leah Wald<sup>(2)</sup><br>Tennessee, USA<br>*Chief Executive*<br>*Officer, Director* | &nbsp;&nbsp;Chief Executive Officer of Sol Strategies (2024 - Current); Chief Executive Officer of Valkyrie<br>Investments Inc. (2020 - 2024); VP Portfolio<br>Management at Exponential Group (2020); Partner<br>& EVP at Lucid Investment Strategies, LLC (2017 - 2020). | &nbsp;&nbsp;September<br>2, 2021 | &nbsp;&nbsp;674400<sup>(6)</sup> | &nbsp;&nbsp;0.42% |
| &nbsp;&nbsp;Antanas (Tony) Guoga<br>Kaunas, Lithuania<br>*Chairman of the*<br>*Board of Directors* | &nbsp;&nbsp;Chief Executive Officer of Sol Strategies (2021 - 2022); Member of the Seimas of the Republic of Lithuania, the legislative branch of government in Lithuania (2020 -<br>2021); Member of European Parliament (2014 - 2019). | &nbsp;&nbsp;August 11,<br>2020 | &nbsp;&nbsp;31856268<br>(7) (8) | &nbsp;&nbsp;19.75% |
| &nbsp;&nbsp;Doug Harris<br>Toronto, Ontario,<br>Canada<br>*Chief Financial Officer* | &nbsp;&nbsp;Chief Financial Officer of the Company (2021 - Current); Chief Financial Officer of Tony G Co-Investment Holdings Ltd. (2018 - Current); Chief Financial Officer<br>of Grid Metals Corp. (2021 - 2025); Chief Financial Officer of Zoglo's Food Corp (2022 - 2023);<br>Chief Financial Officer of Tripsitter Clinic Ltd. (2021 - 2023) | &nbsp;&nbsp;April<br>2021<sup>(5)</sup> | &nbsp;&nbsp;240175<sup>(9)</sup> | &nbsp;&nbsp;0.15% |
| &nbsp;&nbsp;Jon Matonis<sup>(4)</sup><br>London, United Kingdom<br>*Chief Economist,*<br>*Director* | &nbsp;&nbsp;Chief Economist of Sol Strategies; Businessman<br>and monetary economist. | &nbsp;&nbsp;April 9,<br>2020 | &nbsp;&nbsp;850000<sup>(10)</sup> | &nbsp;&nbsp;0.53% |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name, Place of**<br>**Residence and**<br>**Position(s)** | &nbsp;&nbsp;**Principal Occupation(s) for the**<br>**Last Five Years** | &nbsp;&nbsp;**Director/**<br>**Officer**<br>**Since** | &nbsp;&nbsp;**Number of**<br>**Common**<br>**Shares**<br>**Beneficially**<br>**Owned or**<br>**Controlled**<br>**or Directed**<br>(1) | &nbsp;&nbsp;**Percentage**<br>**of Issued**<br>**and**<br>**Outstanding**<br>**Common**<br>**Shares** |
| &nbsp;&nbsp;Michael Hubbard<br>Rotorua, New<br>Zealand<br>*Chief Strategy*<br>*Officer* | &nbsp;&nbsp;Chief Executive Officer of Laine New Zealand (2024<br>- Current); Founder and Managing Director of Laine South Africa (2014 - Current) | &nbsp;&nbsp;March 10,<br>2025 | &nbsp;&nbsp;5000000<sup>(11)</sup> | &nbsp;&nbsp;3.10% |
| &nbsp;&nbsp;Mohammed Adham<br>London, United<br>Kingdom<sup>(3)</sup><br>*Chief Investment*<br>*Officer, Director* | &nbsp;&nbsp;Chief Investment Officer and Director of the Company; Chief Executive Officer of Bitaccess Inc. | &nbsp;&nbsp;N/A | &nbsp;&nbsp;2536724 | &nbsp;&nbsp;1.57% |
| &nbsp;&nbsp;Max Kaplan<br>Tampa Bay, USA<br>*Chief Technology*<br>*Officer* | &nbsp;&nbsp;Founder of Orangefin Ventures (2023 - 2024); Senior Vice President of Engineering of<br>Edgevana Inc. (2023 - 2024); Engineer at Kraken Digital Asset Exchange (2017 - 2023) | &nbsp;&nbsp;December 31, 2024 | &nbsp;&nbsp;503621 | &nbsp;&nbsp;0.31% |
| &nbsp;&nbsp;Rubsun Ho<sup>(2)</sup><br>Toronto, Ontario,<br>Canada<br>*Director* | &nbsp;&nbsp;Chief Executive Officer of Crowdmatrix Inc. (2015 - Current).; Head of Trading Compliance of Kognitiv<br>Corporation (2015 - Current); Co-founder and director of Caravel Law PC (2016 - Current). | &nbsp;&nbsp;June 16,<br>2021 | &nbsp;&nbsp;8100<sup>(12)</sup> | &nbsp;&nbsp;0.01% |
| &nbsp;&nbsp;Ungad Chadda<br>Toronto, Ontario,<br>Canada<br>*Director* | &nbsp;&nbsp;Chief Executive Officer of Global Uranium Corp. (2024 - Current); Chief Executive Officer of Urban Infrastructure Group (2024 - Current); President, Capital<br>Formation at TMX Group (2016 - Current) | &nbsp;&nbsp;September<br>11, 2024 | &nbsp;&nbsp;2910<sup>(13)</sup> | &nbsp;&nbsp;0.00% |
| &nbsp;&nbsp;Luis Berruga<br>New York, USA<br>*Director* | &nbsp;&nbsp;Founder and Managing Partner of LBS Capital (2024 -<br>Current); Chief Executive Officer of Global X ETFs (2018 - 2023) | &nbsp;&nbsp;March 3,<br>2025 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;0% |

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<u>Notes:</u>

(1) The information as to the nature of Common Shares beneficially owned, or controlled or directed, directly or indirectly, by the directors and executive officers, not being within our knowledge, has been furnished by such directors and officers or has been extracted from the register of shareholdings maintained by our transfer agent or from insider reports filed by the individuals and available at www.sedi.ca.

(2) Member of the Audit Committee and member of the Compensation Committee.

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(3) Mr. Adham resigned from the Company on February 3, 2025. The number common shares held by Mr. Adham as disclosed in this AIF are as at February 3, 2025.

(4) Member of the Audit Committee.

(5) Mr. Harris joined the Company as a part-time Chief Financial Officer in April 2021. On January 1, 2025, he joined the Company on a full-time basis.

(6) In addition to the Common Shares listed in the table above, Ms. Wald holds 1,968,191 Options.

(7) 2,060,520 of the Common Shares are registered in the name of "UAB NTSG".

(8) In addition to the Common Shares listed in the table above, Mr. Guoga holds 135,500 Options.

(9) In addition to the Common Shares listed above, Mr. Harris holds 1,700,000 Options.

(10) In addition to the Common Shares listed in the table above, Mr. Matonis holds 1,279,500 Options.

(11) In addition, Mr. Hubbard holds 500,000 Options and 4,500,000 Warrants.

(12) In addition to the Common Shares listed in the table above, Mr. Ho holds 1,029,500 Options.

(13) Mr. Chadda holds 581,442 Options and 50,000 Restricted Share Units.

As of the date hereof, the directors and executive officers of the Company, as a group, beneficially owned, or controlled or directed, directly or indirectly, 41,672,198 Common Shares, representing 25.83% of the total issued and outstanding Common Shares.

**Cease Trade Orders, Bankruptcies, Penalties or Sanctions**

***Corporate Cease Trade Orders or Bankruptcies***

Other than as set out below, no director or executive officer of the Company is, as at the date hereof, or has been, within the ten years before the date hereof, a director, chief executive officer or chief financial officer of any company (including the Company) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) was subject to a cease trade or similar order, or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days and that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) was subject to a cease trade or similar order, or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as a director, chief executive officer or chief financial officer.

Antanas Guoga, the Company's Executive Chairman and Director also services as a Director of Tony G. On June 6, 2022, the Ontario Securities Commission issued a cease trade order against Tony G for failure to file its annual financial statements and related management's discussion and analysis and certificates for Tony G's fiscal year ended January 31, 2022. The cease trade order was revoked on July 21, 2023.

Douglas Harris, the Company's Chief Financial Officer also serves as Chief Financial Officer of Tony G. While Mr. Harris was serving as Chief Financial Officer of Tony G, on July 22, 2020, the Ontario Securities Commission issued a cease trade order against Tony G for failure to file its annual financial statements and related management's discussion and analysis and certificates for Tony G's fiscal year ended January 31, 2020 and for its three-month period ended April 30, 2020. Tony G subsequently made the required filings and the cease trade order was revoked by the Ontario Securities Commission on September 9, 2020.

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***Personal Bankruptcies***

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is, as at the date hereof, or has been, within the ten years before the date hereof, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has, within the ten years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

***Penalties and Sanctions***

As at the date hereof, no director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

***Conflicts of Interest***

The directors and officers of the Company are required by law to act honestly and in good faith with a view to the best interests of the Company and to disclose any interests that they may have in any project or opportunity of the Company. If a conflict of interest arises at a meeting of the Board, any director in a conflict is required to disclose his interest and abstain from voting on such matter in accordance with the OBCA. In appropriate cases, the Company will establish a special committee of independent non-executive directors to review a matter in which one or more directors or officers may have a conflict.

To the best of the Company's knowledge, and other than as disclosed herein, there are no known existing or potential material conflicts of interest between the Company or a subsidiary of the Company and any director or officer of the Company or a subsidiary of the Company, except that certain of the directors and officers serve as directors and officers of other public or private companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director or officer of such other companies.

**PROMOTER**

No person or company has within the two most recently completed financial years, or is during the current financial year, been a promoter of the Company or a subsidiary thereof.

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**LEGAL PROCEEDINGS AND REGULATORY ACTIONS**

The Company has not been since, and was not during, the financial year ended September 30, 2024 a party to any legal proceedings, nor has any of its property been since nor was any of its property during the financial year ended September 30, 2024 subject of any legal proceedings.

There have been no penalties or sanctions imposed against the Company by a court relating to securities legislation or by any securities regulatory authority since or during the financial year ended September 30, 2024, or any other penalties or sanctions imposed by a court or regulatory body against the Company that would likely be considered important to a reasonable investor in making an investment decision, and the Company has not entered into any settlement agreements with a court relating to securities legislation or with a securities regulatory authority since or during the financial year ended September 30, 2024.

**INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**

Except as described elsewhere in this AIF, none of the directors or executive officers of the Company, nor any person or company that beneficially owns, or controls or directs, directly or indirectly, more than 10% of the issued and outstanding Common Shares, nor any associate or affiliate of the foregoing persons or companies, has or has had any material interest, direct or indirect, in any transaction within the three most recently completed financial years or during the current financial year that has materially affected or is reasonably expected to materially affect the Company.

**TRANSFER AGENT AND REGISTRAR**

The transfer agent and registrar for the Common Shares is TSX Trust, at its offices in Toronto, Ontario located at 100 Adelaide Street West, Suite 301, Toronto, Ontario, M5H 4H1.

**MATERIAL CONTRACTS**

The Company is party to the following material contracts as defined in National Instrument 51-102 - *Continuous Disclosure Obligations*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities purchase agreements between the Company and ATW dated April 23, 2025. A copy of the agreement will be available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Asset purchase agreement between the Company and Michael Hubbard dated March 7, 2025. A copy of the agreement is available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities purchase agreements between the Company and each of ParaFi Venture Fund II LP, ParaFi Quantitative Strategies LP, and ParaFi Digital Opportunities Fund LP dated January 8, 2025. A copy of the agreements are available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Asset purchase agreement between the Company and Orangefin Ventures LLC dated December 20, 2024. A copy of the agreement is available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Asset purchase agreement between the Company and Ben Hawkins dated November 14, 2024. A copy of the agreement is available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Credit facility between the Company and Antony Guoga dated October 22, 2024 and the amending agreement dated January 6, 2025. A copy of these agreements are available under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>

**INTERESTS OF EXPERTS**

The Company's external auditor during the financial year ended September 30, 2024 was Kingston Ross Pasnak LLP. Kingston Ross Pasnak LLP has advised the Company that it is independent of the Company in accordance with the Rules of Professional Conduct of the Institute of Chartered Accountants of Ontario. As at the date of this AIF, the Company's auditor is Davidson & Company LLP, an independent registered public accounting firm, located at 1200 - 609 Granville Street, PO Box 10372, Pacific Centre, Vancouver, British Columbia, Canada V7Y 1G6. As of the date of this AIF, Davidson & Company LLP is independent with respect to the Company within the meaning of the Rules of Professional Conduct of the Chartered Professional Accountants of British Columbia and under all relevant U.S. professional and regulatory standards, including PCAOB Rule 3520.

**ADDITIONAL INFORMATION**

Additional information relating to the Company may be found under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of the Company's securities and securities authorized for issuance under equity compensation plans, is contained in the Company's management information circular dated July 2, 2024 prepared in connection with the Company's annual and special meeting of shareholders held on July 30, 2024.

Additional financial information is provided in the Company's annual consolidated financial statements and management's discussion and analysis for the financial year ended September 30, 2024 both of which are available under the Company's profile on SEDAR+ at <u>www.sedarplus.ca</u>

**AUDIT COMMITTEE DISCLOSURE**

The Audit Committee is responsible for monitoring the Company's systems and procedures for financial reporting and internal control, reviewing certain public disclosure documents, including the Company's annual audited financial statements and unaudited quarterly financial statements, and monitoring the performance and independence of the Company's external auditors. The Audit Committee is also responsible for reviewing with management the Company's risk management policies, the timeliness and accuracy of the Company's regulatory filings and all related party transactions as well as the development of policies and procedures related to such transactions.

**Audit Committee Charter**

The Audit Committee Charter sets out its responsibilities and authority, procedures governing meetings, qualifications for membership and particulars governing the role of the Chair. A copy of the Audit Committee Charter is attached hereto as Appendix "A".

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**Composition of the Audit Committee**

National Instrument 52-110 - *Audit Committees* ("**NI 52-110**") provides that a member of an audit committee is "independent" if the member has no direct or indirect "material relationship" with the Company, which, for the purposes of NI 52-110 means a relationship which could, in the view of the Board, be reasonably expected to interfere with the exercise of the member's independent judgment. The current members of the Audit Committee are Ungad Chadda (Chair), Rubsun Ho and Luis Berruga. Each current member of the Audit Committee is "independent" within the meaning of NI 52-110,.

NI 52-110 provides that an individual is "financially literate" if he or she has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company's financial statements. All of the members of the Audit Committee are "financially literate" as that term is defined. The following sets out the Audit Committee members' education and experience that is relevant to the performance of his responsibilities as an audit committee member.

**Relevant Education and Experience**

The following is a description of the education and experience of each current member of the Audit Committee that is relevant to the performance of his responsibilities as an Audit Committee member and, in particular, any education or experience that would provide the member with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an understanding of the accounting principles used by the Company to prepare its financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to assess the general application of such accounting principles in connection with the accounting for estimates, accruals and reserves;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the Company's financial statements, or experience actively supervising one or more persons engaged in such activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an understanding of internal controls and procedures for financial reporting.

***Rubsun Ho, Director*:** Rubsun Ho has been a lawyer and entrepreneur for 24 years and has successfully exited two prior businesses. He was a co-founder of Cognition LLP, an alternative, virtual law firm, which sold half of its assets in 2016 to Axiom Global Inc., the world's largest alternative legal services provider. He currently remains a partner in Caravel Law PC (the rebranded remaining half of Cognition), which has grown to over 90 lawyers across three provinces. He was also the co-founder and CEO of Crowdmatrix Inc., a registered Exempt Market Dealer and one of the first investment crowdfunding platforms in Canada. Crowdmatrix was sold to Kognitiv Corporation in 2019, where Rubsun remains as Head of Trading Compliance. Before Cognition, Rubsun was VP of Business Development at Wysdom Inc., where he helped raise USD$57 million in financing for the wireless Internet startup. He started his legal career as a securities law associate in the Toronto and New York offices of Stikeman Elliott. Rubsun has a Bachelor of Commerce from McGill University and a Bachelor of Laws from the University of Toronto.

***Ungad Chadda*, *Director***: Ungad Chadda is a highly experienced capital markets executive, known for his leadership at the Toronto Stock Exchange (TSX), where he oversaw listings and drove market growth. He brings expertise in financial markets, corporate governance, M&A, and regulatory strategy. Ungad earned his Chartered Professional Accountant (CPA) while working at Ernst and Young LLP, has a B.COM from McMaster University, and is a graduate of the Rotman School of Management, Director Education Program and a member of the Institute of Corporate Directors, ICD.D.

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***Luis Berruga, Director***: Luis Berruga is an accomplished asset management executive and Founder & Managing Partner of LBS Capital, a boutique investment firm specializing in wealth management and ETFs. Previously, as CEO and Chairman of Global X ETFs, he grew assets under management from $10B to $40B in the US and $80B globally over five years. Luis has held positions at Jefferies' Financial Institutions Group and Morgan Stanley, advising boards on strategic transactions. He currently serves as an independent director for Sol Strategies, KraneShares, and Tidal Financial Group. Luis holds an MBA from Northwestern University's Kellogg School of Management, a degree in Telecommunications Engineering from Universidad Politecnica de Madrid, and corporate governance certification from Wharton.

**Reliance on Certain Exemptions**

The Company is a "venture issuer" for the purposes of NI 52-110. Accordingly, the Company is relying upon the exemption in section 6.1 of NI 52-110 providing that the Company is exempt from the application of Part 3 (Composition of the Audit Committee) and Part 5 (Reporting Obligations) of NI 52-110.

**Audit Committee Oversight**

At no time since the Company's formation, has any recommendation of the audit committee to nominate or compensate an external auditor not been adopted by the Board.

**Pre-Approval Policies and Procedures**

The Audit Committee has adopted specific policies and procedures for the engagement of non-audit services, as described in the Audit Committee Charter,

**External Auditor Service Fees**

The following fees were incurred by the Company for the financial years ended September 30, 2024 and

2023 for professional services rendered to the Company:

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| | | |
|:---|:---|:---|
| **Fees** | **2024** | **2023** |
| Audit Fees<sup>(1)</sup> | 149160 | 137000 |
| Audit-Related Fees<sup>(2)</sup> | Nil | Nil |
| Tax Fees<sup>(3)</sup> | 24521 | 5000 |
| All Other Fees Other Fees<sup>(4)</sup> | Nil | Nil |

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<u>Notes:</u>

(1) Audit Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for audit services. Included in these aggregate fees are the amounts for the audit of the annual consolidated financial statements.

(2) Audit-Related Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for assurance and related services by the current or former auditor, as applicable, that are reasonably related to the performance of the audit or review of the Company's financial statements and are not Audit Fees, including for consultations on accounting developments and the accounting for potential corporate transactions.

(3) Tax Fees are the aggregate fees billed or accrued, as the case may be, for the applicable period in each of the last two fiscal years for professional services rendered, as applicable, for tax compliance, tax advice, and tax planning.

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(4) All Other Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for products and services provided by the current or former auditor, as applicable, other than Audit Fees, Audit-Related Fees or Tax Fees.

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**APPENDIX "A"**

**AUDIT COMMITTEE CHARTER**

**SOL STRATEGIES INC.**

**CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS**

**1. Purpose of this Charter**

The Audit Committee (the "**Committee**") is a standing committee of the board of directors (the "**Board**") of Sol Strategies Inc. (the "**Company**"). The Committee is appointed by the Board to assist the Board in fulfilling its oversight responsibilities relating to financial accounting, reporting and internal controls for the Company. This Charter shall govern the operations of the Committee.

The Committee's primary duties and responsibilities are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conduct such reviews and discussions with management and the external auditors relating to the audit and financial reporting as are deemed appropriate by the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) assess the integrity of internal controls and financial reporting procedures of the Company and ensure implementation of such controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) review the interim and annual financial statements and management's discussion and analysis of the Company's financial position and operating results and in the case of the annual financial statements and related management's discussion and analysis, report thereon to the Board for approval of same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) select and monitor the independence and performance of the Company's external auditors, including attending at private meetings with the external auditors and reviewing and approving all renewals or dismissals of the external auditors and their remuneration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) provide oversight of all disclosure relating to, and information derived from, financial statements and management's discussion and analysis.

The Committee has the authority to conduct any investigation appropriate to its responsibilities, and it may request the external auditors, as well as any officer of the Company, or outside counsel for the Company, to attend a meeting of the Committee or to meet with any members of, or advisors to, the Committee. The Committee shall have unrestricted access to the books and records of the Company and has the authority to retain, at the expense of the Company, special legal, accounting, or other consultants or experts to assist in the performance of the Committee's duties.

The Committee shall review and assess the adequacy of this Charter annually and submit any proposed revisions to the Board for approval.

In fulfilling its responsibilities, the Committee will carry out the specific duties set out in Part 4 of this Charter.

**2. Authority of the Audit Committee**

The Committee shall have the authority to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) engage independent counsel and other advisors as it determines necessary to carry out its duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) set and pay the compensation for advisors employed by the Committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) communicate directly with the external auditors of the Company.

**3. Composition and Meetings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee shall be composed of three directors as shall be designated by the Board from time to time. Unless a Chair is elected by the Board, the members of the Committee shall designate from amongst themselves by majority vote of the full Committee a member who shall serve as Chair. The position description and responsibilities of the Chair are set out in Schedule "A" attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee and its membership shall meet all applicable legal, regulatory and listing requirements, including, without limitation, those of the Ontario Securities Commission ("**OSC**"), any exchange upon which the securities of the Company are listed, the *Business Corporations Act* (Ontario) and all applicable securities regulatory authorities. Two of the three members of the Committee shall be "independent" and "financially literate". An "independent" director is a director who has no direct or indirect material relationship with the Company. A "material relationship" is a relationship which, in the view of the Board, could be reasonably expected to interfere with the exercise of the director's independent judgement or a relationship deemed to be a material relationship pursuant to Sections 1.4 and 1.5 of National Instrument 52-110 - *Audit Committees*, as set out in Schedule "B" hereto. A "financially literate" director is a director who has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the accounting issues that can be reasonably expected to be raised in the Company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each member of the Committee shall serve at the pleasure of the Board. The Committee shall report to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Committee shall meet at least quarterly, at the discretion of the Chair or a majority of its members, as circumstances dictate or as may be required by applicable legal or listing requirements. A minimum of two and at least 50% of the members of the Committee present, either in person or by telephone, shall constitute a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If within one hour of the time appointed for a meeting of the Committee, a quorum is not present, the meeting shall stand adjourned to the same hour on the next business day following the date of such meeting at the same place. If at the adjourned meeting a quorum is not present within one hour of the time appointed for such adjourned meeting, such meeting shall stand adjourned to the same hour on the second business day following the date of such meeting at the same place. If at the second adjourned meeting a quorum is not present, the quorum for the adjourned meeting shall consist of the members then present (a "**Reduced Quorum**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If, and whenever a vacancy shall exist, the remaining members of the Committee may exercise all of its powers and responsibilities so long as a quorum remains in office or a Reduced Quorum is present in respect of a specific Committee meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The time and place at which meetings of the Committee shall be held, and procedures at such meetings, shall be determined from time to time by the Committee. A meeting of the Committee may be called by letter, telephone, facsimile, email or other means of communication, by giving at least 48 hours' notice, provided that no notice of a meeting shall be necessary if all of the members are present either in person or by means of conference telephone or if those absent have waived notice or otherwise signified their consent to the holding of such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Any member of the Committee may participate in the meeting of the Committee by means of conference telephone or other communication equipment, and the member participating in a meeting pursuant to this paragraph shall be deemed, for the purposes hereof, to be present in person at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee shall keep minutes of its meetings. The Committee may, from time to time, appoint any person who need not be a member, to act as a secretary at any meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Any director of the Company may attend meetings of the Committee, and the Committee may invite such officers and employees of the Company and its subsidiaries as the Committee may see fit, from time to time, to attend at meetings of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Any matters to be determined by the Committee shall be decided by a majority of votes cast at a meeting of the Committee called for such purpose. Actions of the Committee may be taken by an instrument or instruments in writing signed by all of the members of the Committee, and such actions shall be effective as though they had been decided by a majority of votes cast at a meeting of the Committee called for such purpose. The Committee shall report its determinations to the Board at the next scheduled meeting of the Board, or earlier as the Committee deems necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Committee members will be appointed annually at the first meeting of the Board following the annual general meeting of shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Board may at any time amend or rescind any of the provisions hereof, or cancel them entirely, with or without substitution.

**4. Responsibilities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial Accounting and Reporting Process and Internal Controls

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee shall review the annual audited and interim financial statements and related management's discussion and analysis before the Company publicly discloses this information to satisfy itself that the financial statements are presented in accordance with applicable accounting principles and in the case of the annual audited financial statements and related management's discussion and analysis, report thereon and recommend to the Board whether or not same should be approved prior to their being filed with the appropriate regulatory authorities. With respect to the annual audited financial statements, the Committee shall discuss significant issues regarding accounting principles, practices, and judgments of management with management and the external auditors as and when the Committee deems it appropriate to do so. The Committee shall consider whether the Company's financial disclosures are complete, accurate, prepared in accordance with International Financial Reporting Standards and fairly present the financial position of the Company. The Committee shall also satisfy itself that, in the case of the annual financial statements, the audit function has been effectively carried out by the auditors and, in the case of the interim financial statements, that the review function has been effectively carried out.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee shall review and assess the adequacy and effectiveness of the Company's systems of internal control and management information systems through discussion with management and the external auditor to ensure that the Company maintains appropriate systems, is able to assess the pertinent risks of the Company and that the risk of a material misstatement in the financial disclosures can be detected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Committee shall be satisfied that adequate procedures are in place for the review of the Company's public disclosure of financial information extracted or derived from the Company's financial statements, management's discussion and analysis and annual and interim financial press releases, and periodically assess the adequacy of these procedures in consultation with any disclosure committee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Committee shall review any press releases containing disclosure regarding financial information that are required to be reviewed by the Committee under any applicable laws or otherwise pursuant to the policies of the Company (including before the Company publicly discloses this information).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Committee shall meet no less than annually with the external auditors and the Chief Financial Officer or, in the absence of a Chief Financial Officer, with the officer of the Company in charge of financial matters, to review accounting practices, internal controls and such other matters as the Committee, Chief Financial Officer or, in the absence of a Chief Financial Officer, the officer of the Company in charge of financial matters, deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Committee shall inquire of management and the external auditors about significant financial and internal control risks or exposures and assess the steps management has taken to minimize such risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Committee shall review the post-audit or management letter, if any, containing the recommendations of the external auditors and management's response and subsequent follow-up to any identified weaknesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Committee shall be responsible for monitoring compliance with the Company's Code of Conduct and Business Ethics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Committee shall periodically review and make recommendations regarding the Code of Business Conduct and Ethics adopted by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Committee is responsible for creating a confidential and anonymous process whereby persons can report any concerns regarding matters which the complainant views to be illegal, unethical or contrary to the Company's policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) The Committee shall periodically review and make recommendations regarding the Whistleblower Policy and any other policies adopted by the Board;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) The Committee shall follow procedures established as set out in the Company's Whistleblower Policy, for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the receipt, retention, and treatment of complaints received by the Company regarding accounting, internal accounting controls, auditing matters or violations to the Company's Code of Business Conduct and Ethics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the submission by employees, consultants, contractors, directors or officers of the Company, on a confidential and anonymous basis, of concerns regarding questionable accounting, auditing matters or violations to the Company's Code of Business Conduct and Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) The Committee shall ensure that management establishes and maintains an appropriate budget process, which shall include the preparation and delivery of periodic reports from the Chief Financial Officer to the Committee comparing actual spending to the budget. The budget shall include assumptions regarding economic parameters that are well supported and shall take into account the risks facing the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) The Committee shall have the authority to adopt such policies and procedures as it deems appropriate to operate effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) External Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee shall recommend to the Board the external auditors to be nominated for the purpose of preparing or issuing an auditors' report or performing other audit, review or attest services for the Company, shall set the compensation for the external auditors, provide oversight of the external auditors and shall ensure that the external auditors report directly to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee shall ensure that procedures are in place to assess the audit activities of the external auditors and the internal audit functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The pre-approval of the Committee shall be required as further set out in Schedule "C" prior to the undertaking of any non-audit services not prohibited by law to be provided by the external auditors in accordance with this Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Committee shall monitor and assess the relationship between management and the external auditors and monitor, support and assure the independence and objectivity of the external auditors and attempt to resolve disagreements between management and the external auditors regarding financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Committee shall review the external auditors' audit plan, including the scope, procedures and timing of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Committee shall review the results of the annual audit with the external auditors, including matters related to the conduct of the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Committee shall obtain timely reports from the external auditors describing critical accounting policies and practices, alternative treatments of information within International Financial Reporting Standards that were discussed with management, their ramifications, and the external auditors' preferred treatment and material written communications between the Company and the external auditors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Committee shall review fees paid by the Company to the external auditors and other professionals in respect of audit and non-audit services on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Committee shall review and approve the Company's hiring policies regarding partners, employees and former partners and employees of the present and former auditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Committee shall have the authority to engage the external auditors to perform a review of the interim financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other Responsibilities

The Committee shall perform any other activities consistent with this Charter and governing law, as the Committee or the Board deems necessary or appropriate.

**5. Performance Evaluation**

The Committee shall conduct an annual evaluation of the performance of its duties under this Charter and shall present the results of the evaluation to the Board.

**6. Access to Information**

The Committee shall be granted unrestricted access to all information regarding the Company that is necessary or desirable to fulfill its duties and all directors, officers and employees of the Company will be directed to cooperate as requested by members of the Committee.

**7. No Rights Created**

This Charter is a broad policy statement and is intended to be part of the Committee's flexible governance framework. While the Charter should comply with all applicable laws, regulations and listing requirements and the Company's articles and by-laws, this Charter does not create any legally binding obligations on the Committee, the Board or the Company. The terms of this Charter are not intended to give rise to civil liability on the part of the Company or its directors or officers to shareholders, security holders, customers, suppliers, competitors, employees or other persons, or to any other liability whatsoever on their part.

The Board may, from time to time, and to the extent permitted by applicable law, permit departures from the terms of this Charter, either prospectively or retrospectively.

**8. Oversight Function**

It is not the duty of the Committee to plan or conduct audits or to determine that the Company's financial statements are complete and accurate or comply with applicable accounting standards, as applicable, and other applicable requirements. These are the responsibilities of management and the external auditors. The Committee, however, will consider whether these annual financial statements are complete, consistent with information known to the members of the Committee, and reflect appropriate accounting principles.

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The role of the Committee is to provide broad oversight of the financial, risk and control related activities of the Company and are specifically not accountable or responsible for the day to day operation or performance of such activities. Although the designation of a member of the Committee as having accounting or related financial expertise for disclosure purposes is based that individual's education and experience, which that individual will bring to bear in carrying out his or her duties on the Committee, such designation does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Committee and Board in the absence of such designation. Rather, the role of a member of the Committee who is identified as having accounting or related financial expertise, like the role of all members of the Committee, is to oversee the process, not to certify or guarantee the internal or external audit of the Company's financial information or public disclosure.

**9. Approval**

Approved by the Board on October 2, 2024.

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**SCHEDULE A**

**SOL STRATEGIES INC.**

**POSITION DESCRIPTION FOR THE CHAIR OF THE AUDIT COMMITTEE**

**1. PURPOSE**

The Chair of the Committee shall be an independent director who is selected by the Board or designated by a majority vote of the Committee to act as the leader of the Committee in assisting the Board in fulfilling its financial reporting and control responsibilities to the shareholders of the Company.

**2. WHO MAY BE CHAIR**

The Chair will be selected from amongst the members of the Committee. For greater certainty, the Chair shall be "independent" and "financially literate" as defined in National Instrument 52-110 - Audit Committees.

The Chair will be selected annually at the first meeting of the Board following the annual general meeting of shareholders or designated by a majority vote of the Committee.

**3. RESPONSIBILITIES**

The following are the primary responsibilities of the Chair:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) chair all meetings of the Committee in a manner that promotes meaningful discussion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) oversee adherence to the Committee's Charter and that the adequacy of the Committee's Charter is reviewed annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provide leadership to the Committee to enhance the Committee's effectiveness, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) act as liaison and maintain communication with the Board to coordinate input from directors and to optimize the effectiveness of the Committee. This includes ensuring that Committee materials are available to any director upon request and reporting to the Board on all decisions of the Committee at the first meeting of the Board after each Committee meeting and at such other times and in such manner as the Committee considers advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) oversee the Committee's lines of communication with the independent auditors, financial and senior management and the Board for financial and control matters with the goal of achieving open lines of communication and the Committee working as a cohesive team;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) take steps necessary to ensure that the resources available to the Committee are adequate to support its work and to resolve issues in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) take all necessary actions to maintain an independent and objective Committee to monitor the Company's financial reporting process and internal control systems, as well as to monitor the relationship between the Company and the independent auditors to ensure independence;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) oversee the establishment of Committee procedures to assess the audit activities of the independent auditors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) oversee the establishment of Committee procedures to review the Company's public disclosure of financial information and assess the adequacy of such procedures periodically, in consultation with any disclosure committee of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) oversee the establishment of Committee procedures for dealing with complaints received by the Company regarding accounting, internal controls and auditing matters, and for employees to submit confidential anonymous concerns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) manage the Committee, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt procedures so that the Committee can conduct its work effectively and efficiently, including committee structure and composition, scheduling, and management of meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prepare the agenda of the Committee meetings and ensure pre-meeting material is distributed in a timely manner and is appropriate in terms of relevance, efficient format and detail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) ensure Committee meetings are appropriate in terms of frequency, length and content;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obtain a report from the independent auditors on an annual basis, review the report with the Committee and arrange meetings with the auditors and financial management to review the scope of the proposed audit for the current year, its staffing and the audit procedures to be used;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) oversee the Committee's participation in the Company's accounting and financial reporting process and the audits of its financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) ensure that the auditors' report directly to the Committee, as representatives of the Company's shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) annually review with the Committee its own performance, report annually to the Board on the role of the Committee and the effectiveness of the Committee in contributing to the effectiveness of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) together with the Board, oversee the structure, composition and membership of, and activities delegated to, the Committee from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) oversee the Committee's work plan for the year and monitor progress at each meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) ensure Committee minutes are reviewed and approved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) perform such other duties as may be delegated from time to time to the Chair of the Committee by the Board.

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**SCHEDULE B**

**SOL STRATEGIES INC.**

**NATIONAL INSTRUMENT 52-110 AUDIT COMMITTEES ("NI 52-110")**

**Section 1.4 - Meaning of Independence**

1. An audit committee member is independent if he or she has no direct or indirect material relationship with the issuer.

2. For the purposes of subsection (1), a "material relationship" is a relationship which could, in the view of the issuer's board of directors, be reasonably expected to interfere with the exercise of a member's independent judgment.

3. Despite subsection (2), the following individuals are considered to have a material relationship with an issuer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an individual who is, or has been within the last three years, an employee or executive officer of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an individual whose immediate family member is, or has been within the last three years, an executive officer of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an individual who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a partner of a firm that is the issuer's internal or external auditor,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is an employee of that firm, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was within the last three years a partner or employee of that firm and personally worked on the issuer's audit within that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an individual whose spouse, minor child or stepchild, or child or stepchild who shares a home with the individual:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a partner of a firm that is the issuer's internal or external auditor,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is an employee of that firm and participates in its audit, assurance or tax compliance (but not tax planning) practice, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was within the last three years a partner or employee of that firm and personally worked on the issuer's audit within that time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an individual who, or whose immediate family member, is or has been within the last three years, an executive officer of an entity if any of the issuer's current executive officers serves or served at that same time on the entity's compensation committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) an individual who received, or whose immediate family member who is employed as an executive officer of the issuer received, more than $75,000 in direct compensation from the issuer during any 12 month period within the last three years.

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4. Despite subsection (3), an individual will not be considered to have a material relationship with the issuer solely because

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he or she had a relationship identified in subsection (3) if that relationship ended before March 30, 2004; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he or she had a relationship identified in subsection (3) by virtue of subsection (8) if that relationship ended before June 30, 2005.

5. For the purposes of clauses (3)(c) and (3)(d), a partner does not include a fixed income partner whose interest in the firm that is the internal or external auditor is limited to the receipt of fixed amounts of compensation (including deferred compensation) for prior service with that firm if the compensation is not contingent in any way on continued service.

6. For the purposes of clause (3)(f), direct compensation does not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) remuneration for acting as a member of the board of directors or of any board committee of the issuer, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the receipt of fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the issuer if the compensation is not contingent in any way on continued service.

7. Despite subsection (3), an individual will not be considered to have a material relationship with the issuer solely because the individual or his or her immediate family member

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has previously acted as an interim chief executive officer of the issuer, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acts, or has previously acted, as a chair or vice-chair of the board of directors or of any board committee of the issuer on a part-time basis.

8. For the purpose of section 1.4, an issuer includes a subsidiary entity of the issuer and a parent of the issuer.

**Section 1.5 - Additional Independence Requirements for Audit Committee Members**

1. Despite any determination made under section 1.4 of NI 52-110, an individual who

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accepts, directly or indirectly, any consulting, advisory or other compensatory fee from the issuer or any subsidiary entity of the issuer, other than as remuneration for acting in his or her capacity as a member of the board of directors or any board committee, or as a part- time chair or vice-chair of the board or any board committee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is an affiliated entity of the issuer or any of its subsidiary entities, is considered to have a material relationship with the issuer.

2. For the purposes of subsection (1), the indirect acceptance by an individual of any consulting, advisory or other compensatory fee includes acceptance of a fee by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an individual's spouse, minor child or stepchild, or a child or stepchild who shares the individual's home; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an entity in which such individual is a partner, member, an officer such as a managing director occupying a comparable position or executive officer, or occupies a similar position (except limited partners, non-managing members and those occupying similar positions who, in each case, have no active role in providing services to the entity) and which provides accounting, consulting, legal, investment banking or financial advisory services to the issuer or any subsidiary entity of the issuer.

3. For the purposes of subsection (1), compensatory fees do not include the receipt of fixed amounts of compensation under a retirement plan (including deferred compensation) for prior service with the issuer if the compensation is not contingent in any way on continued service.

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**SCHEDULE C**

**SOL STRATEGIES INC.**

**PROCEDURES FOR APPROVAL OF NON-AUDIT SERVICES**

1. The Company's external auditors shall be prohibited from performing for the Company the following categories of non-audit services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) bookkeeping or other services related to the Company's accounting records or financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appraisal or valuation services, fairness opinion or contributions-in-kind reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) actuarial services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) internal audit outsourcing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) management functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) human resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) broker or dealer, investment adviser or investment banking services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) legal services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any other service that the Canadian Public Accountability Board or International Accounting Standards Board or other analogous board which may govern the Company's accounting standards, from time to time determines is impermissible.

2. In the event that the Company wishes to retain the services of the Company's external auditors for tax compliance, tax advice or tax planning, the Chief Financial Officer of the Company shall consult with the Chair of the Committee, who shall have the authority, subject to confirmation that such services will not compromise the independence of the Company's external auditors, to approve or disapprove on behalf of the Committee, such non-audit services. All other non-audit services shall be approved or disapproved by the Committee as a whole.

3. The Chief Financial Officer of the Company shall maintain a record of non-audit services approved by the Chair of the Committee or the Committee for each fiscal year and provide a report to the Committee no less frequently than on a quarterly basis.

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## Exhibit 99.104

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**Form 52-109F1 - AIF**

**Certification of annual filings**

**in connection with voluntarily filed AIF**

This certificate is being filed on the same date that Sol Strategies Inc. (the "issuer") has voluntarily filed an AIF.

I, Douglas Harris, the Chief Financial Officer of Sol Strategies Inc., certify the following:

1. ***Review:*** I have reviewed the AIF, annual financial statements and annual MD&A, including for greater certainty all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of the issuer for the financial year ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

Date: April 28, 2025

<u>*"Douglas Harris"*</u> <br> Douglas Harris <br> Chief Financial Officer

&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52- 109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.105

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**Form 52-109F1 - AIF**

**Certification of annual filings**

**in connection with voluntarily filed AIF**

This certificate is being filed on the same date that Sol Strategies Inc. (the "issuer") has voluntarily filed an AIF.

I, Leah Wald, the Chief Executive Officer of Sol Strategies Inc., certify the following:

1. ***Review:*** I have reviewed the AIF, annual financial statements and annual MD&A, including for greater certainty all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of the issuer for the financial year ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

Date: April 28, 2025

<u>*"Leah Wald"*</u> <br> Leah Wald <br> Chief Executive Officer

**<u>NOTE TO READER</u>**

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of

i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52- 109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

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## Exhibit 99.106

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**Sol Strategies to Announce Second Quarter<br>2025 Financial Results on May 30, 2025**

Toronto, Ontario--(Newsfile Corp. - April 30, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced it will release its financial results for the second quarter ending March 31, 2025 on Friday, May 30, 2025. The Company will host a webcast and conference call the following Monday.

Event: SOL Strategies, Inc. Second Quarter 2025 Financial Results Webcast and Conference Call

Webcast Date: Monday, June 2, 2025, at 4:30 PM EST

Live Call: (800) 245-3047 (U.S.) or (203) 518-9765 (International), Conference ID: SOLQ225

Webcast Link: <u>https://event.on24.com/wcc/r/4950255/BFBCE094E7089059DF9190FE5FD69DC4</u>

CEO Leah Wald, CFO Doug Harris, and CTO Max Kaplan will host the live webcast and conference call to review the results and answer questions. Investors, analysts, and stakeholders are encouraged to attend the call to hear more about the Company's recent milestones and growth outlook.

A replay will be available shortly after the event at <u>https://solstrategies.io/investors/</u>. While you're there, we encourage you to sign up for our investor distribution list to receive future updates directly.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact:<br>John Ragozzino, CFA<br><u>solstrategies@icrinc.com</u><br> 203.682.8284

Media Contact: <u>solstrategies@scrib3.co</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking statements in this news release include references to the Company's growth outlook and recent milestones that may be discussed during the webcast and conference call. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-106x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/250336</u>

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## Exhibit 99.107

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**SOL Strategies Completes Initial $20 Million**

**Closing of USD $500 Million Convertible Note**

**Facility**

**Capital to be Exclusively Allocated to SOL Purchases and Validator Growth**

Toronto, Ontario--(Newsfile Corp. - May 1, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced the closing of the initial USD $20 million closing of its up to USD $500 million convertible note facility (the "Facility"), as previously disclosed in the Company's April 23, 2025 news <u>release</u>, and receipt of an initial USD $20 million tranche of proceeds. The initial USD $20 million of proceeds represent the first portion of the up to USD $500 million facility with ATW Partners, with proceeds being deployed to purchase SOL tokens to be staked on the Company's validators.

Pursuant to the Facility, the Company today issued convertible notes ("Notes") in the aggregate principal amount of USD $20 million as its first tranche (the "Initial Closing"), with additional capacity of up to USD $480 million available in subsequent drawdowns, subject to certain conditions. In this novel structure, interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies.

The Notes will be convertible into common shares of the Company at the prevailing market price on the date prior to conversion, subject to the terms and conditions of the Notes and the Facility.

The Notes, and the underlying common shares, are to be issued outside of Canada pursuant Ontario Securities Commission Rule 72-503 - Distributions Outside Canada and accordingly the common shares issuable under conversion of the Notes will not be subject to any statutory hold period under applicable Canadian securities laws.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is serving as placement agent to SOL Strategies. A finder's fee of 4% of the gross proceeds from the Initial Closing was paid to the placement agent in cash.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact: John Ragozzino, CFA <u>solstrategies@icrinc.com</u> 203.682.8284

Media Contact: <u>solstrategies@scrib3.co</u>

------

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto; the deployment of proceeds; the Company's plans for validator growth and expansion, and the anticipated benefits to the Company's validator operations and SOL purchases. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

The Company cautions that future tranches beyond the initial USD $20 million are subject to certain conditions and there can be no guarantee these conditions will be met or that the full USD $500 million facility will be utilized. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

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![](exhibit99-107x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/250451</u>

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## Exhibit 99.108

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**SOL Strategies Announces April 2025**

**Corporate Update Highlighting $500 Million**

**Facility and Expanded Institutional**

**Partnerships**

Toronto, Ontario--(Newsfile Corp. - May 1, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today provided its monthly corporate update for April 2025 and announced the date for its upcoming quarterly financial results.

**April 2025 Corporate Highlights**

SOL Strategies achieved several major milestones in April, including securing a landmark facility of up to $500 million to accelerate SOL token acquisitions, expanding key validator partnerships, launching new infrastructure and consumer products, and growing institutional exposure through our <u>inclusion in ETF portfolios</u>. The Company continues to strengthen its leadership position as the premier Solana-focused infrastructure platform.

**Management Commentary**

Leah Wald, CEO of SOL Strategies, stated:

"Our progress in April reflects the momentum behind our strategy. From securing a landmark facility of up to $500 million to expanding key validator relationships and deepening technical integrations, we're building a foundation for long-term leadership in institutional Solana staking."

**Corporate Developments**

**SOL Strategies Secures Up to USD $500 Million Convertible Note Facility to Expand SOL Holdings**

On April 23, 2025, SOL Strategies <u>announced</u> a landmark convertible note facility of up to $500 million with an affiliate of ATW Partners, representing the first digital asset financing structure exclusively dedicated to acquiring and staking Solana (SOL) tokens. Under the agreement, SOL Strategies will issue convertible notes in the aggregate principal amount of $20 million as an initial tranche on or about May 1, 2025, with additional capacity of up to $480 million available in follow-on drawdowns, subject to certain conditions.

Proceeds will be used to purchase SOL tokens, which will be staked on validators operated by SOL Strategies, with staking yield shared with investors. This structure is expected to strengthen the Company's validator business and generate immediate yield.

**Annual Information Form (AIF) Filing**

SOL Strategies' latest Annual Information Form (AIF) has been filed and is now available on SEDAR+.

You can view it <u>here</u>.

**Business Developments**

**SOL Strategies Launches White-Label Validator Services with Pudgy Penguins as First Partner**

------

On April 15, 2025, SOL Strategies <u>announced</u> a partnership with Pudgy Penguins to launch a dedicated Solana validator supporting the PENGU ecosystem. The launch of the PENGU validator via SOL Strategies' white-label validator program demonstrates demand for blockchain infrastructure solutions aligned with consumer Web3 brands.

Importantly, it also marks a strategic expansion of SOL Strategies' business into white-label validator services, which is expected to open new enterprise revenue opportunities and reinforcing the Company's role as a key infrastructure partner within the Solana ecosystem.

For more on SOL Strategies manages multiple validators, read Max Kaplan's blog post: <u>Managing Multiple Solana Validators in an Enterprise Environment</u>

**Orangefin Solana Staking App Launch**

On April 25, 2025, SOL Strategies launched Orangefin, the first mobile application dedicated exclusively to Solana staking, now available on <u>iOS</u> and <u>Google Play</u> stores. Orangefin delivers a streamlined staking experience for both retail and institutional users, reinforcing SOL Strategies' commitment to accessible, secure blockchain services.

For more on the development journey, read Max Kaplan's blog post:

<u>Building a Solana Mobile App: The Pains of the App Store Duopoly</u>

**SOL Strategies Selected as Validator Partner for BitGo**

On April 30, 2025, SOL Strategies <u>announced</u> that it was selected as a Solana validator partner for BitGo's $100B+ institutional custody platform, enabling BitGo's global clients-including hedge funds, exchanges, and family offices-to stake Solana through SOL Strategies' enterprise-grade infrastructure. The Company believes this partnership further validates SOL Strategies' ISO 27001-certified validator performance and reinforces its leadership role in providing secure, high-uptime Solana infrastructure for institutional clients.

**Growing U.S. Institutional Ownership Through ETFs**

Institutional adoption of SOL Strategies' stock continued to grow, with allocations across prominent ETF and index products, including the First Trust SkyBridge Crypto Industry and Digital Economy ETF (<u>CRPT</u>) and Invesco's Alerian Galaxy Crypto Economy ETF (<u>SATO</u>) and Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (<u>BLKC</u>), as well as direct investments from institutional investors such as <u>Boston Private Wealth LLC</u>.

The Company believes this inclusion reflects growing institutional recognition of SOL Strategies' expanding role within the Solana ecosystem.

**Solana Holdings**

As of April 30, 2025, SOL Strategies held 269,258 SOL, with 268,671 SOL actively staked to the Company's validators.

**Validator Performance Metrics**

* Total SOL Staked: 3,036,462 SOL (excluding white-label partnership validators) (approximately CAD $610 million / USD $443 million)

* Total Validators Operated: 4 (excluding white-label partnership validators)

*A validator is a specialized server node on the Solana blockchain that processes transactions, verifies blocks, and maintains network consensus. Operating validators requires significant technical expertise and capital investment and is core to blockchain infrastructure activities.*

------

*The CAD amounts above are based on prices and FX rates quoted by Coinbase as of 4:15 PM ET on April 30, 2025.*

**Technical Performance and Developments**

* Uptime: 99.995% across all validators

* Maximum APY Delivered to Delegators: 8.59% (Orangefin)

* Network Average APY: 8.2%

(Source: <u>Stakewiz</u>, data sourced from stake account reward entries for epochs ending April 2025.)

**Market Note**

In April 2025, discussions around Solana's monetary policy remained active following the March vote on <u>SIMD-228</u>, a proposal to reduce the network's inflation rate from 4.5% to 0.87%. Although 61.4% of staked SOL voted in favor--just short of the required two-thirds supermajority--the vote highlighted a divide between larger validators advocating for long-term sustainability and smaller validators concerned about revenue compression and decentralization risks.

In parallel, <u>Firedancer</u>-Jump Crypto's high-performance validator client for Solana-continued development, with early testing demonstrating major throughput improvements (CoinMarketCap coverage). SOL Strategies is currently implementing Firedancer on two of their validators and monitors Firedancer's progress, aligning with its long-term focus on scaling blockchain infrastructure and validator excellence.

Solana's price averaged approximately <u>$154.82 USD</u> during April, reflecting broader digital asset market volatility and ongoing debates around network economics. Despite market fluctuations, institutional interest in blockchain infrastructure and staking solutions <u>continues to strengthen.</u> Additionally, <u>a report from EY</u> highlights that 83% of institutional investors intend to increase their allocations to digital assets in the coming year.

**Media & Industry Engagement**

In April 2025, SOL Strategies expanded its media presence and technical thought leadership across top platforms:

* Leah Wald, CEO, appeared live on <u>Bloomberg Crypto TV</u> (19:10-22:11) to discuss Solana's ecosystem growth, the institutional adoption of staking, and SOL Strategies' leadership in blockchain infrastructure.

* Max Kaplan, CTO, was featured on the <u>ALPHA 59 podcast</u>, discussing how SOL Strategies is capturing value in the emerging era of internet capital markets.

* Following the Pudgy Penguins <u>announcement</u>, SOL Strategies was mentioned in outlets like <u>CryptoNews</u> and <u>Altcoin Buzz</u>, resulting in a larger appearance by Leah Wald on the <u>CryptoNews</u> podcast. Here, Leah also shared her perspective on SOL Strategies' evolution, covering the Company's transition beyond being seen as a SOL ETF proxy and highlighting its broader strategy across acquisitions, validator expansion, and real-world blockchain infrastructure.

* Following the $500 million convertible note <u>announcement</u>, SOL Strategies was mentioned in 40 pieces of unique media coverage, including outlets such as <u>CoinDesk</u>, <u>CNBC Crypto World</u> (0:36), <u>Cointelegraph</u>, and <u>Decrypt</u>.

* Leah Wald appeared on <u>Cryptonews Spotlight Podcast</u> for an in-depth discussion on how SOL Strategies is much more than a Solana proxy investment.

* Leah Wald and Max Kaplan guest lectured at Vanderbilt University's law school, providing insights into Solana validator infrastructure, the future of decentralized finance, and the practical applications of blockchain technology.

SOL Strategies published new technical research on its blog, including **<u>Protecting the Firedancer UI</u>** **<u>in an Enterprise Environment</u>**, demonstrating the Company's commitment to advancing best practices for high-performance Solana infrastructure.

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**Second Quarter 2025 Financial Results**

SOL Strategies will release its financial results for the second quarter of fiscal year 2025 on Friday, May 30, 2025. CEO Leah Wald, CFO Doug Harris, and CTO Max Kaplan will host a webcast and conference call the following Monday, after market close.

**Event:** SOL Strategies, Inc. Second Quarter 2025 Financial Results Webcast and Conference Call

**Webcast Date:** Monday, June 2, 2025, at 4:30 PM EST

**Live Call:** (800) 245-3047 (U.S.) or (203) 518-9765 (International), Conference ID: SOLQ225

**Webcast Link:** **<u>https://event.on24.com/wcc/r/4950255/BFBCE094E7089059DF9190FE5FD69DC4</u>**

Investors, analysts, and stakeholders are encouraged to attend the call to hear more about the Company's recent milestones and growth outlook.

A replay will be available shortly after the event at <u>https://solstrategies.io/investors/</u>. While you're there, we encourage you to sign up for our investor distribution list to receive future updates directly.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides exposure to strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact: John Ragozzino, CFA <u>solstrategies@icrinc.com</u> 203.682.8284

Media Contact: <u>solstrategies@scrib3.co</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

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Forward-looking statements in this news release include statements regarding the completion of the convertible note offering and its intended impact on the Company; the intended impacts of the Pudgy Penguins partnership, the Solana Staking app launch and the BitGo partnership,. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Additional information on forward-looking statements and other factors that could affect the Company's operations and financial results are included in documents filed with Canadian securities regulatory authorities and may be accessed through the Company's profile on the SEDAR+ website (<u>www.sedarplus.ca</u>).

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-108x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/250374</u>

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## Exhibit 99.109

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**EXECUTION COPY**

**SECURITIES PURCHASE AGREEMENT**

**THIS SECURITIES PURCHASE AGREEMENT** (the "**Agreement"**), dated as of April 23, 2025, is by and among Sol Strategies, Inc., a company incorporated under the laws of the province of Ontario, Canada with offices located at 217 Queen Street West, Suite 401, Toronto, Ontario, M5V 0R2, Canada (the "Company"), and each of the investors listed on the Schedule of Buyers attached hereto as <u>Schedule A</u> (individually, a "**Buyer**" and collectively, the "**Buyers**").

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company and each Buyer is executing and delivering this Agreement in reliance upon: (i) in the United States, the exemption from securities registration requirements afforded by Rule 506(b) of Regulation D ("**Regulation D**") as promulgated by the SEC under the Securities Act of 1933, as amended (the "**1933 Act**") and/or Section 4(a)(2) of the 1933 Act and similar exemptions from the applicable securities laws of any state of the United States (as defined in Regulation S ("**Regulation S**") under the 1933 Act), and (ii) in Canada, (A) with respect to the Initial Closing (as defined below) and any Additional Closings prior to or on September 30, 2025, an exemption from the prospectus requirements of applicable Canadian Securities Laws (as defined below) afforded by Section 2.3 of National Instrument 45-106 *Prospectus Exemptions* ("**NI 45-106**") of the Canadian Securities Administrators and/or Ontario Securities Commission Rule 72-503 *Distributions Outside Canada* ("**Rule 72-503**"), as applicable, and (B) with respect to any Additional Closing after September 30, 2025, a prospectus supplement (each, an "**Additional Closing Prospectus Supplement**") to a final short form base shelf prospectus, which base shelf prospectus (the "**Base Shelf Prospectus**") will be required to be filed by the Company, in connection with any Additional Closings, with the Canadian Securities Administrators pursuant to applicable Canadian Securities Laws (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company has authorized a new series of convertible notes of the Company, in the aggregate original principal amount of $500,000,000, substantially in the form attached hereto as **<u>Exhibit A</u>** (the "**Notes**"), which Notes shall be convertible into Common Shares (as defined below) (the Common Shares issuable pursuant to the terms of the Notes, including, without limitation, upon conversion or otherwise, collectively, the "**Conversion Shares**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, at the Initial Closing (as defined below) (i) such aggregate principal amount of Notes (the "**Initial Notes**", and the Common Shares issuable pursuant to the terms of the Initial Notes, including, without limitation, upon conversion or otherwise, collectively,, the "**Initial Conversion Shares**") as set forth opposite such Buyer's name in column (3) on the Schedule of Buyers (which aggregate principal amount for all Buyers shall be $20,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Subject to the terms and conditions set forth in this Agreement, the Company may require each Buyer to participate (or a Buyer may elect to participate, as applicable) in one or more Additional Closings (as defined below) for the purchase by such Buyer, and the sale by the Company, of (i) one or more Notes (the "**Additional Notes**", and the Common Shares issuable pursuant to the terms of the Additional Notes, including, without limitation, upon conversion or otherwise, collectively, the "**Additional Conversion Shares**") with an aggregate original principal amount for all Additional Closings not to exceed the maximum aggregate principal amount set forth opposite such Buyer's name in column (4) on the Schedule of Buyers (which aggregate principal amount for all Buyers for all Additional Closings shall not exceed $480,000,000) and (ii) if applicable, such portion of the Commitment Amount (as defined below) that the Company elects in writing (which may be an e-mail), on or prior to the second (2<sup>nd</sup>) Trading Day prior to such applicable Additional Closing, to settle in Common Shares (the "**Commitment Shares**") at a price per Common Share equal to the Conversion Price (as defined in the Notes) in effect as of such Additional Closing Date (as defined below) (such aggregate number of Commitment Shares to be issued to such applicable Buyer at such Additional Closing, equal to the quotient of (x) such portion of the Commitment Amount to be settled in Commitment Shares, divided by (y) the Conversion Price in effect as of such Additional Closing Date, each, a "**Commitment Share Amount**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The Notes, the Conversion Shares and the Commitment Shares are collectively referred to herein as the "**Securities**."

**<u>AGREEMENT</u>**

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

**1. PURCHASE AND SALE OF SECURITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase of Securities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Purchase of Initial Notes</u>. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(a) and 7(a) below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Initial Closing Date (as defined below) such aggregate principal amount of Initial Notes as is set forth opposite such Buyer's name in column (3) on the Schedule of Buyers (the "**Initial Closing**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Purchase of Additional Notes and Commitment Shares</u>. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 1(a)(i), 6(b) and 7(b) below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase from the Company on the applicable Additional Closing Date (as defined below), (i) an Additional Note in the original principal amount as is set forth in such applicable Additional Closing Notice (as defined below) (which, with respect to the Initial Additional Closing, shall be such aggregate principal amount of Additional Notes not to exceed the amount set forth opposite such Buyer's name in column (4) on the Schedule of Buyers) and (ii) if applicable, such Commitment Share Amount of Commitment Shares to be issued to such Buyer on such Additional Closing Date (each, an "**Additional Closing**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Closings</u>. Each Initial Closing and Additional Closing (collectively, the "**Closings**") of the purchase of Notes and Commitment Shares by the Buyers shall occur at the offices of Kelley Drye & Warren LLP, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 or through the electronic exchange of documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Initial Closing</u>. The date and time of the Initial Closing (the "**Initial Closing Date**") shall be 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to the Initial Closing set forth in Sections 6(a) and 7(a) below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer). As used herein "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; <u>provided</u>, <u>however</u>, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Additional Closing</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject to the satisfaction (or waiver) of the conditions set forth in this Section 1(b)(ii) and Sections 6(b) and 7(b) below (the "**Additional Closing Conditions**"), the date and time of the Additional Closing shall be 10:00 a.m., New York time on the later of (x) the proposed closing date as set forth in the applicable Additional Closing Notice (as defined below) and (y) with respect to any Additional Closing Date on or prior to September 30, 2025, the fifth (5<sup>th</sup>) Trading Day (as defined in the Notes) after the Responding Party (as defined below) shall have returned a duly executed Additional Closing Notice to the Initiating Party (as defined below) or, with respect to any Additional Closing Date after September 30, 2025, the date of filing of the Additional Closing Prospectus Supplement (or such other date as is mutually agreed to by the Company and such applicable Buyer(s)) (each, an "**Additional Closing Date**," and the Initial Closing Date and the Additional Closing Date, each, a "**Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Additional Closing Mechanics</u>. At any time after the Initial Closing Date, subject to the satisfaction (or waiver) of the Additional Closing Conditions, the Company or any Buyer (as applicable, the "**Initiating Party**") may deliver one or more written notices (each, an "**Additional Closing Notice**", and the date thereof each, an **"Additional Closing Notice Date**") to the other party (the "**Responding Party**"), (A) requesting an Additional Closing of such aggregate principal amount of the Additional Notes to be purchased by such applicable Buyer as set forth in such Additional Closing Notice (which, together with the aggregate principal amount of any Additional Notes issued at any prior Additional Closings, shall not exceed the maximum aggregate principal amount as set forth opposite such Buyer's name in column (4) on the Schedule of Buyers), and (B) setting forth the proposed Additional Closing Date. If a Responding Party fails to execute and return such Additional Closing Notice to the Initiating Party within five (5) Business Days of receipt, such Additional Closing Notice shall be automatically cancelled. For the avoidance of doubt, no Additional Closing shall occur hereunder unless both the Company and each such applicable Buyer shall have duly executed and delivered an Additional Closing Notice with respect thereto and no party shall be under any obligation to execute and deliver any Additional Closing Notice. Notwithstanding anything herein to the contrary, no Additional Closings shall occur hereunder from and after the date that is the three (3) year anniversary of the Initial Closing Date (or (x) such later date as the Company and the Required Holders (as defined below) shall mutually agree in writing or (y) if earlier, any date either party hereto elects in writing to the other party to terminate all remaining rights hereto to effect any further Additional Closings) (the "**Additional Closing Expiration Date**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Purchase Price</u>. The aggregate purchase price for the Initial Notes to be purchased by each Buyer (the "**Initial Purchase Price**") shall be the amount set forth opposite such Buyer's name in column (5) on the Schedule of Buyers. The aggregate purchase price for the Additional Notes and, if any, Commitment Shares to be purchased by each Buyer at any given Additional Closing (each, an "**Additional Purchase Price**", and together with the Initial Purchase Price, each, a "**Purchase Price**") shall be $1,000 for each $1,000 of aggregate principal amount of Notes to be issued in such Additional Closing (which, together with the Additional Purchase Price of each prior Additional Closings, shall not exceed the aggregate amount set forth opposite such Buyer's name in column (6) on the Schedule of Buyers).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Matters.</u> Each Buyer and the Company agree that the Additional Notes and any Commitment Shares constitute an "investment unit" for purposes of Section 1273(c)(2) of the Internal Revenue Code of 1986, as amended (the "**Code**"). The Buyers and the Company mutually agree that, if applicable, the allocation of the issue price of such investment unit between the Additional Notes and the Commitment Shares in accordance with Section 1273(c)(2) of the Code and Treasury Regulation Section 1.1273-2(h) shall be as mutually agreed between the Buyers and the Company, and neither the Buyers nor the Company shall take any position inconsistent with such allocation in any tax return or in any judicial or administrative proceeding in respect of taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Form of Payment</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Initial Closing</u>. On the Initial Closing Date, (i) each Buyer shall pay its respective Initial Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(i)) to the Company for the Initial Notes to be issued and sold to such Buyer at the Initial Closing, by wire transfer of immediately available funds in accordance with the Initial Flow of Funds Letter (as defined below) (and/or delivery of SOL, as applicable) and (ii) the Company shall deliver to each Buyer an Initial Note in the aggregate original principal amount as is opposite such Buyer's name in column (3) of the Schedule of Buyers, duly executed on behalf of the Company and registered in the name of such Buyer or its designee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Additional Closing</u>. On each Additional Closing Date, (i) each Buyer shall pay its respective applicable Additional Purchase Price for such Additional Closing (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(i)) to the Company for the Additional Notes and, if applicable, Commitment Shares, to be issued and sold to such Buyer at such Additional Closing, by wire transfer of immediately available funds (and/or delivery of SOL, as applicable) n accordance with the applicable Additional Flow of Funds Letter (as defined below) and (ii) the Company shall (i) deliver to each Buyer an Additional Note in the aggregate original principal amount as is set forth in the Additional Closing Notice to be issued to such Buyer, duly executed on behalf of the Company and registered in the name of such Buyer or its designee and (ii) if applicable, cause TSX Trust Company or any subsequent transfer agent, the "**Transfer Agent**") to credit such Commitment Share Amount of Commitment Shares to which such Buyer is entitled pursuant to such Additional Closing to the Buyer's or its designee's balance account with CDS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Notes Outside this Agreement</u>. The Company will not, without the prior written consent of the Required Holders, issue any Notes (other than to the Buyers as contemplated hereby or as otherwise required pursuant to the terms of the Notes as in effect as of the date of issuance thereof). For the avoidance of doubt, without limiting any term or condition of the Notes, nothing in this Section 1(f) shall otherwise limit the issuance by the Company of any other Indebtedness to any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Group</u>. Other than affiliates of such Buyer who are also Buyers under this Agreement, such Buyer is not under common control with or acting in concert with any other Buyer and is not part of a "group" for purposes of the 1934 Act.

**2. BUYER'S REPRESENTATIONS AND WARRANTIES.**

Each Buyer, severally and not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of each Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization; Authority</u>. Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder. Such Buyer was not created, or is not being used, solely to permit purchases of or to hold securities without a prospectus in reliance on a prospectus exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Risk Acknowledgement.</u> Such Buyer has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of the investment in the Company and is able to bear the economic risk of loss of such investment. Such Buyer is aware that there are securities and tax laws applicable to the holding and disposition of the Securities and such Buyer agrees to comply with any applicable laws concerning the purchase, holding and resale of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Public Sale or Distribution</u>. Such Buyer (i) is acquiring its Notes and (ii) upon conversion of its Note will acquire the Conversion Shares issuable upon conversion thereof, in each case, with investment intent as principal for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act or qualified for public distribution or exempted under the securities legislation and regulations of, and the instruments, policies, rules, orders, codes, notices and published interpretation notes of, the securities regulatory authorities of the provinces and territories of Canada (the "**Canadian Securities Laws**"). The investment is not a transaction or series of transactions that is part of a plan or scheme to avoid the prospectus requirements in connection with a distribution to a person or company in Canada, is consistent with the Buyer's investment strategy and is otherwise in compliance with Rule 72-503. Notwithstanding the foregoing, by making the representations herein, such Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption from registration under the 1933 Act. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable securities laws. For purposes of this Agreement, "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, trustee, executor, administrator, or other legal representative, an unincorporated organization, any other entity and any Governmental Entity or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Qualified Institutional Buyer Status</u>. If the Buyer is in the United States or is purchasing for the account or benefit of a U.S. Person, or received an offer of the Notes while in the United States, or is a person that is in the United States at the time the Buyer's buy order was made, (such Buyer, a "**U.S. Buyer**"), such U.S. Buyer is a "qualified institutional buyer" as such term is defined in Rule 144A under the 1933 Act that is also an "accredited investor" as that term is defined in Rule 501(a) of Regulation D (such U.S. Buyer, a "**Qualified Institutional Buyer**") and has properly completed, executed and delivered to the Company this Agreement together with the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u>. Such Buyer is also an "accredited investor" as such term is defined in NI 45-106 and Section 73.3(1) of the *Securities Act* (Ontario), as applicable, and has properly completed, executed and delivered to the Company this Agreement together with the Status Certificate attached hereto as <u>Schedule B</u>, and the acknowledgements, representations, warranties, covenants and information contained herein and therein are true and correct as of the date hereof and will be true and correct as of such Closing Date and if less than a complete copy of this Agreement is delivered to the Company, the Company and its advisors are entitled to assume that the Buyer accepts and agrees to all the terms and conditions of the pages not delivered, unaltered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reliance on Exemptions</u>. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and from the prospectus requirements of applicable Canadian Securities Laws, including NI 45-106 and Rule 72-503, and that the Company is relying in part upon the truth and accuracy of, and such Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Securities. Such Buyer understands and acknowledges that the offer, issuance, sale and delivery of the Securities is conditional upon such sale being exempt from the prospectus requirements of applicable Canadian securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Information</u>. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer's right to rely on the Company's representations and warranties contained herein. Such Buyer understands that its investment in the Securities involves a high degree of risk and such Buyer is solely responsible for obtaining such tax, investment, legal and other professional advice as it considers appropriate in connection with the investment in the Securities. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Transfer or Resale</u>. Such Buyer understands that except as provided in Section 4(g) hereof: (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, or qualified for distribution under a prospectus under any Canadian Securities Laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered or qualified for distribution thereunder, (B) such Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, (C) if such Buyer is a U.S. Buyer then only pursuant to the Restricted Securities Agreements in the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u> (or in accordance with clause (ii) below) or (E) in accordance with applicable Canadian Securities Laws, including NI 45-106 and Rule 72-503, immediately after such Closing Date; (ii) at such time as the resale of the Securities are eligible to be resold by the applicable holder of such Securities in compliance with Rule 144, any resale of such securities by such holder shall be permissible subject to the requirements of Section 5 below and (iii)neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws. Notwithstanding the foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Governmental Review</u>. Such Buyer understands that no United States federal or state agency, no Canadian securities regulatory authority or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Regulation S</u>. Unless the Buyer is a U.S. Buyer and has delivered the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u>, the Buyer (1) is not a "U.S. person" as defined in Regulation 902 of Regulation S, (2) is not purchasing the Securities as the result of any "directed selling efforts" (as defined in Rule 902(c) of Regulation S, and including any press releases made by the Company relating to this proposed offering of the Securities or any report, notification or summary of the same) made in the United States by the Company, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing and (3) the current structure of this transaction and all transactions and activities contemplate hereunder is not a scheme to avoid the registration requirements of the 1933 Act or any applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Residence</u>. Such Buyer is resident, or if not an individual has its head office, in the jurisdiction set forth opposite such Buyer's name on the Schedule of Buyers attached hereto. Such address was not created and is not used solely for the purpose of acquiring the Securities and the Buyer was solicited to purchase the Securities only in such jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>International Jurisdictions</u>. Such Buyer, if resident in a jurisdiction outside of Canada and the United States (an "**International Jurisdiction**") currently has knowledge and experience or has consulted the Buyer's own counsel, accountant or investment advisor, with respect to the investment contemplated hereby and applicable securities laws of the International Jurisdiction in which the Buyer resides which would apply to this subscription. The Buyer is purchasing the Securities in compliance with or pursuant to exemptions from any prospectus, registration or similar requirements under the applicable securities laws of the International Jurisdiction in which the Buyer resides (and the Buyer shall deliver to the Company such further particulars of such applicable securities laws or exemptions and the Buyer's qualifications thereunder as the Company may request), and the purchase and sale of the Securities does not trigger any obligation to prepare and file a prospectus, offering memorandum, registration statement or similar document, or any other report with respect to such purchase and/or any registration or other obligation on the part of the Company. No applicable securities laws of the International Jurisdiction in which the Buyer resides require the Company to make any filings or seek any approvals of any kind whatsoever from any securities commission or regulatory authority of any kind whatsoever in the jurisdiction of residence of the Buyer. The Buyer has satisfied itself as to the full observance of the laws of its jurisdiction in connection with its purchase of the Securities or any use of the Securities, including (A) the legal requirements within its jurisdiction for the purchase of the Securities, (B) any foreign exchange restrictions applicable to such purchase of the Securities, (C) any governmental or other consents that may need to be obtained, and (D) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, exercise, redemption, sale, or transfer of the Securities. The Buyer's own subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Control Person</u>. Such Buyer is not, with respect to the Company or any of its affiliates, a "control person" as such term is defined in Subsection 1(1) of the *Securities Act* (Ontario) and the completion of the transactions contemplated by this Agreement will not create a new "control person" as such term is defined in Subsection 1(1) of the *Securities Act* (Ontario).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Not Acting Jointly or in Concert.</u> Such Buyer is not acting jointly or in concert with any other Buyer or Person for the purpose of the acquisition of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Validity; Enforcement</u>. This Agreement has been duly and validly authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Conflicts</u>. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal, provincial and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Trade Sanctions.</u> Such Buyer is not a person or entity identified in any of the regulations made under the *United Nations Act* (Canada), the *Special Economic Measures Act (Canada), the Freezing Assets of Corrupt Foreign Officials Act (Canada) or the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) (Canada) (collectively, the* "**Trade Sanctions**"). The funds representing the Purchase Price which will be advanced by the Buyer to the Company hereunder will not represent proceeds of crime for the purposes of the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act* (Canada) (the "**PCMLTFA**"), the United Kingdom's *Proceeds of Crime Act 2002* (the "**POCA**") or the *Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act* (the "**PATRIOT Act**")(collectively, the "**AML Laws**", and such Buyer acknowledges that the Company may in the future be required by law to disclose such Buyer's name and other information relating to this Agreement and the Buyer's subscription hereunder, on a confidential basis, pursuant to the PCMLTFA, the POCA, the PATRIOT Act, the *Criminal Code* (Canada), the Trade Sanctions, or otherwise under applicable law. To the best of its knowledge (a) none of the funds to be provided by such Buyer in payment of any applicable Purchase Price (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States, or any other jurisdiction, or (ii) are being tendered on behalf of a Person or entity who has not been identified to such Buyer, and (b) such Buyer shall promptly notify the Company if such Buyer discovers that any of such representations ceases to be true, and to provide the Company with appropriate information in connection therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Indirect Collection of Personal Information</u>. Such Buyer acknowledges that this Agreement and the Schedules, Appendices and Exhibits hereto require such Buyer to provide certain personal information to the Company. Such information is being collected by the Company for the purposes of completing the transactions contemplated by this Agreement, which includes without limitation determining such Buyer's eligibility to purchase the Securities under Canadian Securities Laws and other applicable securities laws and completing filings required by stock exchanges or securities regulatory authorities. Such Buyer's personal information may be disclosed by the Company to: (a) stock exchanges or securities regulatory authorities, (b) the Canada Revenue Agency or other taxing authorities, and (c) any of the other parties involved in this Agreement, including legal counsel to the Company, and may be included in record books in connection with the transactions contemplated by this Agreement. By executing this Agreement, such Buyer is deemed to be consenting to the foregoing collection, use and disclosure of such Buyer's personal information. Such Buyer also consents to the filing of copies or originals of any of such Buyer's documents described herein as may be required to be filed with any stock exchange or securities regulatory authority in connection with the transactions contemplated hereby. The information provided by such Buyer in this Agreement identifying among other things, the name, address, telephone number and email address of such Buyer, the number of Notes and Commitment Shares, if any, being purchased hereunder, each Purchase Price, each Closing Date and the exemption that such Buyer is relying on in purchasing the Initial Notes will be disclosed to the applicable securities regulatory authorities of the provinces and territories of Canada (the "**Securities Commissions**"), and such information is being indirectly collected by the Securities Commissions pursuant to Canadian Securities Laws for the purposes of the administration and enforcement of Canadian Securities Laws. Each Buyer hereby authorizes the indirect collection of such information by the Securities Commissions. In the event that a Buyer has any questions with respect to the indirect collection of such information, such Buyer should contact the applicable Securities Commission at the contact details provided in <u>Schedule E</u>.

**3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.**

The Company represents and warrants to each of the Buyers that, as of the date hereof and as of each Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization and Qualification</u>. Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity or extra-provincial entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this Agreement, "**Material Adverse Effect**" means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary (as defined below), individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents (as defined below) or any other agreements or instruments to be entered into in connection herewith or therewith, or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents (as defined below). The Company has no Subsidiaries. "**Subsidiaries**" means any Person in which the Company, directly or indirectly, (I) owns any of the outstanding share capital or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a "**Subsidiary**".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authorization; Enforcement; Validity</u>. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement, the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. Each Subsidiary has the requisite power and authority to enter into and perform its obligations under the Transaction Documents to which it is a party. The execution and delivery of this Agreement and the other Transaction Documents by the Company and its Subsidiaries, and the consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes and the Commitment Shares and the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Notes and the Commitment Shares issuable hereunder) have been duly authorized by the Company's board of directors and each Subsidiaries' board of directors or other governing body, as applicable and (other than any required filings with the Securities Commissions and the Canadian Stock Exchange (the "**CSE**") (including, without limitation, any Additional Closing Prospectus Supplement with respect to the Additional Closings) and any other filings as may be required by any Governmental Entity (as defined below))(the "**Required Approvals**") no further filing, consent or authorization is required by the Company, its Subsidiaries, their respective boards of directors or their shareholders or other governing body. This Agreement has been, and the other Transaction Documents to which it is a party, will be prior to such Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law. Prior to such Closing, the Transaction Documents to which each Subsidiary is a party will be duly executed and delivered by each such Subsidiary, and shall constitute the legal, valid and binding obligations of each such Subsidiary, enforceable against each such Subsidiary in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies and except as rights to indemnification and to contribution may be limited by provincial, federal or state securities law. "**Transaction Documents**" means, collectively, this Agreement, the Notes, the Leak-Out Agreements (as defined below), the Administrative Fee Letter (as defined below), and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time. "**Governmental Entity**" means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi- national organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international organization or any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Issuance of Securities; Additional Closing Prospectus Supplement; No Canadian Legends or Restrictions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Issuance of Securities</u>. The Initial Notes have been duly created and authorized and upon issuance in accordance with the terms of the Transaction Documents shall be validly issued as fully paid and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively "**Liens**") with respect to the issuance thereof. As of the applicable Closing, the Company shall have authorized for issuance from its duly authorized share capital not less than the sum of (i) the maximum number of Conversion Shares as may be issuable upon conversion of the Notes (assuming for purposes hereof that (x) the Notes are convertible at the Conversion Price (as defined in the Notes) as of the date hereof, and (y) any such conversion shall not take into account any limitations on the conversion of the Notes set forth in the Notes), and (ii) such aggregate number of Commitment Shares, if any, to be issued in such Closing. Upon issuance or conversion in accordance with the Notes, the Conversion Shares, and pursuant to the terms of this Agreement, the Commitment Shares, respectively, when issued, will be validly issued as fully paid and non-assessable and free from all preemptive or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Shares. The Company is not generally in the business of trading in, or advising on, securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Exemptions; Additional Closing Prospectus Supplement</u>. Subject to the accuracy of the representations and warranties of the Buyers in this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act and, with respect to the Initial Closing the prospectus requirements of Canadian Securities Laws. Prior to any Additional Closing Date occurring after September 30, 2025, the Company shall become eligible to file a short form prospectus under applicable Canadian Securities Laws and shall have prepared and filed with the applicable Securities Commissions, and received a receipt for, the Base Shelf Prospectus, and shall have prepared and filed with the applicable Securities Commissions an Additional Closing Prospectus Supplement under applicable Canadian Securities Laws, and such amendments and supplements thereto as may have been required to such Applicable Additional Closing Date. At the time such Additional Closing Prospectus Supplement and any amendments thereto became effective, at the date of such Additional Closing Date, the Base Shelf Prospectus and such Additional Closing Prospectus Supplement and any amendments thereto conformed and will conform in all material respects to the requirements of applicable Canadian Securities Laws and shall not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Base Shelf Prospectus and such Additional Closing Prospectus Supplement and any amendments or supplements thereto, at the time such Additional Closing Prospectus Supplement or any amendment or supplement thereto was issued and at such Additional Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The Additional Notes and the Commitment Shares, if any, issuable at any Additional Closing (the "**Applicable Underlying Securities**") shall be issued pursuant to, and in reliance upon, the Base Shelf Prospectus and such Additional Closing Prospectus Supplement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>No Canadian Legends or Restrictions</u>. The Securities distributed under the Base Shelf Prospectus and an Additional Closing Prospectus Supplement shall be issuable to the Buyers without any Canadian restricted legend without any restrictions on sales in Canada. All such Applicable Underlying Securities, upon issuance, shall be eligible to be delivered to the Buyers (or such Buyer's broker designee) pursuant to CDS and freely resold by any such Buyer (or such Buyer's broker designee) in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Conflicts</u>. The execution, delivery and performance of the Transaction Documents by the Company and its Subsidiaries and the consummation by the Company and its Subsidiaries of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes, the Conversion Shares and the Commitment Shares and the reservation for issuance of the Conversion Shares and the Commitment Shares) will not (i) result in a violation of the Articles (as defined below), certificate of formation, memorandum of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or any share capital or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, U.S. federal and state securities laws, Canadian Securities Laws, and the rules and regulations of the CSE (the "**Principal Market**") and including all applicable foreign, federal, provincial and state laws, rules and regulations, including, without limitation, the laws, rules and regulations of the province of Ontario and Canada) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Consents</u>. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with (other than the Required Approvals), any Governmental Entity or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by this Agreement and the Transaction Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to such applicable Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Shares in the foreseeable future.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Acknowledgment Regarding Buyer's Purchase of Securities</u>. The Company acknowledges and agrees that each Buyer is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an "affiliate" (as defined in Rule 144) of the Company or any of its Subsidiaries or (iii) to its knowledge, a "beneficial owner" of more than 10% of the Common Shares (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "**1934 Act**")). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer's purchase of the Securities. The Company further represents to each Buyer that the Company's and each Subsidiary's decision to enter into the Transaction Documents to which it is a party has been based solely on the independent evaluation by the Company, each Subsidiary and their respective representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Placement Agent's Fees</u>. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees, or brokers' commissions (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby, including, without limitation, placement agent fees payable to J.V.B. Financial Group, LLC, as placement agent (the "**Placement Agent**") in connection with the sale of the Securities. The fees and expenses of the Placement Agent to be paid by the Company or any of its Subsidiaries are as set forth on <u>Schedule 3(g)</u> attached hereto. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, attorney's fees and out-of-pocket expenses) arising in connection with any such claim. The Company acknowledges that it has engaged the Placement Agent in connection with the sale of the Securities. Other than the Placement Agent, neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Integrated Offering</u>. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of shareholders of the Company for purposes of Canadian Securities Laws or under any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of the Principal Market or any other exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would require registration of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated with other offerings of securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dilutive Effect</u>. The Company understands and acknowledges that the number of Conversion Shares and Commitment Shares will increase in certain circumstances. The Company further acknowledges that its obligation to issue the Conversion Shares pursuant to the terms of the Notes in accordance with this Agreement and the Notes and the Commitment Shares in accordance with this Agreement and the Notes is, in each case, subject to the limitations on conversion or issuance, as applicable, described in Section 4(o) and the rules and policies of the Principal Market and contained in the terms of the Notes and this Agreement, unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Takeover Protections; Rights Agreement</u>. As of the date hereof and as of each Closing Date, the Company has no control share acquisition, interested shareholder, business combination, poison pill (including, without limitation, any distribution under a rights agreement), shareholder rights plan or other similar anti-takeover provision in effect under the Articles or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Disclosure Documents; Financial Statements</u>. The Company is a "reporting issuer" or the equivalent thereof in each of the Reporting Jurisdictions (as defined below) where such concept exists, is not on the list of defaulting reporting issuers maintained by the Securities Commissions in each such Reporting Jurisdiction that maintains such a list, all disclosure and filings on the public record and fees required to be made and paid by the Company and its Subsidiaries pursuant to Canadian Securities Laws have been made and paid, and the Company has not filed any confidential material change reports. The Company has filed all reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the Securities Commissions in the Reporting Jurisdictions pursuant to the reporting requirements of Canadian Securities Laws (all of the foregoing filed prior to the date hereof and as of each Closing Date and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the "**Disclosure Documents**"). As of the time the Disclosure Documents were filed with the applicable Securities Commissions and on SEDAR+ (System for Electronic Document Analysis and Retrieval+) (or, if amended, restated or superseded by a filing prior to the date of this Agreement), (i) each of the Disclosure Documents complied in all material respects with the requirements of applicable Canadian Securities Laws, and (ii) none of the Disclosure Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the Disclosure Documents (the "**Financial Statements**"): (i) complied in all material respects with applicable accounting requirements and the published rules and regulations of applicable Canadian Securities Laws with respect thereto as in effect as of the time of filing, (ii) were prepared in accordance with International Financial Reporting Standards ("**IFRS**"), consistently applied, during the periods involved (except (a) as may be otherwise indicated in such Financial Statements or the notes thereto, or (b) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements), and (iii) fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate). The provisions, if any, recognized by the Company, or the absence thereof, are reasonable based on facts and circumstances known to the Company as of the date hereof and as of each Closing Date, and there are no obligations or contingent liabilities that are required to be recognized in accordance with IAS 37 - Provisions, Contingent Liabilities and Contingent Assets, which have not been appropriately accounted for or disclosed in the Financial Statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers which is not included in the Disclosure Documents (including, without limitation, information referred to in Section 2(f) of this Agreement or in the disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they are or were made. The Company is not currently contemplating to amend or restate any of the Financial Statements (including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the Disclosure Documents, nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with IFRS and the rules and regulations of the Principal Market and Canadian Securities Laws. The Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements. "**Reporting Jurisdictions**" means the Provinces of Ontario, British Columbia, Alberta, Saskatchewan, and Manitoba.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Absence of Certain Changes</u>. Since the date of the Company's most recent Disclosure Document filed on SEDAR+, there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries. Except as set forth on Schedule 3(l) attached hereto, since the date of the Company's most recent audited Financial Statements filed on SEDAR+, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside of the ordinary course of business, (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary course of business or (iv) made any revaluation of any of their respective assets, including, without limitation, writing down the value of capitalized inventory or writing off notes or accounts receivable or any sale of assets other than in the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at such Closing, will not be Insolvent (as defined below). For purposes of this Section 3(l), "**Insolvent**" means, (i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company's and its Subsidiaries' assets is less than the amount required to pay the Company's and its Subsidiaries' total Indebtedness (as defined below), (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each Subsidiary, individually, (A) the present fair saleable value of the Company's or such Subsidiary's (as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature. Neither the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is not about to engage in any business or in any transaction, for which the Company's or such Subsidiary's remaining assets constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. There are no "significant acquisitions", "significant dispositions" or "significant probable acquisitions" for which the Company is required, pursuant to applicable Canadian Securities Laws to include additional financial disclosure in the Base Shelf Prospectus or applicable Additional Closing Prospectus Supplement, other than such additional financial disclosure as is already included in such Additional Closing Prospectus Supplement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Undisclosed Events, Liabilities, Developments or Circumstances</u>. No event, liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable securities laws on a prospectus filed pursuant to Canadian Securities Laws relating to an issuance and sale by the Company of its Common Shares and which has not been publicly announced, or (iii) could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Conduct of Business; Regulatory Permits</u>. Subsidiaries is in violation of any term of or in default Neither the Company nor any of its under its Articles, any certificate of designation, preferences or rights of any other outstanding series of preferred shares of the Company or any of its Subsidiaries or their organizational charter, certificate of formation, memorandum of association, articles of association, certificate of incorporation or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Shares by the Principal Market in the foreseeable future. During the two years prior to the date hereof and as of each Closing Date, (i) the Common Shares have been listed or designated for quotation on the Principal Market, (ii) trading in the Common Shares has not been suspended by the Securities Commissions or the Principal Market and (iii) the Company has received no communication, written or oral, from the Securities Commissions or the Principal Market regarding the suspension or delisting of the Common Shares from the Principal Market. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Foreign Corrupt Practices</u>. Neither the Company, its Subsidiaries nor any director, officer, agent, employee, nor any other person acting for or on behalf of the foregoing (individually and collectively, a "**Company Affiliate**") have violated the U.S. Foreign Corrupt Practices Act, the *Corruption of Foreign Public Officials Act* (Canada) or any other applicable anti-bribery or anti-corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or any other person acting in an official capacity for any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively, a "**Government Official**") or to any person under circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any Government Official, for the purpose of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Transactions With Affiliates</u>. Except as set out on <u>Schedule 3(p)</u> attached hereto, no current employee, partner, director, or officer (direct or indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of any of the foregoing, is presently, or has ever been, (i) a party to any transaction with the Company or its Subsidiaries (including any contract, agreement or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring payments to, any such director or officer or such associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees, officers or directors of the Company or any of its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation, firm, association or business organization which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5% of the common equity of a company whose securities are traded on or quoted through an Eligible Market (as defined in the Notes)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates to the business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries. No employee, officer or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available to all employees or executives (including share option agreements outstanding under any share option plan approved by the Board of Directors of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(q)</u> <u>Equity Capitalization.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "**Common Shares**" means (x) the Company's Common Shares, no par value per share, and (y) any share capital into which such Common Shares shall have been changed or any share capital resulting from a reclassification of such Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Authorized and Outstanding Share Capital</u>. As of the date hereof, the authorized share capital of the Company consists of an unlimited number of Common Shares with no par value, of which 161,323,741 Common Shares are issued and outstanding and 24,915,860 Common Shares are reserved for issuance pursuant to Common Share Equivalents (other than the Notes). "**Common Share Equivalents**" means any security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or convertible into, Common Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Valid Issuance; Available Shares; Affiliates</u>. All of the Company's issued and outstanding Common Shares are duly authorized and have been validly issued as fully paid and non-assessable. <u>Schedule 3(q)(ii)</u> sets forth the number of Common Shares that are (A) reserved for issuance pursuant to Common Share Equivalents (other than the Notes) and (B) that are, as of the date hereof, owned by Persons who are "affiliates" (as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company's issued and outstanding Common Shares are "affiliates" without conceding that any such Persons are "affiliates" for purposes of federal securities laws) of the Company or any of its Subsidiaries. Other that as set out on <u>Schedule 3(q)(iii)</u>, to the Company's knowledge, no Person owns 10% or more of the Company's issued and outstanding Common Shares (calculated based on the assumption that all Common Share Equivalents (as defined below), whether or not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including "blockers") contained therein without conceding that such identified Person is a 10% shareholder for purposes of federal securities laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Existing Securities; Obligations</u>. Except as set forth on <u>Schedule 3(q)(iii)</u>: (A) none of the Company's or any Subsidiary's shares, interests or share capital is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or share capital of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or share capital of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or share capital of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to qualify for distribution by way of prospectus the sale of any of their securities under Canadian Securities Laws; (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; and (F) neither the Company nor any Subsidiary has any share appreciation rights or "phantom share" plans or agreements or any similar plan or agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Organizational Documents</u>. The Company has furnished to the Buyers true, correct and complete copies of the Company's Articles of Incorporation and amendments thereto as in effect on the date hereof (collectively, the "**Articles**"), and the terms of all Common Share Equivalents and the material rights of the holders thereof in respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Indebtedness and Other Contracts</u>. Neither the Company nor any of its Subsidiaries, (i) except as disclosed on <u>Schedule 3(r)</u>, has any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (iv) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company's officers, has or is expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the Disclosure Documents which are not so disclosed in the Disclosure Documents, other than those incurred in the ordinary course of the Company's or its Subsidiaries' respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect. For purposes of this Agreement: (x) "**Indebtedness**" of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, "capital leases" in accordance with IFRS) (other than trade payables entered into in the ordinary course of business, consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with IFRS, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) "**Contingent Obligation**" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto. <br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Litigation</u>. Since two (2) years prior to the date hereof and as of such applicable Closing Date there has been no action, suit, arbitration, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Shares or any of the Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in <u>Schedule 3(s)</u>. No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. Without limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Securities Commissions involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. After reasonable inquiry of its employees, the Company is not aware of any fact which might result in or form the basis for any such action, suit, arbitration, investigation, inquiry or other proceeding. Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity. Except as set forth on <u>Schedule 3(s)</u>, during the period commencing two (2) years prior to the date hereof and prior to such applicable Closing Date and ending on and including such applicable Closing Date, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission or any of the Securities Commissions involving the Company or any current or former director or officer of the Company. Neither the Commission nor any Securities Commission has issued any stop order or other order suspending the effectiveness of any prospectus filed by the Company or any Subsidiary under applicable Canadian Securities Laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Insurance</u>. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Employee Relations</u>. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Company and its Subsidiaries believe that their relations with their employees are good. No current executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer's employment with the Company or any such Subsidiary. No current executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [Intentionally Omitted.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Intellectual Property Rights</u>. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor ("**Intellectual Property Rights**") necessary to conduct their respective businesses as now conducted and presently proposed to be conducted. Each of patents owned by the Company or any of its Subsidiaries is listed on <u>Schedule 3(v)(i)</u>. Except as set forth in <u>Schedule 3(v)(ii)</u>, none of the Company's Intellectual Property Rights have expired or terminated or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this Agreement. Except as set forth in <u>Schedule 3(w)(iii):</u> (a) the Company does not have any knowledge of any infringement by the Company or its Subsidiaries of Intellectual Property Rights of others; (b) there is no claim, action or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding its Intellectual Property Rights; and (c) neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Environmental Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined below), (B) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term "**Environmental Laws**" means all federal, provincial, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "**Hazardous Materials**") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Hazardous Materials (A) have been disposed of or otherwise released from any Real Property of the Company or any of its Subsidiaries in violation of any Environmental Laws; or (B) are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation of any Environmental Laws. No prior use by the Company or any of its Subsidiaries of any Real Property has occurred that violates any Environmental Laws, which violation would have a material adverse effect on the business of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Neither the Company nor any of its Subsidiaries knows of any other person who or entity which has stored, treated, recycled, disposed of or otherwise located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated biphenyls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) None of the Real Properties are on any federal or state "Superfund" list or Liability Information System ("**CERCLIS**") list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>[Intentionally Omitted]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Tax Status</u>. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal, provincial and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries know of no basis for any such claim. The Company believes that it was not a passive foreign investment company, as defined in Section 1297 of the Code for its tax year ended December 31, 2024 and based on current business plans and financial expectations, does not expect to be a passive foreign investment company for the for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Internal Accounting and Disclosure Controls</u>. The Company and each of its Subsidiaries has established and maintains a system of internal accounting controls and internal control over financial reporting (as defined in National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* ("**NI 52-109**")) which is effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The Company has established and maintains a system of disclosure controls and procedures (as defined in NI 52-109) that are effective in ensuring that information required to be disclosed by it under Canadian Securities Laws will be recorded, processed, summarized and reported within the time periods specified by Canadian Securities Laws. As of the date hereof, the Company has no knowledge of any "material weaknesses" in its internal control over financial reporting (as defined in NI 52-109).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Off Balance Sheet Arrangements</u>. There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its filings pursuant to Canadian Securities Laws or the rules and regulations of the Principal Market and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Investment Company Status</u>. The Company is not, and upon consummation of the sale of the Securities will not be, an "investment company," an affiliate of an "investment company," a company controlled by an "investment company" or an "affiliated person" of, or "promoter" or "principal underwriter" for, an "investment company" as such terms are defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Acknowledgement Regarding Buyers' Trading Activity</u>. Except as set forth in Section 4(aa) below, it is understood and acknowledged by the Company that (i) following the public disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, that none of the Buyers have been asked by the Company or its Subsidiaries to agree, nor has any Buyer agreed with the Company or its Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short) any securities of the Company, or "derivative" securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) that each Buyer shall not be deemed to have any affiliation with or control over any arm's length counter party in any "derivative" transaction and (iii) each Buyer may rely on the Company's obligation to timely deliver Common Shares upon conversion, exercise or exchange, as applicable, of the Securities as and when required pursuant to the Transaction Documents for purposes of effecting trading in the Common Shares of the Company. The Company further understands and acknowledges that, except as set forth in Section 4(aa) below, following the public disclosure of the transactions contemplated by the Transaction Documents pursuant to the Initial Material Change Report (as defined below) one or more Buyers may engage in hedging and/or trading activities (including, without limitation, the location and/or reservation of borrowable Common Shares) at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value and/or number of the Conversion Shares deliverable with respect to the Notes are being determined and such hedging and/or trading activities (including, without limitation, the location and/or reservation of borrowable Common Shares), if any, can reduce the value of the existing shareholders' equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that such aforementioned hedging and/or trading activities do not, in and of themselves, constitute a breach of this Agreement, the Notes or any other Transaction Document or any of the documents executed in connection herewith or therewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Manipulation of Price</u>. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities (other than the Placement Agent), (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company or any of its Subsidiaries or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>U.S. Real Property Holding Corporation</u>. Neither the Company nor any of its Subsidiaries is, or has ever been, and so long as any of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of Section 897 of the Code, and the Company and each Subsidiary shall so certify upon any Buyer's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Transfer Taxes</u>. On such Closing Date, all share transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Bank Holding Company Act; Regulation U or X</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA**") and to regulation by the Board of Governors of the Federal Reserve System of the United States (the "**Federal Reserve**"). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The sale of the Notes, the use of proceeds thereof and the other transactions contemplated thereby or by the other Transaction Documents, will not violate or be inconsistent with the provisions of Regulation U or X of the Board of Governors of the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Illegal or Unauthorized Payments; Political Contributions</u>. Neither the Company nor any of its Subsidiaries nor, to the best of the Company's knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Money Laundering</u>. The Company and its Subsidiaries are in compliance with, and have not previously violated, any AML Laws and all other applicable U.S. and non-U.S. anti- money laundering laws and regulations, including, without limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, "Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism" (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Management</u>. Except as set forth in <u>Schedule 3(kk)</u> hereto, during the past five year period, no current or former officer or director or, to the knowledge of the Company, no current ten percent (10%) or greater shareholder of the Company or any of its Subsidiaries has been the subject of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two years before the filing of such petition or such appointment, or any corporation or business association of which such person was an executive officer at or within two years before the time of the filing of such petition or such appointment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not relate to driving while intoxicated or driving under the influence);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining any such person from, or otherwise limiting, the following activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Engaging in any particular type of business practice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of securities laws or commodities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise limiting for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated with persons engaged in any such activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a finding by a court of competent jurisdiction in a civil action or by the Securities Commissions or other authority to have violated any securities law, regulation or decree and the judgment in such civil action or finding by the Securities Commissions or any other authority has not been subsequently reversed, suspended or vacated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Share Option Plans</u>. Each share option granted by the Company was granted (i) in accordance with the terms of the applicable share option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Shares on the date such share option would be considered granted under IFRS and applicable law. No share option granted under the Company's share option plan has been backdated. The Company has not knowingly granted, and there is no and has been no policy or practice of the Company to knowingly grant, share options prior to, or otherwise knowingly coordinate the grant of share options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>No Disagreements with Accountants and Lawyers</u>. There are no material disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's ability to perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof, the Company had discussions with its accountants about its financial statements previously filed with the SEC or with the Securities Commissions in the Reporting Jurisdictions. Based on those discussions, the Company has no reason to believe that it will need to restate any such financial statements or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>No Additional Agreements</u>. The Company does not have any agreement or understanding with any Buyer with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Public Utility Holding Act</u>. None of the Company nor any of its Subsidiaries is a "holding company," or an "affiliate" of a "holding company," as such terms are defined in the Public Utility Holding Act of 2005.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>Federal Power Act</u>. None of the Company nor any of its Subsidiaries is subject to regulation as a "public utility" under the Federal Power Act, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(qq)</u> <u>[Intentionally deleted.]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) <u>Cybersecurity</u>. The Company and its Subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, "**IT Systems**") are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and its Subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants that would reasonably be expected to have a Material Adverse Effect on the Company's business. The Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data, including "Personal Data," used in connection with their businesses. "**Personal Data**" means information about an identifiable individual, but does not include the name, title, or business address of an employee of the Company, and includes (i) a natural person's name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver's license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which would qualify as "personally identifying information" under the Federal Trade Commission Act, as amended; (iii) "personal data" as defined by the European Union General Data Protection Regulation ("**GDPR**") (EU 2016/679); (iv) any information which would qualify as "protected health information" under the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, "**HIPAA**"); and (v) any other piece of information that allows the identification of such natural person, or his or her family, or permits the collection or analysis of any data related to an identified person's health or sexual orientation. There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify any other person or such, nor any incidents under internal review or investigations relating to the same except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. The Company and its Subsidiaries are presently in compliance with all applicable laws or statutes, including the Personal Information Protection and Electronic Documents Act (Canada) (S.C. 2000, c. 5) ("**PIPEDA**"), and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) <u>Compliance with Data Privacy Laws</u>. The Company and its Subsidiaries are, and at all prior times were, in compliance with all applicable federal, provincial and state data privacy and security laws and regulations, including without limitation HIPAA and PIPEDA and the Company and its Subsidiaries have taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with, the GDPR (EU 2016/679) (collectively, the "**Privacy Laws**") except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. To ensure compliance with the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material respects with their policies and procedures relating to data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (the "**Policies**"). The Company and its Subsidiaries have at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect. The Company further certifies that neither it nor any Subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) <u>Disclosure</u>. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents. The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Buyers regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as of the date on which such information is so provided and will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. All financial projections and forecasts that have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to you have been prepared in good faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company's best estimate of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections or forecasts may differ from the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

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**4. COVENANTS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Best Efforts</u>. Each Buyer shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 6 of this Agreement. The Company shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 7 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Form 45-106F1 and Form 72-503F</u>. The Company shall comply with all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyers. The Company shall file a Form 45-106F1 and/or a Form 72-503F, as applicable, with the Securities Commissions in the Reporting Jurisdictions, after each Closing Date within the time prescribed by Canadian Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reporting Status</u>. Until the later of (x) the earlier to occur of (A) the date all Additional Notes issuable hereunder have been issued and (B) such date the parties agree in writing to terminate any such remaining rights hereunder (such earlier date, the "**Additional Closing Expiration Date**") and (y) such date on which the Buyers shall have sold all of the Securities (the "**Reporting Period**"), the Company shall timely file all reports required to be filed with the Securities Commissions pursuant to applicable Canadian Securities Laws, and the Company shall not terminate its status as a "reporting issuer" required to file reports under applicable Canadian Securities Laws even if such applicable Canadian Securities Laws or the rules and regulations of the Principal Market, as applicable, would no longer require or otherwise permit such termination. "**Underlying Securities**" means the (i) the Conversion Shares, (ii) the Commitment Shares and (iii) any share capital of the Company issued or issuable with respect to the Conversion Shares, the Notes or the Commitment Shares, respectively, including, without limitation, (1) as a result of any share split, share dividend, recapitalization, exchange or similar event or otherwise and (2) shares of share capital of the Company into which the Common Shares are converted or exchanged and shares of share capital of a Successor Entity (as defined in the Notes) into which the Common Shares are converted or exchanged, in each case, without regard to any limitations on conversion of the Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Use of Proceeds</u>. The Company will use the proceeds from the sale of the Securities, (x) at the Initial Closing to acquire the Note Purchased SOL (as defined in the Notes) and (y) at any Additional Closing to acquire SOL as a treasury asset for the Company's balance sheet or general corporate or working capital purposes, but in each case not, directly or indirectly, for (i) except as set forth on Schedule 0, the satisfaction of any indebtedness of the Company or any of its Subsidiaries, (ii) the redemption or repurchase of any securities of the Company or any of its Subsidiaries, or (iii) the settlement of any outstanding litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial Information</u>. (i) The Company agrees to send the following to each holder of Notes or Commitment Shares (each, an "**Investor**") during the Reporting Period unless the following are filed with the Securities Commissions through SEDAR+ and are available to the public through the SEDAR system or are otherwise widely disseminated via a recognized news release service (such as PR Newswire): (A) within one (1) Business Day after the filing thereof with the Securities Commissions, a copy of any audited annual financial statements, interim financial statements, management's discussion and analysis, proxy, material change reports and any other filings required pursuant to Canadian Securities Laws, (B) on the same day as the release thereof, facsimile copies of all press releases issued by the Company or any of its Subsidiaries and (C) copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof to the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Current Public Information Failure</u>. At any time commencing on the Initial Closing Date and for so long as the Notes are outstanding, if the Company shall be listed as in default of its continuous filing obligations on the list of reporting issuers maintained by Canadian Securities Administrators on SEDAR+ which is not rectified within ten (10) days of the date the Company is first noted as in default (a "**Current Public Information Failure**") then, in addition to such Buyer's other available remedies, the Company shall pay to each Buyer, in cash, as partial liquidated damages and not as a penalty, by reason of any such actual delay in or reduction of its ability to sell the Securities, an amount in cash equal to one percent (1%) of the Purchase Price of such Buyer on the day of a Current Public Information Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Current Public Information Failure is cured and (b) such time that such public information is no longer required for the Buyers to publicly transfer the Underlying Securities without registration or exemption. The payments to which a Buyer shall be entitled pursuant to this Section 4(f) are referred to herein as "Current Public Information Failure Payments." Current Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Current Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Current Public Information Failure Payments is cured. In the event the Company fails to make Current Public Information Failure Payments in a timely manner, such Current Public Information Failure Payments shall bear interest at the rate of one percent (1%) per month (prorated for partial months) until paid in full. Nothing herein shall limit such Buyer's right to pursue actual damages for the Current Public Information Failure, and such Buyer shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Listing</u>. The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Underlying Securities upon each national securities exchange and automated quotation system, if any, upon which the Common Shares is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) and shall maintain such listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated quotation system. The Company shall maintain the Common Shares' listing or authorization for quotation (as the case may be) on the CSE, the Toronto Stock Exchange, The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (each, an "**Eligible Market**"). Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Shares on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Transfer Agent.</u> The Company shall use best efforts to act in accordance with the terms of the service agreement between the Company and TSX Trust Company, as such agreement may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>General</u>. The Company shall reimburse the Buyer for costs and expenses incurred by it or its affiliates in connection with the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents (the "**Transaction Expenses**"), subject to a maximum reimbursement amount of (a) $200,000 for the Initial Closing, and (b) $35,000 for each Additional Closing, after which, in either case, the Company and the Buyer shall be responsible for their own Transaction Expenses. Amounts to be reimbursed to the Buyer pursuant hereto shall be withheld by the lead Buyer from its Purchase Price at each Closing, and with respect to the Initial Closing, less $85,000 previously paid by the Company to the lead investor. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees, transfer agent fees, CDS (as defined below) fees, DTC (as defined below) fees or broker's commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby (including, without limitation, any fees or commissions payable to the Placement Agent, who is the Company's sole placement agent in connection with the transactions contemplated by this Agreement). The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys' fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Commitment Amount; Administrative Expenses</u>. In additional to any amounts set forth in Section 4(h) above, on each Closing Date, the Company shall pay ATW (as defined below) commitment amount (each, a "**Commitment Amount**") with respect to each Closing in an aggregate amount with respect to such applicable Closing equal to (x) if paid in cash, 4% of the applicable Purchase Price of all Securities sold at such Closing or (y) solely with respect to Additional Closings, if paid in Commitment Shares, 6% of the applicable Purchase Price of all Securities sold at such Closing, provided that if the Commitment Amount is paid in cash, it shall be withheld by the Buyer from the delivery of the Purchase Price on the applicable Closing Date, and provided further that Commitment Shares shall be issued based on the Closing Sale Price (as defined in the Notes) of the Common Shares on the Principal Market on the day prior to Closing, or such other pricing method as shall comply with the rules of such Principal Market.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pledge of Securities</u>. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by an Investor in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Investor effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document, including, without limitation, Section 2(g) hereof; <u>provided</u> that an Investor and its pledgee shall be required to comply with the provisions of Section 2(g) hereof in order to effect a sale, transfer or assignment of Securities to such pledgee. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Disclosure of Transactions and Other Material Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Disclosure of Transaction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Initial Closing</u>. The Company shall promptly, and in any event no later than 9:00 a.m. (New York time) on the first (1<sup>st</sup>) Business Day after the date of this Agreement, (i) issue a press release (the "**Initial Press Release**") reasonably acceptable to the Buyers disclosing all the material terms of the transactions contemplated by the Transaction Documents, and (ii) file a material change report with the Securities Commissions in the Reporting Jurisdictions describing all the material terms of the transactions contemplated by the Transaction Documents in the form required by applicable Canadian Securities Laws (the "**Initial Material Change Report**"). From and after the filing of the Initial Material Change Report, the Company shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the Initial Material Change Report, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Additional Closings</u>. The Company shall, on or before 9:00 a.m., New York time, on the first (1st) Trading Day after the Company receives (or delivers to any Buyer) an Additional Closing Notice either issue a press release (each, an "**Additional Press Release**") or file a material change report with the Securities Commissions in the Reporting Jurisdictions describing all the material terms of the transactions contemplated by the Transaction Documents in the form required by applicable Canadian Securities Laws (the "**Additional Material Change Report**", and together with the Initial Material Change Report, the "**Material Change Reports**"), in each case reasonably acceptable to such Buyer participating in such Additional Closing, disclosing that "an institutional investor" has elected to deliver an Additional Closing Notice to the Company or the Company has elected to effect an Additional Closing, as applicable. From and after the filing of the Additional Press Release or Additional Material Change Report, solely to the extent such Additional Closing Notice constitutes material non-public information (as specified by the Company in such applicable Additional Closing Notice or in its acknowledgement, as applicable, to such applicable Additional Closing Notice), the Company shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the Additional Material Change Report, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Limitations on Disclosure</u>. The Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees and agents not to, provide any Buyer with any material, non-public information regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of such Buyer (which may be granted or withheld in such Buyer's sole discretion). In the event of a breach of any of the foregoing covenants, including, without limitation, Section 4(r) of this Agreement, or any of the covenants or agreements contained in any other Transaction Document, by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents (as determined in the reasonable good faith judgment of such Buyer), in addition to any other remedy provided herein or in the Transaction Documents, subject to at least two (2) Trading Day prior written notice to the Company, such Buyer shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such breach or such material, non-public information, as applicable, without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees or agents. No Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees, affiliates, shareholders or agents, for any such disclosure. Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval of any Buyer, to make the Press Release and any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the Material Change Reports and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of the applicable Buyer (which may be granted or withheld in such Buyer's sole discretion), the Company shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement, release or otherwise, except as required under applicable Canadian Securities Laws. Notwithstanding anything contained in this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly acknowledges and agrees that no Buyer shall have (unless expressly agreed to by a particular Buyer after the date hereof in a written definitive and binding agreement executed by the Company and such particular Buyer (it being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality with respect to, or a duty not to trade on the basis of, any material, non-public information regarding the Company or any of its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Other Confidential Information. Disclosure Failures; Disclosure Delay Payments</u>. In addition to other remedies set forth in this Section 4(k), and without limiting anything set forth in any other Transaction Document, at any time after any Closing Date if the Company, any of its Subsidiaries, or any of their respective officers, directors, employees or agents, provides any Buyer with material non-public information relating to the Company or any of its Subsidiaries (each, the "**Confidential Information**"), the Company shall, on or prior to the applicable Required Disclosure Date (as defined below), publicly disclose such Confidential Information on a material change report or otherwise (each, a "**Disclosure**"). From and after such Disclosure, the Company shall have disclosed all Confidential Information provided to such Buyer by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon such Disclosure, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate. In the event that the Company fails to effect such Disclosure on or prior to the Required Disclosure Date and such Buyer shall have possessed Confidential Information for at least two (2) consecutive Trading Days (each, a "**Disclosure Failure**"), then, as partial relief for the damages to such Buyer by reason of any such delay in, or reduction of, its ability to buy or sell Common Shares after such Required Disclosure Date (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to such Buyer an amount in cash equal to the greater of (I) one percent (1.0%) of the aggregate principal of Notes purchased by such Buyer hereunder and (II) the applicable Disclosure Restitution Amount, on each of the following dates (each, a "**Disclosure Delay Payment Date**"): (i) on the date of such Disclosure Failure and (ii) on every thirty (30) day anniversary such Disclosure Failure until the earlier of (x) the date such Disclosure Failure is cured and (y) such time as all such non-public information provided to such Buyer shall cease to be Confidential Information (as evidenced by a certificate, duly executed by an authorized officer of the Company to the foregoing effect) (such earlier date, as applicable, a "**Disclosure Cure Date**"). Following the initial Disclosure Delay Payment for any particular Disclosure Failure, without limiting the foregoing, if a Disclosure Cure Date occurs prior to any thirty (30) day anniversary of such Disclosure Failure, then such Disclosure Delay Payment (prorated for such partial month) shall be made on the second (2nd) Business Day after such Disclosure Cure Date. The payments to which an Investor shall be entitled pursuant to this Section (iii) are referred to herein as "**Disclosure Delay Payments.**" In the event the Company fails to make Disclosure Delay Payments in a timely manner in accordance with the foregoing, such Disclosure Delay Payments shall bear interest at the rate of one percent (1.0%) per month (prorated for partial months) until paid in full.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For the purpose of this Agreement the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "**Disclosure Failure Market Price**" means, as of any Disclosure Delay Payment Date, the price computed as the quotient of (I) the sum of the five (5) highest VWAPs (as defined in the Notes) of the Common Shares during the applicable Disclosure Restitution Period (as defined below), divided by (II) five (5) (such period, the **"Disclosure Failure Measuring Period**"). All such determinations to be appropriately adjusted for any share dividend, share split, share combination, reclassification or similar transaction that proportionately decreases or increases the Common Shares during such Disclosure Failure Measuring Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "**Disclosure Restitution Amount**" means, as of any Disclosure Delay Payment Date, the product of (x) difference of (I) the Disclosure Failure Market Price less (II) the lowest purchase price, per Common Share, of any Common Shares issued or issuable to such Buyer pursuant to this Agreement or any other Transaction Documents, multiplied by (y) 10% of the aggregate daily dollar trading volume (as reported on Bloomberg (as defined in the Notes)) of the Common Shares on the Principal Market for each Trading Day (as defined in the Notes) either (1) with respect to the initial Disclosure Delay Payment Date, during the period commencing on the applicable Required Disclosure Date through and including the Trading Day immediately prior to the initial Disclosure Delay Payment Date or (2) with respect to each other Disclosure Delay Payment Date, during the period commencing the immediately preceding Disclosure Delay Payment Date through and including the Trading Day immediately prior to such applicable Disclosure Delay Payment Date (such applicable period, the "**Disclosure Restitution Period**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "**Required Disclosure Date**" means (x) if such Buyer authorized the delivery of such Confidential Information, either (I) if the Company and such Buyer have mutually agreed upon a date (as evidenced by an e-mail or other writing) of Disclosure of such Confidential Information, such agreed upon date or (II) otherwise, the seventh (7<sup>th</sup>) calendar day after the date such Buyer first received any Confidential Information or (y) if such Buyer did not authorize the delivery of such Confidential Information, the first (1<sup>st</sup>) Business Day after such Buyer's receipt of such Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Additional Registration Statements</u>. Until the 60<sup>th</sup> calendar day after the Initial Closing Date (the "**Applicable Date**"), the Company shall not, without consent of the Buyers, file (or complete a distribution of securities pursuant to) a prospectus, registration statement or an offering statement under the 1933 Act or Canadian Securities Laws relating to securities that are not the Underlying Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Additional Issuance of Securities</u>. The Company agrees that for the period commencing on the date hereof and ending on the earlier of (i) the date immediately following the 60<sup>th</sup> calendar day after the Initial Closing Date, and (ii) the date on which the Common Shares are listed for trading on NASDAQ (the "**Restricted Period**"), neither the Company nor any of its Subsidiaries shall directly or indirectly issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security or any equity-linked or related security (including, without limitation, any "equity security" (as that term is defined under Rule 405 promulgated under the 1933 Act), any Common Share Equivalents (as defined below), (any such issuance, offer, sale, grant, disposition or announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a "**Subsequent Placement**"). Notwithstanding the foregoing, this Section 4(m) shall not apply in respect of the issuance of (i) Common Shares or any Common Shares Equivalents, as applicable; provided that, any such Person enters into a lock up agreement in form and substance acceptable to the Buyers which shall prohibit the direct or indirect sale, transfer or disposition of such Common Shares or Common Stock Equivalents, as applicable, to any Person during the Restricted Period; provided further, that (x) no lock-up agreement shall be required to the extent such Common Shares and/or Common Shares issuable upon conversion, exercise or exchange of any Common Shares and/or Common Share Equivalent, as applicable, are restricted securities ineligible to be resold by any holder thereof on the Principal Market (and any Eligible Market) during the Restricted Period and (y) the Required Holder may, in its sole discretion, waive the requirement for such Person to enter into a lock up agreement; (ii) the Conversion Shares, (iii) the Commitment Shares and (iv) Common Shares issued pursuant to the Permitted ATM (as defined below) (each of the foregoing in clauses (i) through (iv), collectively the "**Excluded Securities**"). "**Approved Share Plan**" means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which Common Shares and standard options to purchase Common Shares may be issued to any employee, officer or director for services provided to the Company in their capacity as such. "**Permitted ATM**" means any at-the-market offering of the Company in an arms-length transaction with a bona fide broker-dealer; provided that (a) the sale of Common Shares pursuant to any such "at-the-market" offering shall be above USD $1.00, and (B) the trading volume of Common Shares issued pursuant to any such "at-the-market" offering shall be less than 5% of the trading volume on any Trading Day (as defined in the Notes). Notwithstanding anything to the contrary in this Agreement, the Company shall not issue any other securities that would cause a breach or default under the Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reservation of Shares</u>. Until the later of (A) the Additional Closing Expiration Date and (B) such date no Notes remain outstanding, the Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than the maximum number of Common Shares issuable upon conversion of all the Notes then outstanding (assuming for purposes hereof (z) the Notes are convertible at the Conversion Price as of such date of determination, and (y) any such conversion shall not take into account any limitations on the conversion of the Notes set forth in the Notes) (collectively, the "**Required Reserve Amount**"); provided that at no time shall the number of Common Shares reserved pursuant to this Section 4(n) be reduced other than proportionally in connection with any conversion and/or redemption, as applicable of Notes. If at any time the number of Common Shares authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of shareholders to authorize additional shares to meet the Company's obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares, obtain shareholder approval of an increase in such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the Required Reserve Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Limitations on Issuances or Conversions</u>. The Company shall not effect the issuance of any Underlying Securities, as applicable, and the Buyers shall not have the right to convert any portion of the Notes or receive Commitment Shares hereunder, as applicable, pursuant to the terms and conditions hereof of thereof and any such exercise shall be null and void and treated as if never made, to the extent that after giving effect to such exercise, any Buyer together with the other Attribution Parties (as defined below) collectively would beneficially own or control, directly or indirectly, in excess of 9.99% (the "**Maximum Percentage**") of the Common Shares outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of Common Shares beneficially owned by the Buyer and the other Attribution Parties shall include the number of Common Shares held by the Buyer and all other Attribution Parties plus the number of Common Shares issuable upon conversion of the Notes with respect to which the determination of such sentence is being made, but shall exclude Common Shares which would be issuable upon (A) exercise of the remaining, unexercised portion of the Notes beneficially owned by the Buyer or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred shares or warrants) beneficially owned by the Buyer or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 4(o). "**Attribution Parties"** means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after any applicable Closing Date, directly or indirectly managed or advised by the Buyer's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Buyer or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a "group" (as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder) together with the Buyer or any of the foregoing and (iv) any other Persons whose beneficial ownership or control, whether directly or indirectly, of the Common Shares would or could be aggregated (including if such Persons were acting jointly or in concert within the meaning of Canadian Securities Laws) with the Buyer's and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act, the provisions of the *Securities Act* (Ontario), the provisions of National Instrument 62-104 (Take-over Bids and Issuer Bids), and any applicable Canadian Securities Laws. For clarity, the purpose of the foregoing is to subject collectively the Buyer and all other Attribution Parties to the Maximum Percentage. "**Affiliate**" means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power directly or indirectly either to vote 10% or more of the shares having ordinary voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise. This Section 4(o) may not be amended, modified or waived by the parties hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Conduct of Business</u>. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Variable Securities</u>. Until the later of (A) the Additional Closing Expiration Date and (B) such date no Notes remain outstanding, the Company and each Subsidiary shall be prohibited from effecting or entering into an agreement to effect any Subsequent Placement (as defined below) involving a Variable Rate Transaction (other than a Permitted ATM). "**Variable Rate Transaction**" means a transaction in which the Company or any Subsidiary (i) issues or sells any Common Share Equivalents either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the Common Shares at any time after the initial issuance of such Common Share Equivalents, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such Common Share Equivalents or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Shares, other than pursuant to a customary "weighted average" anti-dilution provision or (ii) enters into any agreement (including, without limitation, an equity line of credit or an "at-the-market" offering) whereby the Company or any Subsidiary may sell securities at a future determined price (other than standard and customary "preemptive" or "participation" rights. Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Participation Right</u>. At any time on or prior to the third anniversary of the Initial Closing Date (or such later date that no Notes remain outstanding), neither the Company nor any of its Subsidiaries shall, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(r). The Company acknowledges and agrees that the right set forth in this Section 4(r) is a right granted by the Company, separately, to each Buyer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At least five (5) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to each Buyer a written notice (each such notice, a "**Pre-Notice**"), which Pre-Notice shall not contain any information (including, without limitation, material, non-public information) other than: (A) if the proposed Offer Notice (as defined below) constitutes or contains material, non-public information, a statement asking whether the Buyer is willing to accept material non-public information or (B) if the proposed Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company proposes or intends to effect a Subsequent Placement, (y) a statement that the statement in clause (x) above does not constitute material, non-public information and (z) a statement informing such Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request. Upon the written request of a Buyer within three (3) Trading Days after the Company's delivery to such Buyer of such Pre-Notice, and only upon a written request by such Buyer, the Company shall promptly, but no later than one (1) Trading Day after such request, deliver to such Buyer a written notice (the "**Offer Notice**") of any proposed or intended issuance or sale or exchange (the "**Offer**") of the securities being offered (the "**Offered Securities**") in a Subsequent Placement, which Offer Notice shall (A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, and (C) offer to issue and sell to or exchange with such Buyer in accordance with the terms of the Offer such Buyer's pro rata portion of 25% of the Offered Securities, provided that the number of Offered Securities which such Buyer shall have the right to subscribe for under this Section 4(r) shall be (x) based on such Buyer's pro rata portion of the aggregate original principal amount of the Notes purchased hereunder by all Buyers (the "**Basic Amount**"), and (y) with respect to each Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such Buyer shall indicate it will purchase or acquire should the other Buyers subscribe for less than their Basic Amounts (the "**Undersubscription Amount**"), which process shall be repeated until each Buyer shall have an opportunity to subscribe for any remaining Undersubscription Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to the end of the fifth (5<sup>th</sup>) Business Day after such Buyer's receipt of the Offer Notice (the "**Offer Period**"), setting forth the portion of such Buyer's Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the "**Notice of Acceptance**"). If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then each Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the "**Available Undersubscription Amount**"), each Buyer who has subscribed for any Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems reasonably necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer prior to the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and the Offer Period shall expire on the fifth (5<sup>th</sup>) Business Day after such Buyer's receipt of such new Offer Notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall have the right, following expiration of the Offer Period above to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the "**Refused Securities**") pursuant to a definitive agreement(s) (the "**Subsequent Placement Agreement**"), but only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement Agreement, and (y) either (I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II) the termination of such Subsequent Placement Agreement, which shall be filed on a Material Change Report with the Securities Commissions with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 1(a)(ii) above), then each Buyer may, at its sole option and in its sole discretion, withdraw its Notice of Acceptance or proportionally reduce the number or amount of the Offered Securities specified in its Notice of Acceptance based on the actual size of such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, such Buyer shall acquire from the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance, as reduced pursuant to Section 1(a)(iii) above if such Buyer has so elected, upon the terms and conditions specified in the Offer. The purchase by such Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and such Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to such Buyer and its counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [Intentionally Omitted.]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company and each Buyer agree that if any Buyer elects to participate in the Offer while any Notes are outstanding, (x) neither the Subsequent Placement Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the "**Subsequent Placement Documents**") shall include any term or provision whereby such Buyer shall be required to agree to any restrictions on trading as to any securities of the Company (other than with respect to the Offered Securities, if any) or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement previously entered into with the Company or any instrument received from the Company, and (y) representation and warranties of an Investor in the Subsequent Placement Documents that would prevent such Investor's participation in such Subsequent Placement (or otherwise breach clause (x) of this clause 4(r)(vii)), if any, must be necessary to comply with applicable law, rules and regulations of a Governmental Authority or the Principal Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) shall not be more restrictive than those of the Buyers in this Agreement (other than as).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Notwithstanding anything to the contrary in this Section 4(r) and unless otherwise agreed to by such Buyer, the Company shall either confirm in writing to such Buyer that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities, in either case, in such a manner such that such Buyer will not be in possession of any material, non-public information, by the tenth (10<sup>th</sup>) Business Day following delivery of the Offer Notice. If by such tenth (10<sup>th</sup>) Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by such Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The restrictions contained in this Section 4(r) shall not apply in connection with the issuance of any Excluded Securities. The Company shall not circumvent the provisions of this Section 4(r) by providing terms or conditions to one Buyer that are not provided to all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Passive Foreign Investment Company</u>. The Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Restriction on Redemption and Cash Dividends</u>. Until the later of (A) the Additional Closing Expiration Date and (B) such date no Notes remain outstanding, the Company shall not, directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent of the Buyers, except (i) in the case of cash dividends where (A) at the time the dividend is declared, the value of the Company's "Liquid Assets", being cash, cash equivalents and digital assets, has been 175% or greater of the Company's Indebtedness for fifteen (15) of the twenty (20) Trading Days preceding the date of declaration, and (B) such dividend, together with any other cash dividends paid over the course of the twelve (12) preceding months, does not exceed 15% of the value of the Company's Liquid Assets as of the date of declaration, and (ii) the Company shall not declare any dividend that would be payable in Note Purchased SOL. Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Corporate Existence</u>. Until the later of (A) the Additional Closing Expiration Date and (B) such date no Notes remain outstanding, the Company shall not be party to any Fundamental Transaction (as defined in the Notes) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Conversion Procedures</u>. Each of the form of Conversion Notice (as defined in the Notes) included in the Notes set forth the totality of the procedures required of the Buyers in order to convert the Notes. Except as provided in Section 5(d), no additional legal opinion, other information or instructions shall be required of the Buyers to convert their Notes. The Company shall honor conversions of the Notes and shall deliver the Conversion Shares in accordance with the terms, conditions and time periods set forth in the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Regulation M</u>. The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the distribution of the Securities contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Potential Conflicts with Subsequent Placements</u>. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act), or any person acting on behalf of the Company or such affiliate will sell, offer for sale, or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the 1933 Act) or other Subsequent Placement which will be integrated or aggregated with the sale of the Securities in a manner which would require the registration of the Securities under the 1933 Act or would reduce aggregate number of Common Shares available for issuance pursuant to the terms of the Notes under the rules and regulations of the Principal Market and the Company will take all action that is appropriate or necessary to assure that its offerings of other securities or other Subsequent Placements will not be integrated or aggregated for purposes of the 1933 Act or the rules and regulations of the Principal Market, with the issuance of Securities contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Notice of Disqualification Events</u>. The Company will notify the Buyers in writing, prior to any applicable Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Process Agent</u>. The Company shall appoint and maintain CT (as defined below), or a reasonably similar agent, as its agent for service of process, consistent with Section 9(a), effective from the Initial Closing Date until the 91st calendar day after the Maturity Date (as defined in the Notes).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>No Net Short Position</u>. Each Buyer hereby agrees solely with the Company, severally and not jointly, and not with any other Buyer, for so long as such Buyer owns any Notes, such Buyer shall not, directly or indirectly, maintain a Net Short Position (as defined below). For purposes hereof, a "**Net Short Position**" by a person means a position whereby such person has executed one or more sales of Common Shares that is marked as a short sale (but not including any sale marked "short exempt") and that is executed at a time when such Buyer has no equivalent offsetting long position in the Common Shares (or is deemed to have a long position hereunder or otherwise in accordance with Regulation SHO of the 1934 Act); provided, that, for purposes of such calculations, any short sales either (x) consummated at a price greater than or equal to the Conversion Price (as defined in the Notes), (y) that is a result of a bona-fide trading error on behalf of such Buyer (or its affiliates) or (z) that would otherwise be marked as a "long" sale, but for the occurrence of a Conversion Failure (as defined in the Notes), or any other breach by the Company (or its affiliates or agents, including, without limitation, the Transfer Agent (as defined below)) of any Transaction Document, in each case, shall be excluded from such calculations. For purposes of determining whether a Buyer has an equivalent offsetting "long" position in the Common Shares, (A) all Common Shares that are owned by such Buyer shall be deemed held "long" by such Buyer, (B) at any time a Conversion Notice is delivered by such Buyer to the Company, any Common Shares issued or issuable to such Buyer (or its designee, if applicable) in connection therewith shall be deemed held "long" by such Buyer from and after the date of such Conversion Notice until such time as such Buyer shall no longer beneficially own such Common Shares, and (C) at any other time the Company is required (or has elected (or is deemed to have elected)) to issue Common Shares to such Buyer pursuant to the terms of the Notes, any Common Shares issued or issuable to such Buyer (or its designee, if applicable) in connection therewith shall be deemed held "long" by such Buyer from and after the deadline the Company is required to deliver such applicable Common Shares pursuant to such Conversion Notice, until such time as such Buyer shall no longer beneficially own such Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii)<u>Contribution</u>. Following the Initial Closing, the Company shall contribute an amount of SOL equal to 25% of the fees payable to the Placement Agent in respect of such Closing to the Note Purchased SOL (as defined in the Notes); provided that such SOL shall be included for purposes of calculating Staking Interest (as defined in the Notes) but not for purposes of calculating the Principal (as defined in the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Closing Documents</u>. On or prior to thirty (30) calendar days after each Closing Date, the Company agrees to deliver, or cause to be delivered, to each Buyer and Kelley Drye & Warren LLP a complete closing set of the executed Transaction Documents, Securities and any other document required to be delivered to any party pursuant to Section 7 hereof or otherwise.

**5. REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Register</u>. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities), a register for the Notes in which the Company shall record the name and address of the Person in whose name the Notes have been issued (including the name and address of each transferee), the principal amount of the Notes held by such Person, the number of Conversion Shares issuable pursuant to the terms of the Notes held by such Person. The Company shall keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives. The Company shall ensure that the Commitment Shares are duly included in its register of holders of Common Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer Agent Instructions</u>. In connection with any conversion of a Note or legend removal in accordance with Section 5(d) below, as applicable, the Company shall provide irrevocable instructions to its Transfer Agent and any subsequent transfer agent in a form acceptable to each of the Buyers (the "**Irrevocable Transfer Agent Instructions**") to either (i) (A) at any time on or after any Closing Date (each, an "**Canadian Resale Eligibility Date**"), provided that the Transfer Agent is participating in The Canadian Depository for Securities ("**CDS**"), credit such aggregate number of Conversion Shares to which such Buyer is entitled pursuant to such exercise or conversion, as applicable, (the "**Applicable Resale Shares**") to such Investor's or its designee's balance account with CDS or (B) if the Applicable Resale Shares are eligible to be resold by such Investor pursuant to an available registration statement or are being resold pursuant to an exemption from registration under the 1933 Act that permits the removal of U.S. restrictive legends from such Applicable Resale Shares upon the resale of such Applicable Resale Shares, provided that the Transfer Agent is participating in The Depository Trust Company ("**DTC**") Fast Automated Securities Transfer Program ("**FAST**"), credit such aggregate number of Applicable Resale Shares to such Investor's or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian system, (each such issuance and delivery of Applicable Resale Shares pursuant to this clause (i), an "**Electronic Share Issuance**") or (ii) otherwise, to issue and deliver (via reputable overnight courier) to the address as specified in the Legend Removal Notice (as defined below), Conversion Notice and/or Exercise Notice, as applicable, a certificate, registered in the name of such Investor (or its designee), for such Applicable Resale Shares (each such issuance and delivery of Applicable Resale Shares pursuant to this clause (ii), a "**Certificated Share Issuance**", and together with each Electronic Share Issuance, each, a "**Share Issuance**"). Notwithstanding the foregoing, (I) whether or not the Applicable Resale Shares are eligible for an Electronic Share Issuance, if an Investor elects to effect such applicable Share Issuance pursuant to a Certificate Share Issuance in the Legend Removal Notice, Conversion Notice and/or Exercise Notice, as applicable, such Share Issuance shall be consummated as a Certificate Share Issuance and (II) if such Applicable Resale Shares are eligible to be delivered pursuant to both CDS and DTC in accordance with clause (i) of this Section 5(b), the Legend Removal Notice, Conversion Notice and/or Exercise Notice, as applicable, shall specify which method of delivery shall apply with respect thereto (or, in the absence of any such election or an election to deliver as a Certificate Share Issuance, such Applicable Resale Shares shall be delivered to such Investor (or its designee) in accordance with clause (i)(A) of this Section 5(b)). The Company represents and warrants that no instruction other than the treasury direction referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects a sale, assignment or transfer of the Securities in accordance with Section 2(g), the Company shall permit the transfer and shall promptly instruct its transfer agent to affect each Share Issuance in such name and in such denominations as specified by such Investor to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares sold, assigned or transferred pursuant to an effective registration statement or in compliance with Rule 144 or Regulation S, the transfer agent shall issue such shares to such Buyer, assignee or transferee (as the case may be) without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of any opinion in connection with any resale of Securities pursuant to Rule 144 or the removal of any legends on any of the Securities shall be borne by the Company.

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Legends. Each Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth below, and except with respect to any U.S. Buyers that deliver the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u> (and where such U.S. Buyers agree to the Restricted Security Agreements contained therein),any Securities issued (A) to or for the account or benefit of a U.S. Person shall bear any legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such share certificates):

[*For Notes, use:* NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE] HAVE BEEN][*for Conversion Shares, use*: THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) UNLESS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, OR (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY (I) RULE 144 OR (II) RULE 144A THEREUNDER, IF AVAILABLE AND IN COMPLIANCE WITH STATE SECURITIES LAWS OR (D) WITHIN THE UNITED STATES, WITH ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, PROVIDED, IN THE CASE OF AN OFFER, SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE OR OTHER TRANSFER PURSUANT TO (C)(I) OR (D), THE HOLDER SHALL HAVE PROVIDED TO THE COMPANY AN OPINION OF COUNSEL TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, WHICH OPINION AND COUNSEL MUST BE REASONABLY SATISFACTORY TO THE COMPANY. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA OR ELSEWHERE.

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THESE SECURITIES [AND THE SECURITIES ISSUABLE UPON CONVERSION THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE 1933 ACT, OR THE SECURITIES LAWS OF ANY STATE IN THE UNITED STATES. THESE SECURITIES MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE SECURITIES [AND THE UNDERLYING SECURITIES] HAVE BEEN REGISTERED UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

and (B) pursuant to applicable Canadian Securities Laws, the certificates or other instruments representing the Notes (and the Conversion Shares) and the Commitment Shares will not bear any Canadian restricted legend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Removal of Legends</u>. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 0(A) above or any other U.S. legend (i) while a registration statement covering the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company) (provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in a generally acceptable form, to such effect) or Rule 904 of Regulation S (provided that such Buyer provides the Company with the customary declaration of the Company and to its Transfer Agent, in the form as may be reasonably required by the Company of the Transfer Agent), (iii) if such Securities are anticipated to be sold, assigned or transferred by an Investor under Rule 144 (provided that (x) such Investor provides the Company with reasonable assurances that such Securities are eligible for resale, assignment or transfer under Rule 144 and (y) an opinion of counsel with respect to such resale, assignment or transfer pursuant to Rule 144 is provided to the Company's applicable transfer agent if required by such transfer agent) or Rule 904 of Regulation S (provided that such Buyer provides the Company with the customary declaration of the Company and to its Transfer Agent, in the form as may be reasonably required by the Company of the Transfer Agent) (in each case, without any requirement to deliver an opinion of Buyer's counsel) (iv) in connection with a sale, assignment or other transfer (other than under Rule 144, or Regulation S), provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in a reasonably acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act, or (v) if such legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC) provided that such Buyer provides the Company with an opinion of counsel to such Buyer, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act. If a legend is not required pursuant to the foregoing, the Company shall no later than one (1) Trading Day (as defined in the Notes) (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for the settlement of a trade initiated on the date such Investor delivers such legended certificate representing such Securities to the Company) (each, a "**Required Delivery Date**") following the delivery by an Investor to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with share powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from such Investor as may be required above in this Section 5(d), as directed in writing by such Investor (each, a "**Legend Removal Notice**"), either: (x) if such Securities are eligible to be issued in an Electronic Share Issuance, to issue such Securities in an Electronic Share Issuance accordance with Section 5(b) above or (y) if such Securities are eligible to be issued in an Electronic Share Issuance, to issue such Securities in an Certificated Share Issuance accordance with Section 5(b) above (the date such Common Shares are actually delivered in accordance with Section 5(b) above, the "**Share Delivery Date**"). The Company shall be responsible for any transfer agent fees, CDS fees and/or DTC fees, as applicable, with respect to any issuance of Securities or the removal of any legends with respect to any Securities in accordance herewith. Notwithstanding the foregoing, U.S. Buyers that are Qualified Institutional Buyers acknowledge and understand that this Section 5(d) is not applicable to them pursuant to the representations, warranties and covenants set forth in the Qualified Institutional Buyer Letter attached herein as Schedule D, including the Restricted Security Agreements therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Failure to Timely Deliver; Buy-In</u>. If the Company fails to fail, for any reason or for no reason, to issue and deliver (or cause to be delivered) to an Investor (or its designee) by the Required Delivery Date (or, solely with respect to an Electronic Share Issuance by DTC, an Electronic Share Issuance that is not keyed into CDS as an "Instant Deposit" or a Certificated Share Issuance, the second (2<sup>nd</sup>) Trading Day after such Share Delivery Date)(as applicable, each, a "**Legend Removal Deadline**"), in compliance with Section 5(b) above, such applicable Securities submitted for legend removal by such Investor in the manner specified by Section 5(d) above (each, a "**Legend Removal Failure**"), then, in addition to all other remedies available to such Investor, the Company shall pay in cash (each, a **"Legend Removal Failure Amount**") to such Investor for each Trading Day after the Legend Removal Deadline and during such Legend Removal Failure an amount equal to 1% of the product of (A) the sum of the number of Common Shares not issued to such Investor on or prior to the Required Delivery Date and to which such Buyer is entitled, and (B) any trading price of the Common Shares selected by such Investor in writing as in effect at any time during the period beginning on the date of the delivery by such Investor to the Company of the applicable Conversion Shares and ending on the applicable Legend Removal Deadline. Such Legend Removal Failure Amount shall be due and payable to such Investor on or before the first (1st) Business Day following the cure of such Legend Removal Failure or voiding of such request for a legend remove of such Conversion Shares. In addition to the foregoing, if a Legend Removal Failure occurs and if on or after such Trading Day such Investor acquires (in an open market transaction or otherwise) corresponding to all or any portion of the number of Common Shares issuable upon such conversion that such Buyer is entitled to receive from the Company and has not received from the Company in connection with such Legend Removal Failure (a "**Buy-In**"), then the Company shall, in such Investor's discretion, either (i) within three (3) Business Days after the Holder's request, pay cash to such Investor in an amount equal to such Investor's total purchase price (including brokerage commissions, stock loan costs and other out-of-pocket expenses, if any) for the Common Shares so acquired (including, without limitation, by any other Person in respect, or on behalf, of such Investor) (the "**Buy-In Price**"), at which point the Company's obligation to so deliver such certificate or credit such Investor's balance account shall terminate and such shares shall be cancelled, or (ii) within two (2) Business Days after the Holder's request, promptly honor its obligation to so deliver to such Investor a certificate or certificates or credit the balance account of such Investor or such Investor's designee with DTC or CDS, as applicable, representing such number of Common Shares that would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to such Investor in an amount equal to the excess (if any) in which the Buy-In Price exceeds the product of (A) such number of shares of Conversion Shares that the Company was required to deliver to such Investor by the Required Delivery Date, multiplied by (B) the lowest Closing Sale Price (as defined in the Notes) of the Common Shares on any Trading Day during the period commencing on the date of the delivery by such Investor to the Company of the applicable Conversion Shares and ending on the date of such delivery and payment under this clause (ii). Nothing shall limit such Investor's right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing Common Shares (or to electronically deliver such Common Shares) as required pursuant to the terms hereof. Notwithstanding anything herein to the contrary, with respect to any given Legend Removal Failure, this Section 5(e) shall not apply to the applicable Investor the extent the Company has already paid such amounts in full to such Investor with respect to such Legend Removal Failure, as applicable, pursuant to the analogous sections of the Note held by such Investor. Notwithstanding the foregoing, U.S. Buyers that are Qualified Institutional Buyers acknowledge and understand that this Section 5(d) is not applicable to them pursuant to the representations, warranties and covenants set forth in the Qualified Institutional Buyer Letter attached herein as Schedule D, including the Restricted Security Agreements therein.

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**6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligation of the Company hereunder to issue and sell the Securities to each Buyer at the Initial Closing is subject to the satisfaction, at or before the Initial Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Buyer shall have executed this Agreement together with each of the other Transaction Documents to which it is a party and delivered the same to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Buyer shall have properly completed, executed and delivered the Accredited Investor Status Certificate attached hereto as <u>Schedule C</u> to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Buyer shall have properly completed, executed and delivered the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u> to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(i)) for the Note being purchased by such Buyer at the Initial Closing by wire transfer of immediately available funds (and/or delivery of SOL, as applicable) in accordance with the Flow of Funds Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each Buyer shall have duly executed and delivered to the Company the leak-out agreement in the form attached hereto as **<u>Exhibit B</u>** (the "**Leak-Out Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of the Initial Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Initial Closing Date. The Company shall have received a certificate, duly executed by the Buyer, dated as of the Initial Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Company in the form acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligation of the Company hereunder to issue and sell the Securities to each Buyer at the applicable Additional Closing is subject to the satisfaction, at or before such Additional Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Buyer shall have executed this Agreement together with each of the other Transaction Documents to which it is a party and delivered the same to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Buyer shall have properly completed, executed and delivered the Accredited Investor Status Certificate attached hereto as <u>Schedule C</u> to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Buyer shall have properly completed, executed and delivered the Qualified Institutional Buyer Letter attached hereto as <u>Schedule D</u> to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(i)) for the Note being purchased by such Buyer at such Additional Closing by wire transfer of immediately available funds (and/or delivery of SOL, as applicable) in accordance with the Flow of Funds Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of such Additional Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to such Additional Closing Date. The Company shall have received a certificate, duly executed by the Buyer, dated as of the Additional Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Company in the form acceptable to the Company.

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**7. CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The obligation of each Buyer hereunder to purchase the Securities at the Initial Closing is subject to the satisfaction, at or before the Initial Closing Date, of each of the following conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party, and the Company shall have duly executed and delivered to such Buyer an Initial Note, in such original principal amount as is set forth across from such Buyer's name on the Schedule of Buyers, as being purchased by such Buyer at the Initial Closing pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Buyer shall have received the opinions of Fasken Martineau DuMoulin LLP, the Company's Canadian counsel, and Dorsey & Whitney LLP, the Company's United States counsel, in each case dated as of the Initial Closing Date and in the form acceptable to such Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company's transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in such entity's jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within ten (10) days of the Initial Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated as of the Initial Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company's board of directors in a form reasonably acceptable to such Buyer, and (ii) the Articles of the Company and the organizational documents of each Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each and every representation and warranty of the Company shall be true and correct as of the date when made and as of the Initial Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Initial Closing Date. Such Buyer shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Initial Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company shall have delivered to such Buyer a letter from the Company's transfer agent certifying the number of Common Shares outstanding on the Initial Closing Date immediately prior to the Initial Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Common Shares (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been suspended, as of the Initial Closing Date, by the Securities Commissions or the Principal Market from trading on the Principal Market nor shall suspension by the Securities Commissions or the Principal Market have been threatened, as of the Initial Closing Date, either (I) in writing by the Securities Commissions or the Principal Market or (II) by falling below the minimum listing maintenance requirements of the Principal Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be) the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Each other Buyer and the Company shall have duly executed and delivered to the Company a Leak-Out Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) The Company shall have duly executed and delivered the administrative fee letter, with ATW Partners Opportunities Management, LLC, in the form attached hereto as **<u>Exhibit C</u>** (the "**Administrative Fee Letter**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company (and/or instructions for delivery of SOL, as applicable) (the "**Initial Flow of Funds Letter**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligation of each Buyer hereunder to purchase the Securities at the Additional Closing is subject to the satisfaction, at or before the Additional Closing Date, of each of the following conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party, and the Company shall have duly executed and delivered to such Buyer (x) an Additional Note, in such original principal amount as is set forth across from such Buyer's name on the Schedule of Buyers and (y) such Commitment Share Amount of Commitment Shares, if any, as being purchased by such Buyer at the Additional Closing pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Buyer shall have received the opinions of Fasken Martineau DuMoulin LLP the Company's Canadian counsel, and Dorsey & Whitney, LLP the Company's United States counsel, in each case dated as of the Additional Closing Date and in the form acceptable to such Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company's transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in such entity's jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within ten (10) days of the Additional Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated as of the Additional Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company's board of directors in a form reasonably acceptable to such Buyer, and (ii) the Articles of the Company and the organizational documents of each Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each and every representation and warranty of the Company shall be true and correct in all material respects (except where such representation or warranty is qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Additional Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Additional Closing Date. Such Buyer shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Additional Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company shall have delivered to such Buyer a letter from the Company's transfer agent certifying the number of Common Shares outstanding on the Additional Closing Date immediately prior to the Additional Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Common Shares (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been suspended, as of the Additional Closing Date, by the Securities Commissions or the Principal Market from trading on the Principal Market nor shall suspension by the Securities Commissions or the Principal Market have been threatened, as of the Additional Closing Date, either (I) in writing by the Securities Commissions or the Principal Market or (II) by falling below the minimum listing maintenance requirements of the Principal Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be) the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company (and/or instructions for delivery of SOL, as applicable) (the "**Additional Flow of Funds Letter**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Solely to the extent a Leak-Out Agreement remains in effect with respect to such Buyer, each other Buyer and the Company shall have duly executed and delivered to the Company a Leak-Out Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

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**8. TERMINATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the Initial Closing shall not have occurred with respect to a Buyer within ten (10) Trading Days of the date hereof, then such Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of such Buyer's breach of this Agreement and (ii) the abandonment of the sale and purchase of the Notes and Commitment Shares shall be applicable only to such Buyer providing such written notice, provided further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(i) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Initial Closing shall not have occurred with respect to a Buyer within thirty (30) days of the date hereof, then the Company shall have the right to terminate its obligations under this Agreement at any time on or after the close of business on such date without liability of the Company to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be available to the Company if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of the Company's breach of this Agreement; (ii) the abandonment of the sale and purchase of the Notes and Commitment Shares shall be applicable only to such Buyer providing such written notice, and (iii) the right to terminate this Agreement under this Section 8 shall not be available to the Company if the Company has not satisfied the conditions set out under Section 7(a), except to the extent those conditions can only be satisfied by closing; provided further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(i) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

**9. MISCELLANEOUS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law; Jurisdiction; Jury Trial</u>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any provision of law or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. The Company hereby appoints C T Corporation System (28 Liberty Street, New York, NY 10005) ("**CT**") as its agent for service of process in New York, provided that the Company shall be permitted to change such appointment on written notice to the Holder. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. The choice of the laws of the State of New York as the governing law of this Agreement is a valid choice of law and would be recognized and given effect to in any action brought before a court of competent jurisdiction in Canada, except for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public policy, as such term is interpreted under the laws of Canada. The choice of laws of the State of New York as the governing law of this Agreement will be honored by competent courts in the province of Ontario, Canada, subject to compliance with relevant Ontario civil procedural requirements. The Company or any of its properties, assets or revenues does not have any right of immunity, or to the extent that the Company or any of its properties, assets, or revenues may have or may hereafter become entitled to any such right of immunity, under Canadian or New York law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any Canadian, New York or United States federal court, from service of process, attachment upon or prior to judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Agreement; and, to the extent that the Company, or any of its properties, assets or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which proceedings may at any time be commenced, the Company hereby waives such right to the extent permitted by law and hereby consents to such relief and enforcement as provided in this Agreement and the other Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Headings; Gender</u>. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability; Maximum Payment Amounts</u>. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following is required or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or any of its Subsidiaries (as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including without limitation, any amounts that would be characterized as "interest" under applicable law) exceed amounts permitted under any applicable law. Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay, payment or collection shall be deemed to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing or refunding, at the option of such Buyer, the amount of interest or any other amounts which would constitute unlawful amounts required to be paid or actually paid to such Buyer under the Transaction Documents. For greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid to or received by such Buyer under any of the Transaction Documents or related thereto are held to be within the meaning of "interest" or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Entire Agreement; Amendments</u>. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any transactions by any Buyer with respect to Common Shares or the Securities, and the other matters contained herein and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered into with, or any instruments any Buyer has received from, the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer, or any instruments any Buyer received from the Company and/or any of its Subsidiaries prior to the date hereof, and all such agreements and instruments shall continue in full force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders (as defined below), and any amendment to any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable; provided that no such amendment shall be effective to the extent that it (A) applies to less than all of the holders of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such Buyer's prior written consent (which may be granted or withheld in such Buyer's sole discretion). No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party, provided that the Required Holders may waive any provision of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable, provided that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer's prior written consent (which may be granted or withheld in such Buyer's sole discretion). No consideration (other than reimbursement of legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of the Notes. From the date hereof and while any Notes are outstanding, the Company shall not be permitted to receive any consideration from a Buyer or a holder of Notes that is not otherwise contemplated by the Transaction Documents in order to, directly or indirectly, induce the Company or any Subsidiary (i) to treat such Buyer or holder of Notes in a manner that is more favorable than to other similarly situated Buyers or holders of Notes, or (ii) to treat any Buyer(s) or holder(s) of Notes in a manner that is less favorable than the Buyer or holder of Notes that is paying such consideration; provided, however, that the determination of whether a Buyer has been treated more or less favorably than another Buyer shall disregard any securities of the Company purchased or sold by any Buyer. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company, any Subsidiary or otherwise. As a material inducement for each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors or any of its representatives shall affect such Buyer's right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company's representations and warranties contained in this Agreement or any other Transaction Document and (y) unless a provision of this Agreement or any other Transaction Document is expressly preceded by the phrase "except as disclosed in the Disclosure Documents," nothing contained in any of the Disclosure Documents shall affect such Buyer's right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company's representations and warranties contained in this Agreement or any other Transaction Document. "**Required Holders**" means **ATW SOLANA VENTURES SPV LLC** ("**ATW**"). Notwithstanding the foregoing, this sentence and Section 4(o) above may not be amended, modified or waived by the parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient's email server that such e-mail could not be delivered to such recipient); or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The mailing addresses, and e-mail addresses for such communications shall be:

If to the Company:

Sol Strategies, Inc.

217 Queen St W #401

Toronto, ON M5V 0R2

Attention: Leah Wald

***E-Mail: [Redacted - Contact***

***Information]***

With a copy (for informational purposes only) to:

Fasken Martineau DuMoulin LLP

333 Bay Street

Suite 2400

Bay Adelaide Centre, Box 20

Toronto, ON M5H 2T6

Attention: Daniel Fuke

***E-Mail: [Redacted -***

***Contact Information]***

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If to the Transfer Agent:

TSX Trust Company

301 100 Adelaide St. West

Toronto, Ontario, M5H 4H1, Canada

Telephone: (416) 607-7898

Attention: Client Management

E-Mail: <u>tmxeclientmanagement@tmx.com</u>

***Email: [Redacted - Contact Information]***

If to a Buyer, to its address, e-mail address and facsimile number set forth on the Schedule of Buyers, with copies to such Buyer's representatives as set forth on the Schedule of Buyers,

with a copy (for informational purposes only) to:

Kelley Drye & Warren LLP

3 World Trade Center

175 Greenwich Street

New York, NY 10007

***Telephone: [Redacted - Contact Information]***

Attention: Michael A. Adelstein, Esq.

***E-mail: [Redacted - Contact Information]***

and to:

Goodmans LLP

Bay Adelaide Centre

333 Bay Street, Suite 3400

Toronto, ON M5H 2S7

***Telephone: [Redacted - Contact Information]***

Attention: Francesca Guolo / Randy McAuley

***E-Mail: [Redacted - Contact Information]***

or to such other mailing address and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change, provided that Kelley Drye & Warren LLP shall only be provided copies of notices sent to the lead Buyer. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's e-mail containing the time, date and recipient's e-mail or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by e-mail or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of any of the Notes (but excluding any purchasers of Underlying Securities, unless pursuant to a written assignment by such Buyer). The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Required Holders, including, without limitation, by way of a Fundamental Transaction (as defined in the Notes) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes). A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Third Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section 9(k).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Survival</u>. The representations, warranties, agreements and covenants shall survive each Closing. Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In consideration of each Buyer's execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Buyer (and any affiliate of any such Buyer that holds any Notes, from time to time)and all of their shareholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons' agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "**Indemnitees**") from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements (the "**Indemnified Liabilities**"), incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by such Buyer pursuant to Section 4(k), or (D) the status of such Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief). To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Section 9(k), deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (A) the Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of clause (C) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(k), except to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [Intentionally Omitted.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Construction</u>. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty. Each and every reference to share prices, Common Shares and any other numbers in this Agreement that relate to the Common Shares shall be automatically adjusted for any share splits, share dividends, share combinations, recapitalizations or other similar transactions that occur with respect to the Common Shares after the date of this Agreement. Notwithstanding anything in this Agreement to the contrary, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow, identification of the availability of, and/or securing of, securities of the Company in order for such Buyer (or its broker or other financial representative) to effect short sales or similar transactions in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Remedies; Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Buyer and in the event of assignment by Buyer of its rights and obligations hereunder, each holder of Securities, shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it or any Subsidiary fails to perform, observe, or discharge any or all of its or such Subsidiary's (as the case may be) obligations under the Transaction Documents, any remedy at law would inadequate relief to the Buyers. The Company therefore agrees that the Buyers shall be entitled to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The remedies provided in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under this Agreement and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition to, but not in limitation of, Sections 4(i) and 9(k) hereof, if (A) any Transaction Document is placed in the hands of an attorney for collection of any amounts due thereunder or enforcement, as applicable, or such amounts due thereunder are collected or such Transaction Document enforced, as applicable, through any legal proceeding or an Investor otherwise takes action to collect amounts due under thereunder or to enforce the provisions thereof, as applicable, or (B) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors' rights and involving a claim under any Transaction Document, then the Company shall pay the costs incurred by the Investor for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys' fees and disbursements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company or any Subsidiary does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Payment Set Aside; Currency</u>. To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts and references to "$" in this Agreement and the other Transaction Documents are in U.S. Dollars ("**U.S. Dollars**"), and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. "**Exchange Rate**" means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Judgment Currency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If for the purpose of obtaining or enforcing judgment against the Company in connection with this Agreement or any other Transaction Document in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 9(p) referred to as the "**Judgment Currency**") an amount due in US Dollars under this Agreement, the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction that will give effect to such conversion being made on such date: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 9(p)(2) being hereinafter referred to as the "**Judgment Conversion Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If in the case of any proceeding in the court of any jurisdiction referred to in Section 9(p)(2) above, there is a change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of US Dollars which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Agreement or any other Transaction Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Independent Nature of Buyers' Obligations and Rights</u>. The obligations of each Buyer under the Transaction Documents are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Buyers are in any way acting in concert or as a group or entity, and the Company shall not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Buyers are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by the Transaction Documents.The decision of each Buyer to purchase Securities pursuant to the Transaction Documents has been made by such Buyer independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as agent for such Buyer in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of such Buyer in connection with monitoring such Buyer's investment in the Securities or enforcing its rights under the Transaction Documents. The Company and each Buyer confirms that each Buyer has independently participated with the Company and its Subsidiaries in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose. The use of a single agreement to effectuate the purchase and sale of the Securities contemplated hereby was solely in the control of the Company, not the action or decision of any Buyer, and was done solely for the convenience of the Company and its Subsidiaries and not because it was required or requested to do so by any Buyer. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company, each Subsidiary and a Buyer, solely, and not between the Company, its Subsidiaries and the Buyers collectively and not between and among the Buyers.

*[signature pages follow]*

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**IN WITNESS WHEREOF,** each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

**COMPANY:**

**SOL STRATEGIES, INC.**

*By:* <u>*(signed) "Leah Wald"*</u>

Name: Leah Wald

Title: Chief Executive Officer

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**IN WITNESS WHEREOF,** each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

**BUYER:**

**ATW SOLANA VENTURES SPV LLC**

*By:* <u>*(signed) "Antonio Ruiz-Gimenez"*</u>

Name: Antonio Ruiz-Gimenez

Title: Managing Member

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**SCHEDULE A**

**SCHEDULE OF BUYERS** <br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **(1)** | **(2)** | **(3)** | **(4)** | **(5)** | **(6)** | **(7)** |
| &nbsp;&nbsp;**Buyer** | &nbsp;&nbsp;**Address, Phone Number and**<br>**Email Address** | &nbsp;&nbsp;**Aggregate**<br>**Principal**<br>**Amount of Initial**<br>**Notes** | &nbsp;&nbsp;**Maximum Amount**<br>**of Aggregate**<br>**Principal of**<br>**Additional Notes** | &nbsp;&nbsp;**Initial**<br>**Purchase Price** | &nbsp;&nbsp;**Maximum**<br>**Aggregate**<br>**Additional**<br>**Purchase Price** | &nbsp;&nbsp;**Legal Representative's**<br>**Mailing Address**<br>**and E-mail Address** |
| &nbsp;&nbsp;**ATW SOLANA**<br>**VENTURES SPV**<br>**LLC** | &nbsp;&nbsp;c/o ATW Partners, LLC<br>***[Redacted - Contact***<br>***Information]*** | &nbsp;&nbsp;$20000000 | &nbsp;&nbsp;$480000000 | &nbsp;&nbsp;$20000000 | &nbsp;&nbsp;$480000000 | &nbsp;&nbsp;Kelley Drye & Warren LLP<br>3 World Trade Center 175<br>Greenwich Street New<br>York, NY 10007<br>***[Redacted - Contact***<br>***Information]*** |

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**SCHEDULE B<br>STATUS CERTIFICATE**

*[TO COME FROM COMPANY]*

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**SCHEDULE C**

**CANADIAN ACCREDITED INVESTOR CERTIFICATE**

*The categories listed herein contain certain specifically defined terms. If you are unsure as to the meanings of those terms, or are unsure as to the applicability of any category below, please contact your broker and/or legal advisor before completing this certificate.*

This certificate of the undersigned subscriber (the "**Subscriber**") is being delivered in connection with the issuance of securities (the "**Purchased Securities**") of the Company.

In connection with the purchase by the undersigned Subscriber of the Purchased Securities, the Subscriber, on its own behalf and on behalf of each of the Beneficial Purchasers for whom the Subscriber is acting (collectively, the "**Subscriber**"), hereby represents, warrants, covenants and certifies to the Issuer (and acknowledges that the Issuer and its counsel are relying thereon) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Subscriber is resident in or otherwise subject to the securities laws of one of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick or Prince Edward Island or territories of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Subscriber is purchasing the Purchased Securities as principal for its own account and not for the benefit of any other person or is deemed to be purchasing as principal pursuant to National Instrument 45-106 - *Prospectus Exemptions* ("**NI 45-106**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Subscriber is, and at the Closing Time, will be an "accredited investor", (i) as for a Subscriber who is resident in a jurisdiction other than Ontario, within the meaning of NI 45-106, or (ii) as for a Subscriber who is resident in the Province of Ontario, within the meaning of subsection 73.3(1) of the *Securities Act* (Ontario), on the basis that the undersigned fits within one of the categories of an "accredited investor" reproduced below beside which the undersigned has indicated the undersigned belongs to such category; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Subscriber was not created or is not used solely to purchase or hold securities as an accredited investor as described in paragraph (m) below.

**(PLEASE CHECK THE BOX OF THE APPLICABLE CATEGORY OF ACCREDITED INVESTOR)**

**NOTE: If you check the box beside paragraphs (j), (k) or (l) below, you must complete and execute Appendix 1 to this certificate.**

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| | | |
|:---|:---|:---|
| ☐ | (a) | a Canadian financial institution, or a Schedule III bank (or in Ontario, a bank listed in Schedule I, II, or III of the *Bank Act* (Canada)); |
| ☐ | (b) | the Business Development Bank of Canada incorporated under the *Business Development Bank of Canada Act* (Canada); |
| ☐ | (c) | a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |
| ☐ | (d) | a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer; |

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| | | |
|:---|:---|:---|
| ☐ | (e) | an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d); |
| ☐ | (e.1) | an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the *Securities Act* (Ontario) or the *Securities Act* (Newfoundland and Labrador); |
| ☐ | (f) | the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly-owned entity of the Government of Canada or a jurisdiction of Canada; |
| ☐ | (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec; |
| ☐ | (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |
| ☐ | (i) | a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada; |
| ☐ | (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000; |
|  |  | **If you check beside paragraph (j) above, you** **<u>must</u>** **complete and execute Appendix 1 to this certificate.** |
| ☐ | (j.1) | an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000; |
| ☐ | (k) | an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; |
|  |  | **If you check beside paragraph (k) above, you <u>must</u> complete and execute Appendix 1 to this certificate.** |
| ☐ | (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; |
|  |  | **If you check beside paragraph (l) above, you <u>must</u> complete and execute Appendix 1 to this certificate** **.** |
| ☐ | (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; |
| ☐ | (n) | an investment fund that distributes or has distributed its securities only to (i) a person that is or was an accredited investor at the time of the distribution, (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [*Minimum amount investment*] or 2.19 [*Additional investment in investment funds*] of NI 45-106, or (iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [*Investment fund reinvestment*] of NI 45-106; |

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| | | |
|:---|:---|:---|
| ☐ | (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt; |
| ☐ | (p) | a trust company or trust corporation registered or authorized to carry on business under the *Trust and Loan Companies Act* (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be; |
| ☐ | (q) | a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; |
| ☐ | (r) | a registered charity under the *Income Tax Act* (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded; |
| ☐ | (s) | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function; |
| ☐ | (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; |
| ☐ | (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; |
| ☐ | (v) | a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor; or |
| ☐ | (w) | a trust established by an accredited investor for the benefit of the accredited investor's family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor's spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor's spouse or of that accredited investor's former spouse. |

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For the purposes hereof, the following definitions are included for convenience:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. "bank" means a bank named in Schedule I or II of the *Bank Act* (Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. "Canadian financial institution" means (i) an association governed by the *Cooperative Credit Associations Act* (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of that Act, or (ii) a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or credit union league or federation that, in each case, is authorized by an enactment of a statute of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. "company" means any corporation, incorporated association, incorporated syndicate or other incorporated organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. "entity" means a company, syndicate, partnership, trust or unincorporated organization;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. "financial assets" means (i) cash, (ii) securities, or (iii) a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. "founder" means, in respect of an issuer, a person who, (i) acting alone, in conjunction, or in concert with one or more persons, directly or indirectly, takes the initiative in founding, organizing or substantially reorganizing the business of the issuer, and (ii) at the time of the distribution or trade is actively involved in the business of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. "fully managed account" means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client's express consent to a transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. "individual" means a natural person, but does not include a partnership, unincorporated association, unincorporated organization, trust, or a natural person in his or her capacity as trustee, executor, administrator or other legal personal representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. "investment fund" means a mutual fund or a non-redeemable investment fund, and, for greater certainty in British Columbia, includes an employee venture capital corporation that does not have a restricted constitution, and is registered under Part 2 of the *Employee Investment Act* (British Columbia), R.S.B.C. 1996 c. 112, and whose business objective is making multiple investments and a venture capital corporation registered under Part 1 of the *Small Business Venture Capital Act* (British Columbia), R.S.B.C. 1996 c. 429 whose business objective is making multiple investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. "person" includes (a) an individual, (b) a corporation, (c) a partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and (d) an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. "related liabilities" means (i) liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets and or (ii) liabilities that are secured by financial assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. "Schedule III bank" means an authorized foreign bank named in Schedule III of the *Bank Act* (Canada);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. "spouse" means an individual who (i) is married to another individual and is not living separate and apart within the meaning of the *Divorce Act* (Canada), from the other individual, (ii) is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender, or (iii) in Alberta, is an individual referred to in paragraph (i) or (ii), or is an adult interdependent partner within the meaning of the *Adult Interdependent Relationships Act* (Alberta); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. "subsidiary" means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary.

In NI 45-106 a person or company is an affiliate of another person or company if one is a subsidiary of the other, or if each of them is controlled by the same person or company.

In NI 45-106 and except in Part 2 Division 4 of NI 45-106, a person (first person) is considered to control another person (second person) if (a) the first person beneficially owns or, directly or indirectly, exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless that first person holds the voting securities only to secure an obligation,

(b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or (c) the second person is a limited partnership and the general partner of the limited partnership is the first person.

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In NI 45-106 a trust company or trust corporation described in paragraph (p) above of the definition of "accredited investor" (other than in respect of a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered or authorized under the *Trust and Loan Companies Act* (Canada) or under comparable legislation in another jurisdiction of Canada) is deemed to be purchasing as principal.

In NI 45-106 a person described in paragraph (q) above of the definition of "accredited investor" is deemed to be purchasing as principal.

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Time. If any such representations shall not be true and accurate prior to the Closing Time, the undersigned shall give immediate written notice of such fact to the Issuer prior to the Closing Time.

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| | |
|:---|:---|
| &nbsp;&nbsp;DATED: | &nbsp;&nbsp;SIGNED: |
| &nbsp;&nbsp;Witness (if Subscriber is an individual) |  |
| &nbsp;&nbsp;Print the name of witness | &nbsp;&nbsp;Print the name of Subscriber |
|  | &nbsp;&nbsp;If Subscriber is not an individual, |
|  | &nbsp;&nbsp;print name and title of authorized signing officer |

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**APPENDIX I TO THE CERTIFICATE**

**RISK ACKNOWLEDGEMENT CERTIFICATE**

**THIS FORM IS ONLY REQUIRED TO BE COMPLETED AND SIGNED IF YOU CHECKED BOX (J), (K) OR (L) IN THE ACCREDITED INVESTOR FORM**

**WARNING**<br> **This investment is risky. Don't invest unless you can afford to lose all**<br> **the money you pay for this investment**<br>

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | &nbsp;&nbsp;**SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | &nbsp;&nbsp;**SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | &nbsp;&nbsp;**SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |
| **1.** | &nbsp;&nbsp;**About your investment** |  |  |
| &nbsp;&nbsp;Type of securities: Convertible note | &nbsp;&nbsp;Type of securities: Convertible note | &nbsp;&nbsp;Issuer: Sol Strategies, Inc. |  |
| &nbsp;&nbsp;Type of securities: Convertible note | &nbsp;&nbsp;Type of securities: Convertible note |  |  |
| &nbsp;&nbsp;Purchased from: Sol Strategies Inc. | &nbsp;&nbsp;Purchased from: Sol Strategies Inc. |  |  |
| &nbsp;&nbsp;**SECTION 2 TO 4 TO BE COMPLETED BY THE SUBSCRIBER** | &nbsp;&nbsp;**SECTION 2 TO 4 TO BE COMPLETED BY THE SUBSCRIBER** | &nbsp;&nbsp;**SECTION 2 TO 4 TO BE COMPLETED BY THE SUBSCRIBER** |  |
| **2.** | &nbsp;&nbsp;**Risk acknowledgement** |  |  |
| &nbsp;&nbsp;This investment is risk. Initial to the right of each category that you understand that: | &nbsp;&nbsp;This investment is risk. Initial to the right of each category that you understand that: | &nbsp;&nbsp;This investment is risk. Initial to the right of each category that you understand that: | &nbsp;&nbsp;**Your initials** |
| &nbsp;&nbsp;**Risk of loss -** You could lose your entire investment of $___________. *[Instruction: Insert the total dollar amount of the investment.]* | &nbsp;&nbsp;**Risk of loss -** You could lose your entire investment of $___________. *[Instruction: Insert the total dollar amount of the investment.]* | &nbsp;&nbsp;**Risk of loss -** You could lose your entire investment of $___________. *[Instruction: Insert the total dollar amount of the investment.]* |  |
| &nbsp;&nbsp;**Liquidity risk -** You may not be able to sell your investment quickly - or at all. | &nbsp;&nbsp;**Liquidity risk -** You may not be able to sell your investment quickly - or at all. | &nbsp;&nbsp;**Liquidity risk -** You may not be able to sell your investment quickly - or at all. |  |
| &nbsp;&nbsp;**Lack of information -** You may receive little or no information about your investment. | &nbsp;&nbsp;**Lack of information -** You may receive little or no information about your investment. | &nbsp;&nbsp;**Lack of information -** You may receive little or no information about your investment. |  |
| &nbsp;&nbsp;**Lack of advice -** You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to <u>www.aretheyregistered.ca</u>. | &nbsp;&nbsp;**Lack of advice -** You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to <u>www.aretheyregistered.ca</u>. | &nbsp;&nbsp;**Lack of advice -** You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to <u>www.aretheyregistered.ca</u>. |  |
| &nbsp;&nbsp;**3. Accredited investor status** | &nbsp;&nbsp;**3. Accredited investor status** | &nbsp;&nbsp;**3. Accredited investor status** |  |
| &nbsp;&nbsp;You must meet at least **one** of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. | &nbsp;&nbsp;You must meet at least **one** of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. | &nbsp;&nbsp;You must meet at least **one** of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. |  |

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| |
|:---|
| &nbsp;&nbsp;• Your net income before taxes was more than $200,000 in each of the two (2) most recent calendar years, and <br> you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes <br> on your personal income tax return.) |
| &nbsp;&nbsp;• Your net income before taxes combined with your spouse's was more than $300,000 in each of the two (2) most <br> recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the <br> current calendar year. |
| &nbsp;&nbsp;• Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt <br> related to the cash and securities. |
| &nbsp;&nbsp;• Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total <br> assets (including real estate) minus your total debt.) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**4. Your name and signature** | &nbsp;&nbsp;**4. Your name and signature** |
| &nbsp;&nbsp;By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. | &nbsp;&nbsp;By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. |
| &nbsp;&nbsp;First and last name (please print): |  |
| &nbsp;&nbsp;Signature: | &nbsp;&nbsp;Email: |
| &nbsp;&nbsp;**SECTION 5 TO BE COMPLETED BY THE SALES PERSON** | &nbsp;&nbsp;**SECTION 5 TO BE COMPLETED BY THE SALES PERSON** |
| &nbsp;&nbsp;**5. Salesperson information** | &nbsp;&nbsp;**5. Salesperson information** |
| &nbsp;&nbsp;*[Instruction: The salesperson is the person who meets with, or provides information to, the Subscriber with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]* | &nbsp;&nbsp;*[Instruction: The salesperson is the person who meets with, or provides information to, the Subscriber with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]* |
| &nbsp;&nbsp;First and last name of salesperson (please print): | &nbsp;&nbsp;First and last name of salesperson (please print): |
| &nbsp;&nbsp;Telephon | &nbsp;&nbsp;Email: |
| &nbsp;&nbsp;Name of firm (if registered): |  |
| &nbsp;&nbsp;**SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | &nbsp;&nbsp;**SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |

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| |
|:---|
| &nbsp;&nbsp;**6. For more information about this investment** |
| &nbsp;&nbsp;Sol Strategies, Inc.<br>***Contact: [Redacted - Contact Information]***<br>**For more information about prospectus exemptions, contact your local securities regulator. You can find contact information at** **<u>www.securities-administrators.ca</u>** **.<br>** |
| &nbsp;&nbsp; *Form instructions:*<br> *1. The information in sections 1, 5 and 6 must be completed before the subscriber completes and signs the form.*<br> *2. The subscriber must sign this form. Each of the subscriber and the issuer or selling security holder must receive a copy of this form signed by the subscriber. The issuer or selling security holder is required to keep a copy of this form for 8 years after the distribution.* |

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**SCHEDULE D**

**QUALIFIED INSTITUTIONAL BUYER LETTER**

**(To be Completed by Buyers that are Qualified Institutional Buyers)**

Reference is made to the Securities Purchase Agreement by and among Sol Strategies, Inc. (the "<u>Company</u>"), the undersigned Buyer (also referred to herein as the "<u>Purchaser</u>"), and certain other purchasers, for the purchase of certain <u>Notes</u> of the Company (the "<u>Agreement</u>"). Terms not otherwise defined herein have the meanings ascribed to them in the Agreement.

The Purchaser understands and agrees that the Notes and the Conversion Shares (together, the "<u>Securities</u>") have not been and will not be registered under the United States Securities Act of 1933, as amended (the "<u>Securities Act</u>"), or any applicable U.S. state securities laws, and the Securities are being offered and sold by the Company to the Purchaser in reliance upon Rule 506(b) of Regulation D under the Securities Act ("<u>Regulation D</u>") and/or Section 4(a)(2) of the Securities Act and similar exemptions under applicable securities laws of any state of the United States.

The undersigned represents, warrants and covenants (which representations, warranties and covenants shall survive the Closing) to the Company (and acknowledges that the Company is relying thereon) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. it is a "qualified institutional buyer" as defined in Rule 144A under the Securities Act that is also an "accredited investor" as defined in Rule 501(a) of Regulation D under the Securities Act (a "<u>Qualified Institutional Buyer</u>"), and is acquiring the Securities for its own account or for the account of one or more other persons, each of whom is also a Qualified Institutional Buyer, as to whom it exercises sole investment discretion, and not on behalf of any other person, and not with a view to any resale, distribution or other disposition of the Securities in violation of United States federal or state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. it understands and acknowledges that the Securities acquired by it in the United States will be considered "restricted securities" within the meaning of Rule 144(a)(3) under the Securities Act ("<u>Restricted Securities</u>"). To induce the Company to issue the Securities to the undersigned without a Securities Act restrictive legend, the undersigned represents, warrants and covenants to the Company as follows (collectively, the "<u>Restricted Security Agreements</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. if in the future it decides to offer, sell, pledge, or otherwise transfer, directly or indirectly, any of the Securities, it will do so only (i) to the Company (although the Company is under no obligation to purchase any such securities), or (ii) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, as applicable, and in accordance with local laws and

regulations, and, in each case, in accordance with applicable state securities laws;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. it will cause any CDS Clearing and Depository Services Inc. ("<u>CDS</u>") participant or other nominee holding any Securities on its behalf, and the beneficial purchasers (if any) of the Securities, to comply with the Restricted Security Agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. for so long as the Securities constitute Restricted Securities, it will not deposit any of the Securities into the facilities of the Depository Trust Company or any successor depository within the United States or arrange for the registration of any of the Securities with Cede & Co. or any successor thereto, and it will hold the Securities only in an account at CDS or a successor depository in Canada;

3. it has implemented appropriate internal controls and procedures to ensure that (a) the Securities are properly identified in its records as Restricted Securities that are subject to the resale and transfer restrictions set forth above notwithstanding the absence of a U.S. restrictive legend or restricted CUSIP number, and (b) it is able to comply with those restrictions;

4. it understands and acknowledges the Securities will not be represented by certificates or other instruments that bear a U.S. restrictive legend or be identified by a restricted CUSIP number in reliance on the acknowledgments, representations and agreements contained herein, including the Restricted Security Agreements set forth above;

5. it has not purchased the Securities as a result of any form of "general solicitation" or "general advertising," as those terms are used in Rule 502(c) of Regulation D under the Securities Act, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

6. it is not a party to any contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge to such person, or anyone else, any of the Securities, and has no present plans to enter into any such contract, undertaking, agreement or arrangement;

7. it understands and acknowledges the Company is not obligated to file and has no present intention of filing with the United States Securities and Exchange Commission or with any U.S. state securities administrator any registration statement in respect of resales of the Securities, if any, in the United States;

8. it consents to the Company making a notation on its records or giving instruction to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described herein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. it acknowledges that the representations, warranties and covenants contained in this Qualified Institutional Buyer Letter are made by it with the intent that they may be relied upon by the Company in determining its eligibility or the eligibility of others on whose behalf it is contracting thereunder to purchase the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. it agrees that by accepting the Securities it shall be representing and warranting that the representations and warranties above are true as at the Closing with the same force and effect as if they had been made by it at the Closing and that they shall survive the purchase by it of the Securities and shall continue in full force and effect notwithstanding any subsequent disposition by it of the Securities.

The foregoing representations and warranties are true an accurate as of the date of this Qualified Institutional Buyer Letter and will be true and accurate as of the Closing and as of the conversion of Notes. If any such representations and warranties shall not be true and accurate prior to the Closing or as of the conversion of Notes, the Purchaser shall give immediate written notice of such fact to the Company.

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| | | |
|:---|:---|:---|
| **DATED at** | on | , 2025. |

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| | |
|:---|:---|
| Name of Purchaser (Please Print) | Title of Authorized Representative (Please Print) |
| Signature of Authorized Representative | Address of Purchaser |
| Purchaser's Tax Identification Number | City, State, Zip |
|  | Telephone and Email |

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 **Accepted:**

**SOL STRATEGIES INC.<br>**

<br> By: ____________________________________

Authorized officer

Date:____________________________________

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**SCHEDULE E**

**CONTACT INFORMATION**

**SECURITIES REGULATORY AUTHORITIES**

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| | |
|:---|:---|
| **Alberta Securities Commission** | **Ontario Securities Commission** |
| Suite 600, 250 - 5th Street SW | 20 Queen Street West, 22<sup>nd</sup> Floor |
| Calgary, Alberta T2P 0R4 | Toronto, Ontario M5H 3S8 |
| Telephone: (403) 297-6454 | Telephone: (416) 593-8314 |
| Toll free in Canada: 1-877-355-0585 | Toll free in Canada: 1-877-785-1555 |
| Facsimile: (403) 297-2082 | Facsimile: (416) 593-8122 |
| Public official contact: FOIP Coordinator | Email: exemptmarketfilings@osc.gov.on.ca |
|  | Public official contact: Inquiries Officer |
| **British Columbia Securities Commission** |  |
| **British Columbia Securities Commission** | **Financial and Consumer Affairs Authority of** |
| P.O. Box 10142, Pacific Centre | **Financial and Consumer Affairs Authority of** |
| 701 West Georgia Street | **Saskatchewan** |
| Vancouver, British Columbia V7Y 1L2 | Suite 601 - 1919 Saskatchewan Drive |
| Inquiries: (604) 899-6854 | Regina, Saskatchewan S4P 4H2 |
| Toll free in Canada: 1-800-373-6393 | Telephone: (306) 787-5842 |
| Facsimile: (604) 899-6581 | Facsimile: (306) 787-5899 |
| Email: FOI-privacy@bcsc.bc.ca | Public official contact: Director |
| Public official contact: FOI Inquiries |  |
| **The Manitoba Securities Commission** |  |
| 500 - 400 St. Mary Avenue |  |
| Winnipeg, Manitoba R3C 4K5 |  |
| Telephone: (204) 945-2561 |  |
| Toll free in Manitoba 1-800-655-5244 |  |
| Facsimile: (204) 945-0330 |  |
| Public official contact: Director |  |
| Facsimile: (709) 729-6187 |  |
| Public official contact: Superintendent of |  |
| Securities |  |

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**<u>DISCLOSURE SCHEDULES</u>**

These disclosure schedules (the "**Disclosure Schedules**") are delivered in connection with the Securities Purchase Agreement (the "**Agreement**") dated as of April 23, 2025 by and between the Company and the Buyer(s). For greater certainty, all capitalized terms used in these Disclosure Schedules and not otherwise defined shall have the meaning assigned to them in the Agreement.

Neither these Disclosure Schedules nor any disclosure made in or by virtue of these Disclosure Schedules shall constitute or imply any representation, warranty, assurance, undertaking, covenant, indemnity, guarantee or other commitment of any nature whatsoever on the part of the Company not expressly set out in the Agreement, and neither these Disclosure Schedules nor any such disclosure shall have the effect of, or be construed as, adding to, broadening or extending the scope of any of the representations and warranties of the Company in the Agreement or creating any covenant. Any item of information, matter or document disclosed or referenced in, or attached to, these Disclosure Schedules shall not (a) be used as a basis for interpreting the terms "material", "Material Adverse Effect" or other similar terms in the Agreement or to establish a standard of materiality, (b) represent a determination of whether such item or matter arose in the ordinary course of business, (c) constitute, or be deemed to constitute, an admission of liability or obligation regarding such matter, or (d) constitute, or be deemed to constitute, an admission to any third party concerning such item or matter. No disclosure in these Disclosure Schedules relating to any possible breach, violation or default under any contract, license, applicable law or requirements of any Governmental Entity shall be construed as an admission or indication to any third party that any such breach, violation or default exists or has actually occurred.

The Disclosure Schedules have been arranged for purposes of convenience in separately numbered sections corresponding to the sections of the Agreement; however, any item disclosed in any part, subpart, Section or subsection of these Disclosure Schedules referenced by a particular Section or subsection in the Agreement shall be deemed to have been disclosed with respect to every other Section and subsection in the Agreement if the relevance of such disclosure to such other Section or subsection is reasonably apparent on its face, notwithstanding the omission of an appropriate cross-reference.

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**Section 3(g)**

**Placement Agent's Fees**

• 4% of the gross proceeds from the Initial Closing, in cash, is to be paid to J.V.B. Financial Group, LLC, as placement agent.

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**Section 3(l)**

**Absence of Certain Changes**

• The Company has not made any capital expenditures, individually or in the aggregate, outside of the ordinary course of business, with the exception of the following:

o The acquisition of the Cogent Crypto validator assets on November 25, 2024 <br>o The acquisition of the OrangeFin Ventures LLC assets on December 31, 2024 <br>o The acquisition of Stakewiz and the Laine validator assets on March 17, 2025

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**Section 3(p)**

**Transactions with Affiliates**

• Antanas (Tony) Guoga, current chairman, director and shareholder of the Company, is party to a credit agreement dated October 21, 2024, as amended on January 7, 2025, related to a C$25 million unsecured, revolving demand credit facility where the Company is the borrower.

• Prior to his engagement as a consultant of the Company, Michael Hubbard, current Chief Strategy Officer of the Company, entered into an asset purchase agreement with the Company on March 7, 2025, where he sold certain validator assets to the Company.

• Prior to his engagement as a consultant of the Company, Max Kaplan, current Chief Technology Officer of the Company, entered into an asset purchase agreement with the Company on December 20, 2024, through his wholly-owned company Orangefin Ventures LLC, where he sold certain validator assets to the Company.

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**Section 3(q)**

**Equity Capitalization**

**(iii) Valid Issuance; Available Shares; Affiliates**

• As at the date of the Agreement, 24,915,860 Common Shares are reserved for issuance pursuant to Common Share Equivalents (other than the Notes), pursuant to options, restricted share units, debentures and common share purchase warrants of the Company.

• The following table sets out number of Common Shares owned by "affiliates" (as defined in the Agreement):

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| | |
|:---|:---|
| &nbsp;&nbsp;**Affiliate** | &nbsp;&nbsp;**Common Shares** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;Antanas (Tony) Guoga | &nbsp;&nbsp;31856268 |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |
| &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** | &nbsp;&nbsp;***[Redacted - Commercially Sensitive Confidential Information]*** |

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• As at the date of the Agreement, to the Company's knowledge, Antanas (Tony) Guoga is the only holder of 10% or more of the Company's issued and outstanding Common Shares.

**(iv) Valid Issuance; Available Shares; Affiliates**

The following list sets forth the Company's outstanding options, warrants and other commitments related to the issuance of Common Shares of the Company:

• As of the date of the Agreement, the Company has 7,737,191 options outstanding. Each option is exercisable into one common share and is subject to varying vesting conditions and terms.

• As of the date of the Agreement, the Company has 1,113,669 restricted share units (RSUs) outstanding. Each RSU is convertible into one common share and is subject to varying vesting conditions and terms.

• As of the date of the Agreement, the Company has 16,035,000 warrants outstanding. Each whole warrant is convertible into one common share, subject to varying exercise prices and vesting conditions.

• As of the date of the Agreement, the Company has C$30.0 million convertible debentures outstanding. The debentures are redeemable after three years and are subject to specific terms and conditions.

• Under an asset purchase agreement between the Company and Michael Hubbard dated March 7, 2024, the Company must issue 5,000,000 Common Shares one year from the closing date of the transaction.

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• Under an asset purchase agreement between the Company and Orangefin Ventures LLC dated December 20, 2024, the Company must issue US$5,000,000 Common Shares distributed over three years from the closing date of the transaction.

• Under an asset purchase agreement between the Company and Ben Hawkins dated November 14, 2024, the Company must issue 18,592,000 Common Shares to Ben Hawkins distributed over three years from the closing date of the transaction.

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**Section 3(r)**

**Indebtedness and Other Contracts**

• The Company is the borrower under a credit agreement with Antanas (Tony) Guoga, related to a C$25 million unsecured, revolving demand credit facility.

• As at the date of the Agreement, the Company has C$30.0 million convertible debentures outstanding (the "**Convertible Debentures**"). The debentures are redeemable after three years and are subject to specific terms and conditions.

• The securities purchase agreements dated January 8, 2025 pursuant to which the Convertible Debentures were issued.

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**Section 3(s)**

**Litigation**

***[Redacted - Commercially Sensitive Confidential Information]***

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**Section 3(w)**

**Intellectual Property Rights**

***[Redacted - Commercially Sensitive Confidential Information]***

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**Section 3(kk)**

**Management**

• Not applicable.

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**Section 4(d)**

**Use of Proceeds**

• The Company will use the proceeds as prescribed under the Securities Purchase Agreement. The net proceeds will be used to acquire Solana.

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**<u>Exhibit A</u>**

**Form of Note**

See attached.

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**[FORM OF CONVERTIBLE NOTE]**

**[*for Notes issued to U.S. Holders, add*: NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE SECURITIES AND THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, OR (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY (I) RULE 144 OR (II) RULE 144A THEREUNDER, IF AVAILABLE AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR (D) WITHIN THE UNITED STATES, IN COMPLIANCE WITH ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, PROVIDED, IN THE CASE OF AN OFFER, SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE OR OTHER TRANSFER PURSUANT TO (C)(I) OR (D), THE HOLDER SHALL HAVE PROVIDED TO THE COMPANY AN OPINION OF COUNSEL TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, WHICH OPINION AND COUNSEL MUST BE REASONABLY SATISFACTORY TO THE COMPANY. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA OR ELSEWHERE.]**

**THESE SECURITIES MAY NOT BE CONVERTED IN THE UNITED STATES OR BY OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE SECURITIES AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.**

**ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 16(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF, MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii)**

**OF THIS NOTE.**

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**THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT ("OID"). PURSUANT TO TREASURY REGULATION §1.1275-3(b)(1). A REPRESENTATIVE OF THE COMPANY WILL, BEGINNING TEN DAYS AFTER THE ISSUANCE DATE OF THIS NOTE, PROMPTLY MAKE AVAILABLE TO A HOLDER UPON REQUEST THE INFORMATION DESCRIBED IN TREASURY REGULATION §1.1275-3(b)(1)(i). [ ] MAY BE REACHED AT TELEPHONE NUMBER () - .**

**Sol Strategies, Inc.**

**Convertible Note**

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|:---|:---|
| Issuance Date: <\*>, 2025 | Original Principal Amount: $[___] |

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**FOR VALUE RECEIVED,** Sol Strategies, Inc., a corporation incorporated under the laws of the province of Ontario, Canada (the "**Company**"), hereby promises to pay to the order of **<\*>** or its registered assigns ("**Holder**") the amount set forth above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the "**Principal**") when due, whether upon the Maturity Date, or upon acceleration, prepayment, redemption or otherwise (in each case in accordance with the terms hereof) and, upon the occurrence and continuance of an Event of Default or Staking Interest Payment Date (as defined below), and to pay interest ("**Interest**") on any outstanding Principal at the applicable Default Rate (as defined below) at any such time as such Interest shall be due and payable hereunder, whether upon the Maturity Date, or upon acceleration, conversion, prepayment, redemption or otherwise (in each case in accordance with the terms hereof). This Convertible Note (including all Convertible Notes issued in exchange, transfer or replacement hereof, together with all amendments hereto or thereto, this "**Note**") is one of an issue of Convertible Notes issued pursuant to the Securities Purchase Agreement, dated as of April 23, 2025 (the "**Subscription Date**"), by and among the Company and the investors (the "**Buyers**") referred to therein, as amended from time to time (collectively, the "**Notes**", and such other Convertible Notes, the "**Other Notes**"). Certain capitalized terms used herein are defined in Section 29.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>PAYMENTS OF PRINCIPAL</u>. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, and any accrued and unpaid Interest and accrued and unpaid Late Charges (as defined in Section 22(c)) on such Principal and Interest. Other than as specifically permitted by this Note, the Company may not prepay any portion of the outstanding Principal, accrued and unpaid Interest or accrued and unpaid Late Charges on Principal and Interest, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>DEFAULT INTEREST; STAKING INTEREST</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Default Interest</u>. Other than Staking Interest (as defined below), no Interest shall accrue hereunder unless and until an Event of Default has occurred. From and after the occurrence and during the continuance of any Event of Default, Interest shall accrue hereunder at the Default Rate, computed on the basis of a 360-day year and the actual number of calendar days in any such calendar month, and shall be payable in arrears on the last Business Day of each calendar month (each, an "**Interest Date**") in cash. In addition and without duplication, accrued and unpaid Interest, if any, shall also be payable by way of inclusion of such Interest in the Conversion Amount (as defined below) on each Conversion Date (as defined below) in accordance with Section 3(b)(i), upon any redemption in accordance with Section 11 or upon any required redemption upon any Bankruptcy Event of Default in accordance with Section 4(b). In the event that such Event of Default is subsequently cured or waived (and no other Event of Default then exists (including, without limitation, for the Company's failure to pay such Interest at the Default Rate on the applicable Interest Date)), Interest shall cease to accrue hereunder as of the date of such cure or waiver; provided that the Interest as calculated and unpaid during the continuance of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through and including the date of such cure or waiver of such Event of Default.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Validator; Staking Interest</u>. At any time any Notes remain outstanding, the Company shall delegate all Note Purchased Sol with a validator majority owned and controlled by the Company that does not charge any commissions with respect to such Note Purchased Sol, and which validator shall initially be Orange Fin Ventures. This Note shall accrue staking interest at any time the Company, directly or indirectly, is entitled to Staking Rewards with respect to Note Purchased SOL (the "**Staking Interest**", and such aggregate amount accrued and unpaid to the Holder from time to time, each a "**Staking Interest Amount**"). Within three (3) Business Days of the end of each calendar month (as applicable, each, a "**Staking Interest Payment Date**"), the Company shall pay any outstanding accrued Staking Interest Amount as of such applicable Staking Interest Payment Date to the Holder in SOL to the wallet address provided by the Holder and such Staking Interest Amount shall be calculated based on the outstanding Principal as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in respect of any day where the outstanding Principal of this Note and the Other Notes is between $15,000,000 and $20,000,000, the Holder shall be entitled to 85% of the Staking Rewards earned by the Company in respect of the Note Purchased SOL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in respect of any day where the outstanding Principal of this Note and the Other Notes is between $10,000,000 and $15,000,000, the Holder shall be entitled to 62.5% of the Staking Rewards earned by the Company in respect of the Note Purchased SOL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in respect of any day where the outstanding Principal of this Note and the Other Notes is between $5,000,000 and $10,000,000, the Holder shall be entitled to 37.5% of the Staking Rewards earned by the Company in respect of the Note Purchased SOL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in respect of any day where the outstanding Principal of this Note and the Other Notes is between $2,500,000 and $5,000,000, the Holder shall be entitled to 18.8% of the Staking Rewards earned by the Company in respect of the Note Purchased SOL;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in respect of any day where the outstanding Principal of this Note and the Other Notes is $2,500,000 or less, the Holder shall be entitled to 6.3% of the Staking Rewards earned by the Company in respect of the Note Purchased SOL; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in respect of any day where the outstanding Principal of this Note and the Other Notes is zero, the Holder is not entitled to any Staking Rewards earned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>CONVERSION OF NOTES</u>. At any time after the Issuance Date set forth above, this Note shall be convertible into validly issued, fully paid and non-assessable Common Shares (as defined below), on the terms and conditions set forth in this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion Right</u>. Subject to the provisions of Section 3(d), at any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable Common Shares in accordance with Section 3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a Common Share upon any conversion. If the issuance would result in the issuance of a fraction of a Common Share, the Company shall round such fraction of a Common Share down to the nearest whole Common Share. The Company shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses of the Transfer Agent (as defined below)) that may be payable with respect to the issuance and delivery of Common Shares upon conversion of any Conversion Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conversion Rate</u>. The number of Common Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price then in effect (the "**Conversion Rate**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Conversion Amount**" means the sum of (x) the portion of the Principal to be converted, redeemed or otherwise with respect to which this determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued and unpaid Late Charges with respect to such portion of such Principal and such Interest, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Conversion Price**" means, as of any Conversion Date or other date of determination the Closing Sale Price of the Common Shares as of the Trading Day ended immediately prior to such date of determination, subject to adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics of Conversion</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Optional Conversion</u>. To convert any Conversion Amount into Common Shares on any date (a "**Conversion Date**"), the Holder shall deliver (whether via electronic mail or otherwise), for receipt on or prior to 4:00 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as <u>Exhibit I</u> (the "**Conversion Notice**") to the Company. For greater certainty, a Conversion Notice received by the Company after 4:00 p.m., New York time, shall be deemed to have been received on the following Trading Day. If required by Section 3(c)(iii), within one (1) Trading Days following a conversion of this Note as aforesaid, the Holder shall surrender this Note to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction as contemplated by Section 16(b)). On or before the first (1<sup>st</sup>) the Trading Day on which the Company has received a Conversion Notice, the Company shall transmit by electronic mail a treasury direction substantially in the form attached hereto as **<u>Exhibit B</u>** to the transfer agent (the "**Transfer Agent**"), with a copy to the Holder, to issue the Common Shares in accordance with the registration instructions in the Conversion Notice. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Company has received a Conversion Notice (the "**Share Delivery Deadline**"), the Company shall either (x) (A) at any time on or after the Issuance Date, provided that the Transfer Agent is participating in The Canadian Depository for Securities ("**CDS**"), credit such aggregate number of Common Shares to which the Holder is entitled pursuant to such Conversion Notice (the "**Applicable Conversion Shares**") to the Holder's or its designee's balance account with CDS or (B) if the Applicable Conversion Shares are eligible to be resold by the Holder pursuant to an available registration statement or are being resold pursuant to Rule 144 of the 1933 Act (and (x) the Holder provides the Company with reasonable assurances that such Securities are eligible for resale, assignment or transfer under Rule 144 and (y) an opinion of counsel with respect to such resale, assignment or transfer pursuant to Rule 144 is provided to the Transfer Agent if required by the Transfer Agent), provided that the Transfer Agent is participating in The Depository Trust Company ("**DTC**") Fast Automated Securities Transfer Program ("**FAST**"), credit such aggregate number of Applicable Conversion Shares to the Holder's or its designee's balance account with DTC through its Deposit/Withdrawal at Custodian system, (each such issuance and delivery of Applicable Conversion Shares pursuant to this clause (x), an "**Electronic Share Issuance**") or (y) otherwise, to issue and deliver (via reputable overnight courier) to the address as specified in the applicable Conversion Notice a certificate, registered in the name of the Holder (or its designee), for such Applicable Conversion Shares (each such issuance and delivery of Applicable Conversion Shares pursuant to this clause (y), a "**Certificated Share Issuance**", and together with each Electronic Share Issuance, each, a "**Share Issuance**"). Notwithstanding the foregoing, (I) whether or not the Applicable Conversion Shares are eligible for an Electronic Share Issuance, if the Holder elects to effect such applicable Share Issuance pursuant to a Certificated Share Issuance in such Conversion Notice, such Share Issuance shall be consummated as a Certificated Share Issuance and (II) if such Applicable Conversion Shares are eligible to be delivered pursuant to both CDS and DTC in accordance with clause (x) of this Section 3(c)(i), the Company shall cause the Applicable Conversion Shares to be delivered to the Holder (or its designee) in accordance with the election of the Holder as set forth in such Conversion Notice (or, in the absence of any such election or an election to deliver as a Certificated Share Issuance, such Applicable Conversion Shares shall be delivered to the Holder (or its designee) in accordance with clause (x)(A) of this Section 3(c)(i) above). If this Note is physically surrendered for conversion pursuant to Section 3(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than two (2) Business Days after receipt of this Note and at its own expense, issue and deliver to the Holder (or its designee) a new Note (in accordance with Section 16(d)) representing the outstanding Principal not converted. The Person or Persons entitled to receive the Common Shares issuable pursuant to the applicable Conversion Notice shall be treated for all purposes as the record holder or holders of such Common Shares on the Conversion Date; provided, that the Holder shall be deemed to have waived any voting rights of any such Common Shares during the period commencing on such Conversion Date, through, and including, such applicable Share Delivery Deadline (each, an "**Conversion Period**"), as necessary, such that the aggregate voting rights of any Common Shares beneficially owned by the Holder and/or any Attribution Parties, collectively, on any such date of determination shall not exceed the Maximum Percentage (as defined below) as a result of any such conversion of this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Company's Failure to Timely Convert</u>. If the Company shall fail, for any reason or for no reason, on or prior to the applicable Share Delivery Deadline (or, solely with respect to an Electronic Share Issuance by DTC, an Electronic Share Issuance that is not keyed into CDS as an "Instant Deposit" or a Certificated Share Issuance, the first Trading Day after such Share Delivery Deadline) (each, a "**Conversion Failure Deadline**"), to issue and deliver (or cause to be delivered) to the Holder (or its designee) by such Conversion Failure Deadline, in compliance with Section 3(c)(i) above, such Applicable Conversion Shares in the manner specified by Section 3(c)(i) above (each, a "**Conversion Failure**"), then, in addition to all other remedies available to the Holder, (1) the Company shall pay in cash (each, a "**Conversion Failure Amount**") to the Holder for each Trading Day after such Conversion Failure Deadline that the issuance of such Common Shares is not timely effected an amount equal to 1% of the product of (A) the sum of the number of Common Shares not issued to the Holder on or prior to the Conversion Failure Deadline and to which the Holder is entitled, multiplied by (B) the quotient of (x) the sum of the VWAP of the Common Shares of each Trading Day during the period beginning on the applicable Conversion Date and ending on the applicable Conversion Failure Deadline, divided by (y) that aggregate number of Trading Days in such period and (2) the Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion of this Note that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company's obligations to make payment of any Conversion Failure Amount which have accrued prior to the date of such notice pursuant to this Section 3(c)(ii) or otherwise. Such Conversion Failure Amount shall be due and payable to the Holder on or before the second (2<sup>nd</sup>) Business Day following the cure or waiver of such Conversion Failure or voiding of a Conversion Notice. In addition to the foregoing, if a Conversion Failure occurs and if on or after such Share Delivery Deadline, the Holder acquires (in an open market transaction or otherwise) Common Shares corresponding to all or any portion of the number of Common Shares issuable upon such conversion that the Holder is entitled to receive from the Company and has not received from the Company in connection with such Conversion Failure (a "**Buy-In**"), then, in addition to all other remedies available to the Holder, the Company shall, in the Holder's discretion, either: (I) within three (3) Business Days after the Holder's request, pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage commissions, stock loan costs and other actual out-of-pocket expenses, if any) for the Common Shares so acquired (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver the Applicable Conversion Shares shall terminate, or (II) within two (2) Business Days after the Holder's request, promptly honor its obligation to so issue and deliver to the Holder the Applicable Conversion Shares and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (x) such number of Common Shares to which such Buy-In relates multiplied by (y) the lowest Closing Sale Price of the Common Shares on any Trading Day during the period commencing on the applicable Conversion Date and ending on the date of such issuance and payment under this clause (II) (the "**Buy-In Payment Amount**"). Nothing shall limit the Holder's right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver the Applicable Conversion Shares upon the conversion of this Note as required pursuant to the terms hereof. Notwithstanding the foregoing, the Company's failure to issue and deliver Applicable Conversion Shares by way of an Electronic Share Issuance via CDS or DTC by the Share Delivery Deadline, if due to the failure of the Holder to provide a Deposit ID or DWAC Control Number valid on such date of issuance, respectively, shall not be deemed to be a breach of this Note and shall not constitute a Conversion Failure.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Registration</u>. The Company shall maintain a register (the "**Register**") for the recordation of the names and addresses of the holders of each Note and the principal amount of the Notes held by such holders. The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes (including, without limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary. A Note may be assigned, transferred or sold in whole or in part only by registration of such assignment or sale on the Register. Upon its receipt of a written request to assign, transfer or sell all or part of any Note by the holder thereof that is in compliance with the terms and conditions set forth herein, the Company shall record the information contained therein in the Register and issue one or more new Notes in the same aggregate principal amount as the principal amount of the surrendered Note to the designated assignee or transferee pursuant to Section 16, provided that if the Company does not so record an assignment, transfer or sale (as the case may be) of all or part of any Note that is in compliance with the terms and conditions set forth herein within two (2) Business Days of such a request, then the Register shall be automatically deemed updated to reflect such assignment, transfer or sale (as the case may be). Notwithstanding anything to the contrary set forth in this Section 3, following conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount represented by this Note is being converted (in which event this Note shall be delivered to the Company following conversion thereof as contemplated by Section 3(c)(i)) or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Company shall maintain records showing the Principal, Interest and Late Charges converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. If the Company does not update the Register to record such Principal, Interest and Late Charges converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) within two (2) Business Days of such occurrence, then the Register shall be automatically deemed updated to reflect such occurrence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Pro Rata Conversion; Disputes</u>. In the event that the Company receives a Conversion Notice from more than one holder of Notes for the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion, the Company, subject to Section 3(d), shall convert from each holder of Notes electing to have Notes converted on such date a pro rata amount of such holder's portion of its Notes submitted for conversion based on the principal amount of Notes submitted for conversion on such date by such holder relative to the aggregate principal amount of all Notes submitted for conversion on such date. In the event of a dispute as to the number of Common Shares issuable to the Holder in connection with a conversion of this Note, the Company shall issue to the Holder the number of Common Shares not in dispute and resolve such dispute in accordance with Section 21. Notwithstanding anything herein to the contrary, the Holder shall not have the power to vote or to transfer any Common Shares subject to dispute.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Limitations on Issuances</u>. The Company shall not issue any Common Shares pursuant to this Note, and the Holder shall not have the right to receive any Common Shares pursuant to this Note and any such issuance shall be null and void and treated as if never made, to the extent that after giving effect to such issuance, the Holder together with the other Attribution Parties collectively would beneficially own or control, directly or indirectly, in excess of 9.99% (the "**Maximum Percentage**") of the Common Shares outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the aggregate number of Common Shares beneficially owned by the Holder and the other Attribution Parties shall include the number of Common Shares held by the Holder and all other Attribution Parties plus the number of Common Shares issuable pursuant to this Note with respect to which the determination of such sentence is being made, but shall exclude Common Shares which would be issuable upon (A) conversion of any remaining, nonconverted portion of this Note beneficially owned by the Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible preferred shares or warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained in this Section 3(d). For purposes of this Section 3(d), a person shall be deemed to be the "beneficial owner" of, and to have "beneficial ownership" of, any securities as to which such Person or any of such Person's Affiliates own, either directly or indirectly, or exercise control or direction over, including exercising one or both of voting or investment power. A Person shall be deemed to own beneficially securities beneficially owned by a company controlled by the Person or by any of such Person's Affiliates. Beneficial ownership shall include ownership through a trustee, legal representative, agent or other intermediary and shall include the interest of an entitlement holder, as defined in the *Securities Transfer Act*, 2006, with respect to that security, but does not include the interest of an entitlement holder that is a securities intermediary, as defined in the *Securities Transfer Act*, 2006, that has established a security entitlement, as defined in the *Securities Transfer Act*, 2006, in favour of its entitlement holder with respect to that security. For purposes of determining the number of outstanding Common Shares the Holder may acquire pursuant to this Note without exceeding the Maximum Percentage, the Holder may rely on a written notice by the Company or the Transfer Agent, if any, setting forth the number of Common Shares outstanding (the "**Reported Outstanding Share Number**"). If the Company receives a Conversion Notice from the Holder, the Company shall notify the Holder in writing of the number of Common Shares then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder's beneficial ownership, as determined pursuant to this Section 3(d), to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Common Shares to be issued pursuant to such Conversion Notice. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to the Holder the number of Common Shares then outstanding. In the event that the issuance of Common Shares to the Holder upon conversion of this Note results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage, the number of shares so issued by which the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds the Maximum Percentage (the "**Excess Shares**") shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote or to transfer the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until the sixty-first (61<sup>st</sup>) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61<sup>st</sup>) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of Notes that is not an Attribution Party of the Holder. For purposes of clarity, the Common Shares issuable pursuant to the terms of this Note in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to convert this Note pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of convertibility. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(d) to the extent necessary to correct all or any portion of this paragraph which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 3(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be amended, modified or waived and shall apply to a successor holder of this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>RIGHTS UPON EVENT OF DEFAULT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Event of Default</u>. Each of the following events shall constitute an "**Event of Default**" and each of the events in clauses (v), (vi) and (vii) shall constitute a "**Bankruptcy Event of Default**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the suspension (or threatened suspension) from trading or the failure (or threatened failure) of the Common Shares to be trading or listed (as applicable) on an Eligible Market for a period of five (5) consecutive Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company's (A) failure to cure more than three (3) Conversion Failures by delivery of the required number of Common Shares within five (5) Trading Days after the applicable Conversion Date or exercise date (as the case may be) or (B) notice, written or oral, to any holder of the Notes, including, without limitation, by way of public announcement or through any of its agents, at any time, of its intention not to comply, as required, with a request for conversion of any Notes into Common Shares that is requested in accordance with the provisions of the Notes, other than pursuant to Section 3(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company's or any Subsidiary's failure to pay to the Holder any amount of Principal, Interest, Late Charges or other amounts when and as due under this Note (including, without limitation, the Company's failure to pay any redemption payments or amounts hereunder) or any other Transaction Document (as defined in the Securities Purchase Agreement) or any other agreement, document, certificate or other instrument delivered in connection with the transactions contemplated hereby and thereby, except, in the case of a failure to pay Interest and Late Charges when and as due, in which case only if such failure remains uncured for a period of at least three (3) Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) subject to the terms of any curative provisions in the documents evidencing such Indebtedness, the occurrence of any default under, redemption prior to maturity of or acceleration prior to maturity of at least an aggregate of $1,000,000 of Indebtedness (as defined in the Securities Purchase Agreement) of the Company or any of its Subsidiaries, other than with respect to any Other Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for the relief of debtors shall be instituted by or against the Company or any Subsidiary and, if instituted against the Company or any Subsidiary by a third party, shall not be dismissed within forty-five (45) days of their initiation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the commencement by the Company or any Subsidiary of a voluntary case or proceeding under any applicable federal, state, provincial or foreign bankruptcy, insolvency, reorganization or other similar law, or the commencement by the Company or any Subsidiary of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company or any Subsidiary to the entry of a decree, order, judgment or other similar document in respect of the Company or any Subsidiary in an involuntary case or proceeding under any applicable federal, state, provincial or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state, provincial or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state, provincial or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally as they become due, the taking of corporate action by the Company or any Subsidiary in furtherance of any such action, or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under federal, state, provincial or foreign law, which is not dismissed within forty-five (45) days of its initiation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the entry by a court of (A) a decree, order, judgment or other similar document in respect of the Company or any Subsidiary of a voluntary or involuntary case or proceeding under any applicable federal, state, provincial or foreign bankruptcy, insolvency, reorganization or other similar law, or (B) a decree, order, judgment or other similar document adjudging the Company or any Subsidiary as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company or any Subsidiary under any applicable federal, state or foreign law or (C) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or any Subsidiary or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and, in each of the foregoing subsections (A), (B) and (C), any such decree, order, judgment or other similar document remains unstayed and in effect for a period of forty-five (45) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) a final judgment or judgments for the payment of money aggregating in excess of $1,000,000 are rendered against the Company and/or any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged, settled or stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, any judgment or any portion thereof which is covered by insurance or an indemnity from a creditworthy party shall not be included in calculating the $1,000,000 amount set forth; provided that the Company reasonably demonstrates such insurance coverage or indemnity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Company and/or any Subsidiary, individually or in the aggregate, either (i) fails to pay, when due, as extended by any applicable grace period, any payment with respect to any Indebtedness in excess of $1,000,000 due to any third party (other than with respect to any Other Notes, with respect to unsecured Indebtedness only, payments contested by the Company and/or such Subsidiary (as the case may be) in good faith by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance with IFRS) or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $1,000,000, which breach or violation permits the other party thereto to accelerate amounts due thereunder, or (ii) suffer to exist any other circumstance or event that would, with or without the passage of time or the giving of notice, result in a default or event of default under any agreement binding the Company or any Subsidiary, which default or event of default would or is likely to have a Material Adverse Effect (as defined in the Securities Purchase Agreement);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other than as specifically set forth in another clause of this Section 4(a), the Company or any Subsidiary breaches any representation or warranty, in any material respect (other than representations or warranties subject to material adverse effect or materiality, which may not be breached in any respect) or any covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of five (5) consecutive Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event of Default has occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any breach or failure in any respect by the Company or any Subsidiary to comply with any provision of Section 13 of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any Material Adverse Effect (as defined in the Securities Purchase Agreement) occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) any provision of any Transaction Document shall, as a result of the action or inaction of the Company, at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against the parties thereto, or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall be commenced by the Company or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or the Company or any Subsidiary shall deny in writing that it has any liability or obligation purported to be created under any Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) greater than 10% of the Note Purchased SOL is subject to a Slashing Event, provided that if the Company restores the number of Note Purchased SOL to the amount that comprised the Note Purchase SOL prior to the Staking Event within five (5) Trading Days, the foregoing shall not constitute an Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) any Event of Default (as defined in the Other Notes) occurs with respect to any Other Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of an Event of Default; Redemption Right</u>. Upon becoming aware of the occurrence of an Event of Default with respect to this Note or any Other Note, the Company shall within two (2) Business Days of becoming aware of such occurrence of an Event of Default (but, in any event, no later than five (5) Business Days after such occurrence of an Event of Default) deliver written notice thereof via electronic mail and overnight courier (with next day delivery specified) (an "**Event of Default Notice**") to the Holder in accordance with the terms hereof. At any time after the earlier of the Holder's receipt of an Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder may require the Company to redeem (regardless of whether the circumstances giving rise to such Event of Default remain in effect) all or any portion of this Note by delivering written notice thereof (the "Event of Default Redemption Notice") to the Company which Event of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to redeem. Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price equal to the product of (A) the Conversion Amount to be redeemed multiplied by (B) the Redemption Premium (the "**Event of Default Redemption Price**"). Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section 11. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 4(b), but subject to Section 3(d), until the Event of Default Redemption Price (together with any Late Charges thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 4(b) (together with any Late Charges thereon) may be converted, in whole or in part, by the Holder into Common Shares pursuant to the terms of this Note. In the event of the Company's redemption of any portion of this Note under this Section 4(b), the Holder's damages would be uncertain and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any redemption premium due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder's actual loss of its investment opportunity and not as a penalty. Any redemption upon an Event of Default shall not constitute an election of remedies by the Holder, and all other rights and remedies of the Holder shall be preserved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mandatory Redemption upon Bankruptcy Event of Default</u>. Notwithstanding anything to the contrary herein, and notwithstanding any conversion that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the Maturity Date, the Company shall immediately pay to the Holder an amount in cash representing (i) all outstanding Principal, accrued and unpaid Interest and accrued and unpaid Late Charges on such Principal and Interest, multiplied by (ii) the Redemption Premium, in addition to any and all other amounts due hereunder, without the requirement for any notice or demand or other action by the Holder or any other person or entity, provided that the Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Event of Default, in whole or in part, and any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect of such Bankruptcy Event of Default, any right to conversion, and any right to payment of the Event of Default Redemption Price or any other Redemption Price, as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>RIGHTS UPON FUNDAMENTAL TRANSACTION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of a Fundamental Transaction; Redemption/Assumption Elections</u>. By no later than the first (1<sup>st</sup>) Trading Day after the public announcement of a Fundamental Transaction with a Successor Entity, the Company shall deliver written notice thereof via electronic mail and overnight courier (with next day delivery specified) to the Holder (each, a "**Fundamental Transaction Notice**"). At any time beginning after the Holder's receipt of any such Fundamental Transaction Notice (or, if earlier, such time as the Holder becomes aware of such Fundamental Transaction) and ending fifteen (15) Trading Days after the date delivery of the Fundamental Transaction Notice (or such later date as the Company may elect in such Fundamental Transaction Redemption Notice with respect thereto) (the "**Fundamental Transaction Election Period**"), the Holder may either (a) require the Company to redeem (each, a "**Fundamental Transaction Redemption**") all of Conversion Amount of this Note by delivering written notice thereof (such notice, a "**Fundamental Transaction Redemption Notice**", and such election, a "**Fundamental Transaction Redemption Election**", and the date thereof, the "**Fundamental Transaction Redemption Election Date**"), or (b) elect to have the Successor Entity succeed to, and be substituted for the Company in this Note and the other Transaction Documents (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the "Company" shall refer instead to the Successor Entity) (each, an, "**Assumption Election**"), and the Successor Entity shall assume, in writing, all of the obligations of the Company under this Note and the other Transaction Documents (with the same effect as if such Successor Entity had been named as the "Company" herein). If the Holder fails to make any election during an applicable Fundamental Transaction Election Period, the Holder shall be automatically deemed to have made a Fundamental Transaction Redemption Election during the applicable Fundamental Transaction Redemption Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Disclosures in Fundamental Transaction Notice</u>. Each Fundamental Transaction Notice shall be duly executed by an authorized officer of the Company and shall (i) state that the public disclosure of a Fundamental Transaction has occurred (and include a hyperlink to any such disclosure document and/or release), (ii) request the Holder either elect to effect a Fundamental Transaction Redemption Election or Assumption Election with respect thereto by a specified deadline (which shall be the last calendar day in such Fundamental Transaction Election Period or such later date as the Company may elect in such Fundamental Transaction Redemption Notice), and (iii) specify the proposed Fundamental Transaction Redemption Date (as defined below) and the Fundamental Transaction Redemption Price (as defined below), if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Confirmation of Assumption</u>. Upon consummation of a Fundamental Transaction in which the Holder has made an Assumption Election, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time after the consummation of such Fundamental Transaction, in lieu of the Common Shares (or other securities, cash, assets or other property (except such items still issuable under Section 6 which shall continue to be receivable thereafter)) issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction, such shares of the Successor Entity (including its Parent Entity) (as applicable, the "**Successor Shares**") which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Note been converted immediately prior to such Fundamental Transaction (without regard to any limitations on the conversion of this Note), as adjusted in accordance with the provisions of this Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Mechanics of Fundamental Transaction Redemption</u>. If the Holder makes (or is deemed to have made) a Fundamental Transaction Redemption Election during the applicable Fundamental Transaction Redemption Period, on or prior to the later of (x) the time of consummation of such Fundamental Transaction and (y) the fifth (5<sup>th</sup>) Trading Day after such Fundamental Transaction Redemption Election Date (such later date, the "**Fundamental Transaction Redemption Date**"), the Note shall be redeemed in cash at a redemption price equal to the product of (x) the Redemption Premium and (y) the Conversion Amount being redeemed (the "**Fundamental Transaction Redemption Price**"). Redemptions required by this Section 5 shall be made in accordance with the provisions of Section 11. To the extent redemptions required by this Section 5 are deemed or determined by a court of competent jurisdiction to be prepayments of this Note by the Company, such redemptions shall be deemed to be voluntary prepayments. In the event of the Company's redemption of any portion of this Note under this Section 5, the Holder's damages would be uncertain and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any redemption premium due under this Section 5 is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder's actual loss of its investment opportunity and not as a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of this Section 5 shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>6.</u> <u>[Intentionally deleted.]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>ADJUSTMENT OF CONVERSION PRICE UPON SUBDIVISION OR COMBINATION OF COMMON SHARES</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustment of Conversion Price upon Subdivision or Combination of Common Shares</u>. Without limiting any provision of Section 6 or this Section 7, if the Company at any time on or after the Subscription Date (i) subdivides or , redivides one or more classes of its outstanding Common Shares into a greater number of Common Shares or (ii) reduces, combines or consolidates one or more class of its outstanding Common Shares, the Conversion Price on and at any time after the effective date of such subdivision, re-division, reduction, combination or consolidation, will be reduced, in the case of the events referred to in (i) in the proportion which the number of Common Shares outstanding before such subdivision or re-division bears to the number of Common Shares outstanding after such subdivision or re-division, or will be increased, in the case of (ii) above, in the proportion which the Common Shares outstanding before such reduction, combination, or consolidation bears to the number of Common Shares outstanding after such reduction, combination or consolidation. <br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Adjustments Upon Distribution of Assets</u>. If the Company shall declare or make any special dividend or other distribution of its assets (or rights to acquire its assets) to all or substantially all holders of Common Shares, by way of return of capital or otherwise (including, without limitation, any distribution of cash, shares or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Special Distribution**"), at any time after the issuance of this Note, then, in each such case, any Conversion Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of Common Shares entitled to receive the Special Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Conversion Price by a fraction of which (i) the numerator shall be the number of Common Shares outstanding on the record date multiplied by the Closing Sale Price of the Common Shares on the trading day immediately preceding such record date minus the fair market value of the Special Distribution (as determined in good faith by the Company's Board of Directors), and (ii) the denominator shall be the number of Common Shares outstanding on the record date multiplied by the Closing Sale Price of the Common Shares on the trading day immediately preceding such record date. Notwithstanding anything to the contrary contained herein, the provisions of this Section 7(b) shall not be applicable in the case of regular periodic cash dividends paid by the Company to the holders of Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Calculations</u>. All calculations under this Section 7 shall be made by rounding to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of Common Shares outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Voluntary Adjustment by Company</u>. Subject to the rules and regulations of the CSE, the Company may at any time during the term of this Note, with the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), reduce the then current Conversion Price of each of the Notes to any amount and for any period of time deemed appropriate by the board of directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>VOLUNTARY PREPAYMENT</u>. Provided that no Event of Default has occurred and is continuing, the Company shall have the right, but not the obligation, on no less than fifteen (15) Trading Days' written notice to the Holder, to prepay all or any part of the outstanding Principal of the Notes in cash for an amount equal to 107.5% of the Principal, accrued Interest, Later Charges and other amounts being repaid (or, if during an applicable Fundamental Transaction Election Period (unless the Holder has made an Assumption Election with respect thereto), the Fundamental Transaction Redemption Price (as defined below) with respect thereto).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its Articles (as defined in the Securities Purchase Agreement) or through any reorganization, transfer of assets, consolidation, merger, amalgamation, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights of the Holder of this Note. Without limiting the generality of the foregoing or any other provision of this Note or the other Transaction Documents, the Company (a) shall not increase the par value of any Common Shares receivable upon conversion of this Note above the Conversion Price then in effect, and (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Common Shares upon the conversion of this Note. Notwithstanding anything herein to the contrary, if after sixty (60) calendar days following the Issuance Date, the Holder is not permitted to convert this Note in full for any reason (other than pursuant to restrictions set forth in Section 3(d) hereof), the Company shall use its best efforts to promptly remedy such failure, including, without limitation, obtaining such consents or approvals as necessary to permit such conversion into Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>RESERVATION OF AUTHORIZED SHARES</u>. So long as any Notes remain outstanding, the Company shall at all times authorize at least 100% of the number of Common Shares as shall from time to time be necessary to effect the conversion of all of the Notes then outstanding (without regard to any limitations on conversions and assuming such Notes remain outstanding until the Maturity Date) at the Conversion Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>REDEMPTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics</u>. The Company shall deliver the applicable Event of Default Redemption Price to the Holder in cash within six (6) Business Days after the Company's receipt of the Holder's Event of Default Redemption Notice (each, an "**Event of Default Redemption Date**"). If the Holder has submitted a Fundamental Transaction Redemption Notice in accordance with Section **Error! Reference source not found.**, the Company shall deliver the applicable Fundamental Transaction Redemption Price to the Holder on the applicable Fundamental Transaction Redemption Date. In the event of a redemption of less than all of the Conversion Amount of this Note, upon delivery of this Note to the Company, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 16(d)) representing the outstanding Principal which has not been redeemed. In the event that the Company does not pay the applicable Redemption Price to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly return to the Holder all or any portion of this Note representing the Conversion Amount or Designated Redemption Amount, as the case may be, that was submitted for redemption and for which the applicable Redemption Price (together with any Late Charges thereon) has not been paid. Upon the Company's receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount or Designated Redemption Amount, and (y) the Company shall immediately return this Note, or issue a new Note (in accordance with Section 16(d)), to the Holder, and in each case the principal amount of this Note or such new Note (as the case may be) shall be increased by or shall reflect (as the case may be) an amount equal to the difference between (1) the applicable Redemption Price (as the case may be, and as adjusted pursuant to this Section 11, if applicable) minus (2) the Principal portion of the Conversion Amount subject to redemption or Designated Redemption Amount pursuant to which the Holder delivered a notice voiding redemption. The Holder's delivery of a notice voiding a Redemption Notice and exercise of its rights following such notice shall not affect the Company's obligations to make any payments of Late Charges which have accrued prior to the date of such Redemption Notice with respect to the Conversion Amount subject to such notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Redemption by Other Holders</u>. Upon the Company's receipt of notice from any of the holders of the Other Notes for redemption or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b) or Section **Error! Reference source not found.** (each, an "**Other Redemption Notice**"), the Company shall immediately, but no later than one (1) Business Day after its receipt thereof, forward to the Holder by electronic mail a copy of such Other Redemption Notice. If the Company receives a Redemption Notice and one or more Other Redemption Notices, during the seven (7) Business Day period beginning on and including the date which is two (2) Business Days prior to the Company's receipt of the Holder's applicable Redemption Notice and ending on and including the date which is two (2) Business Days after the Company's receipt of the Holder's applicable Redemption Notice and the Company is unable to redeem all principal, interest and other amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata amount from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven (7) Business Day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>VOTING RIGHTS</u>. The Holder shall have no voting rights as the holder of this Note, except as required by law and as expressly provided in this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>COVENANTS</u>. Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with their terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Rank</u>. All payments due under this Note shall rank *pari passu* with all Other Notes and all other unsecured Indebtedness of the Company and its Subsidiaries; provided that if the Company incurs additional Indebtedness (the "**Additional Debt**") following the Subscription Date which Indebtedness is guaranteed by any of its Subsidiaries, at the option of the Holder, this Note shall be guaranteed and secured, as applicable, on substantially the same basis as the Additional Debt and rank *pari passu* with such Additional Debt; provided further, that the Holder shall enter into substantially the same credit support and security documents as the lender of such Additional Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existence of Liens</u>. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other encumbrance (collectively, "**Liens**") upon any Note Purchased SOL.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restricted Payments and Investments</u>. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (other than the Notes) whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness or make any Investment, as applicable, if at the time such payment with respect to such Indebtedness and/or Investment, as applicable, is due or is otherwise made or, after giving effect to such payment, (i) an event constituting an Event of Default has occurred and is continuing or (ii) an event that with the passage of time and without being cured would constitute an Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Restriction on Redemption and Cash Dividends</u>. Until the later of (A) the Additional Closing Expiration Date (as defined in the Securities Purchase Agreement), and (B) such date no Notes remain outstanding, the Company shall not, directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent of the Holder, except (i) in the case of cash dividends where (A) at the time the dividend is declared, the value of the Company's "**Liquid Assets**" being cash, cash equivalents and digital assets has been 175% or greater of the Company's Indebtedness for 15 of the 20 Trading Days preceding the date of declaration, and (B) such dividend, together with any other cash dividends paid over the course of the 12 preceding months, does not exceed 15% of the value of the Company's Liquid Assets as of the date of declaration, and (ii) the Company shall not declare any dividend that would be payable in Note Purchased SOL. The Holder shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Restriction on Transfer of Assets</u>. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, sell, lease, license, assign, transfer, spin-off, split-off, close, convey or otherwise dispose of any Note Purchased SOL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Change in Nature of Business</u>. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, engage in any material line of business outside of the cryptocurrency and digital asset industry; provided that expanding operations into jurisdictions where the Company or any Subsidiary's business becomes legal or permitted after the date hereof shall not be deemed to be a breach hereof. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly, modify its or their corporate structure or purpose other than in the circumstances contemplated by paragraphs (i), (ii), and (iii) of the definition of "Change of Control".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Preservation of Existence, Etc.</u> The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, material rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Maintenance of Properties, Etc.</u> The Company shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear excepted, and comply, and cause each of its Subsidiaries to materially comply, at all times with the provisions of all leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Maintenance of Intellectual Property</u>. The Company will, and will cause each of its Subsidiaries to, take all action necessary or advisable to maintain all of the Intellectual Property Rights (as defined in the Securities Purchase Agreement) of the Company and/or any of its Subsidiaries that are necessary or material to the conduct of its business in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Maintenance of Insurance</u>. The Company shall maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Transactions with Affiliates</u>. Other than in respect of transactions between the Company and its Subsidiaries and other than the loan from Antanas Guoga to the Company as described in the Company's continuous disclosure documents filed with Canadian securities regulatory authorities, the Company shall not, nor shall it permit any of its Subsidiaries to, enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any affiliate, except transactions in the ordinary course of business in a manner and to an extent consistent with past practice and necessary or desirable for the prudent operation of its business, or for fair consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in a comparable arm's length transaction with a Person that is not an affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Restricted Issuances</u>. Until the later of (A) the Additional Closing Expiration Date (as defined in the Securities Purchase Agreement), and (B) such date no Notes remain outstanding, the Company will not, directly or indirectly, without the prior written consent of the Required Holders (as defined in the Securities Purchase Agreement), (i) issue any Notes (as such term is defined in the Securities Purchase Agreement), other than as contemplated by the Securities Purchase Agreement and the Notes) or (ii) issue any other securities that would cause a breach or default under the Notes. For the avoidance of doubt, without limiting any term or condition of the Notes, nothing in this Section 13(l) shall otherwise limit the issuance by the Company of any other Indebtedness to any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Stay, Extension and Usury Laws</u>. To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law (wherever or whenever enacted or in force) that may affect the covenants or the performance of this Note; and (B) expressly waives all benefits or advantages of any such law and agrees that it will not, by resort to any such law, hinder, delay or impede the execution of any power granted to the Holder by this Note, but will suffer and permit the execution of every such power as though no such law has been enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Taxes</u>. The Company and its Subsidiaries shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any related interest or penalties) now or hereafter imposed or assessed against the Company and its Subsidiaries or their respective assets or upon their ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising therefrom (except where the failure to pay would not, individually or in the aggregate, have a material effect on the Company or any of its Subsidiaries). The Company and its Subsidiaries shall file on or before the due date therefor all personal property tax returns (except where the failure to file would not, individually or in the aggregate, have a material effect on the Company or any of its Subsidiaries). Notwithstanding the foregoing, the Company and its Subsidiaries may contest, in good faith and by appropriate proceedings, taxes for which they maintain adequate reserves therefor in accordance with IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Available Cash Test; Announcement of Operating Results</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Available Cash Test</u>. At any time any Notes remains outstanding, the Company's Available Cash as of the last Business Day of each calendar month, commencing with May 31, 2025 (as applicable, each an "**Available Cash Test Measuring Date**"), shall equal or exceed $1,000,000 (or the Canadian dollar equivalent thereof) (the "**Available Cash Test**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Financial Covenant Notices</u>. Commencing on the Issuance Date, the Company shall publicly disclose and disseminate (such date, the "**Announcement Date**"), if the Financial Test fails to be satisfied (each such failure, a "**Financial Covenant Failure**"), a statement to that effect no later than the fifteenth (15th) Business Day after the end of such Fiscal Quarter or Fiscal Year, as applicable, and such announcement shall include a statement to the effect that a Financial Covenant Failure by the Company exists (or does not exist, as applicable) for such Fiscal Quarter. On the Announcement Date, the Company shall also provide to the Holder a certification, executed on behalf of the Company by the Chief Financial Officer of the Company, certifying that the Company satisfied the Financial Test for such Fiscal Quarter or Fiscal Year, as applicable, if that is the case. If a Financial Covenant Failure by the Company exists for a Fiscal Quarter, on or prior to the Announcement Date, the Company shall provide to the Holders a written certification, executed on behalf of the Company by the Chief Financial Officer of the Company, certifying that a Financial Covenant Failure exists for such Fiscal Quarter or Fiscal Year, as applicable (a "**Financial Covenant Event Notice**"). Concurrently with the delivery of each Financial Covenant Event Notice to the Holders, the Company shall also make publicly available (as part of a Material Change Report (as defined below), or otherwise) the Financial Covenant Event Notice and the fact that an Event of Default has occurred under the Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Independent Investigation</u>. At the request of the Holder at any time when an Event of Default has occurred and is continuing, the Company shall hire an independent, reputable investment bank selected by the Company and approved by the Holder to investigate as to whether any breach of this Note has occurred (the "**Independent Investigator**"). If the Independent Investigator determines that such breach of this Note has occurred, the Independent Investigator shall notify the Company of such breach and the Company shall deliver written notice to each holder of a Note of such breach. In connection with such investigation, the Independent Investigator may, during normal business hours, inspect all contracts, books, records, personnel, offices and other facilities and properties of the Company and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the records of its legal advisors and accountants (including the accountants' work papers) and any books of account, records, reports and other papers not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary privilege, and the Independent Investigator may make such copies and inspections thereof as the Independent Investigator may reasonably request. The Company shall furnish the Independent Investigator with such financial and operating data and other information with respect to the business and properties of the Company as the Independent Investigator may reasonably request. The Company shall permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and furnish advice with respect thereto to, the Company's officers, directors, key employees and independent public accountants or any of them (and by this provision the Company authorizes said accountants to discuss with such Independent Investigator the finances and affairs of the Company and any Subsidiaries), all at such reasonable times, upon reasonable notice, and as often as may be reasonably requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>AMENDING THE TERMS OF THIS NOTE</u>. Except for Section 3(d)(i) and this Section 14, which may not be amended, modified or waived by the parties hereto, the prior written consent of the Holder shall be required for any change, waiver or amendment to this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>TRANSFER</u>. Subject to 2(g) of the Securities Purchase Agreement, this Note and any Common Shares issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company, provided that (a) only 75% of the then outstanding Principal may be transferred and in connection with such a transfer, the voting rights attaching to the transferred portion of the Notes shall continue to be exercised by the original Holder, (b) the Holder shall not be permitted to transfer any portion of the Note to any person or company the Company reasonably determines is competitive with the Company; and (c) the Common Shares shall bear any applicable legend as set forth in Section 5(c) of the Securities Purchase Agreement or pursuant to **<u>Exhibit I</u>**. Notwithstanding the foregoing, there shall be no restrictions on transfer (i) following an Event of Default, or (ii) to any Affiliates of the Required Holders or any Persons managed by the Required Holders.

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16. <u>REISSUANCE OF THIS NOTE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer</u>. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 16(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 16(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Note</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 16(d)) representing the outstanding Principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Note Exchangeable for Different Denominations</u>. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 16(d) and in principal amounts of at least $1,000) representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Notes</u>. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 16(a) or Section 16(c), the Principal designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest and Late Charges on the Principal and Interest of this Note (or in the case of a new Note being issued pursuant to Section 16(a) or Section 16(c), accrued and unpaid Interest and Late Charges applicable to such new Note, when added to the Interest and Late Charges applicable to such other new Notes issued in connection with such issuance, does not exceed the accrued and unpaid Interest and Late Charges applicable to this Note immediately prior to such issuance of new Notes), from the Issuance Date.

<u>17.</u> <u>REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.</u> The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder's right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. No failure on the part of the Holder to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Holder of any right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. In addition, the exercise of any right or remedy of the Holder at law or equity or under this Note or any of the documents shall not be deemed to be an election of Holder's rights or remedies under such documents or at law or equity. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security. The Company shall provide all information and documentation to the Holder that is reasonably requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Note (including, without limitation, compliance with Section 7).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS; COSTS OF AMENDMENTS, MODIFICATIONS OR WAIVERS</u>. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors' rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys' fees and disbursements. The costs (including, without limitation, and legal fees or expenses of any counsel(s) to the Holder) of any amendment, modification or waiver of this Note shall be paid by the Company. The Company expressly acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price paid for this Note was less than the original Principal amount hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>CONSTRUCTION; HEADINGS</u>. This Note shall be deemed to be jointly drafted by the Company and the initial Holder and shall not be construed against any such Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Note instead of just the provision in which they are found. Unless expressly indicated otherwise, all section references are to sections of this Note. Terms used in this Note and not otherwise defined herein, but defined in the other Transaction Documents, shall have the meanings ascribed to such terms on the Issuance Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>FAILURE OR INDULGENCE NOT WAIVER</u>. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof in respect of future opportunities to exercise any such power, right or privilege, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. Notwithstanding the foregoing, nothing contained in this Section 20 shall permit any waiver of any provision of Section 3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>DISPUTE RESOLUTION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Submission to Dispute Resolution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the case of a dispute relating to a Closing Bid Price, a Closing Sale Price, a Conversion Price, or a fair market value or the arithmetic calculation of a Conversion Rate, or the applicable Redemption Price (as the case may be) (including, without limitation, a dispute relating to the determination of any of the foregoing), the Company or the Holder (as the case may be) shall submit the dispute to the other party via electronic mail. If the Holder and the Company are unable to promptly resolve such dispute relating to such Closing Bid Price, such Closing Sale Price, such Conversion Price, or such fair market value, or the arithmetic calculation of such Conversion Rate, or such applicable Redemption Price (as the case may be), at any time after the second (2nd) Business Day following such initial notice by the Company or the Holder (as the case may be) of such dispute to the Company or the Holder (as the case may be), then the Holder may, at its sole option, select an independent, reputable investment bank reasonably acceptable to the Company, to resolve such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Holder and the Company shall each deliver to such investment bank (A) a copy of the initial dispute submission so delivered in accordance with the first sentence of this Section 21 and (B) written documentation supporting its position with respect to such dispute, in each case, no later than 5:00 p.m. (New York time) by the fifth (5<sup>th</sup>) Business Day immediately following the date on which the Holder selected such investment bank (the "**Dispute Submission Deadline**") (the documents referred to in the immediately preceding clauses (A) and (B) are collectively referred to herein as the "**Required Dispute Documentation**") (it being understood and agreed that if either the Holder or the Company fails to so deliver all of the Required Dispute Documentation by the Dispute Submission Deadline, then the party who fails to so submit all of the Required Dispute Documentation shall no longer be entitled to (and hereby waives its right to) deliver or submit any written documentation or other support to such investment bank with respect to such dispute and such investment bank shall resolve such dispute based solely on the Required Dispute Documentation that was delivered to such investment bank prior to the Dispute Submission Deadline). Unless otherwise agreed to in writing by both the Company and the Holder or otherwise requested by such investment bank, neither the Company nor the Holder shall be entitled to deliver or submit any written documentation or other support to such investment bank in connection with such dispute (other than the Required Dispute Documentation).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company and the Holder shall cause such investment bank to determine the resolution of such dispute and notify the Company and the Holder of such resolution no later than ten (10) Business Days immediately following the Dispute Submission Deadline. The fees and expenses of such investment bank shall be borne solely by the Company, unless the determination made such investment bank differs by 5% or more (in the Company's favour) from the Holder's position, in which case such fees and expenses shall be borne solely by the Holder, and such investment bank's resolution of such dispute shall be final and binding upon all parties absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Miscellaneous</u>. The Company expressly acknowledges and agrees that (i) this Section 21 constitutes an agreement to arbitrate between the Company and the Holder (and constitutes an arbitration agreement) under § 7501, et seq. of the New York Civil Practice Law and Rules ("**CPLR**") and that the Holder is authorized to apply for an order to compel arbitration pursuant to CPLR § 7503(a) in order to compel compliance with this Section 21, (ii) the terms of this Note and each other applicable Transaction Document shall serve as the basis for the selected investment bank's resolution of the applicable dispute, such investment bank shall be entitled (and is hereby expressly authorized) to make all findings, determinations and the like that such investment bank determines are required to be made by such investment bank in connection with its resolution of such dispute and in resolving such dispute such investment bank shall apply such findings, determinations and the like to the terms of this Note and any other applicable Transaction Documents, (iii) the Holder (and only the Holder), in its sole discretion, shall have the right to submit any dispute described in this Section 21 to any state or federal court sitting in The City of New York, Borough of Manhattan in lieu of utilizing the procedures set forth in this Section 21 and (iv) nothing in this Section 21 shall limit the Holder from obtaining any injunctive relief or other equitable remedies (including, without limitation, with respect to any matters described in this Section 21).

22. <u>NOTICES; CURRENCY; PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company will give written notice to the Holder (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment. The Company will comply with applicable securities laws and the rules of any exchange on which the Common Shares trade with respect to providing notice of record dates for dividends and the right to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Currency</u>. All dollar amounts referred to in this Note are in United States Dollars ("**$**"), and all amounts owing under this Note shall be paid in United States Dollars. All amounts denominated in other currencies (if any) shall be converted into the Canadian Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. "**Exchange Rate**" means, in relation to any amount of currency to be converted into Canadian Dollars pursuant to this Note, the Canadian Dollar exchange rate as published by the Bank of Canada on the relevant date of calculation (it being understood and agreed that where an amount is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period of time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payments</u>. Whenever any payment of cash is to be made by the Company to any Holder pursuant to this Note, unless otherwise expressly set forth herein, such payment shall be made in Canadian Dollars by wire transfer of immediately available funds pursuant to the Holder's wire transfer instructions previously provided. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day. Any amount of Principal or other amounts due under the Transaction Documents which is not paid when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at the Default Rate from the date such amount was due until the same is paid in full or such failure or default is cured or waived, as applicable (each, a "**Late Charge**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>CANCELLATION</u>. After all Principal, accrued Interest, Late Charges and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>WAIVER OF NOTICE</u>. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>GOVERNING LAW</u>. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any provision of law or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Except as otherwise required by Section 21 above, the Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. A final judgment in any such suit, action or proceeding brought in any such court shall be conclusive and binding upon the Company and may be enforced in any other courts to whose jurisdiction the Company is or may be subject, by suit upon judgment. The Company hereby appoints C T Corporation System (28 Liberty Street, New York, NY 10005) as its agent for service of process in New York, provided that the Company shall be permitted to change such appointment on written notice to the Holder. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein (i) shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder or (ii) shall limit, or shall be deemed or construed to limit, any provision of Section 25. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. The choice of the laws of the State of New York as the governing law of this Note is a valid choice of law and would be recognized and given effect to in any action brought before a court of competent jurisdiction in Canada, except for those laws (i) which such court considers to be procedural in nature, (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public policy, as such term is interpreted under the laws of Canada. The choice of laws of the State of New York as the governing law of this Note will be honored by competent courts in the province of Ontario, Canada, subject to compliance with relevant Ontario civil procedural requirements. The Company or any of its properties, assets or revenues does not have any right of immunity, or to the extent that the Company or any of its properties, assets, or revenues may have or may hereafter become entitled to any such right of immunity the Company hereby waives such right to the extent permitted by law, under Canadian or New York law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any Canadian, New York or United States federal court, from service of process, attachment upon or prior to judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Note; and, to the extent that the Company or any of its properties, assets or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which proceedings may at any time be commenced, the Company hereby waives such right to the extent permitted by law and hereby consents to such relief and enforcement as provided in this Note and the other Transaction Documents.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>JUDGMENT CURRENCY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If for the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 26 referred to as the "**Judgment Currency**") an amount due in Canadian Dollars under this Note, the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the date actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction that will give effect to such conversion being made on such date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 26(a)(ii) being hereinafter referred to as the "**Judgment Conversion Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If in the case of any proceeding in the court of any jurisdiction referred to in Section 26(a)(ii) above, there is a change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of Canadian Dollars which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. <u>SEVERABILITY</u>. If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. <u>MAXIMUM PAYMENTS</u>. Without limiting Section 9(d) of the Securities Purchase Agreement, nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Holder and thus refunded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>CERTAIN DEFINITIONS</u>. For purposes of this Note, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**1933 Act**" means the United States Securities Act of 1933, as amended, and the rules and regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**1934 Act**" means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Affiliate**" means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power directly or indirectly either to vote 10% or more of the shares having ordinary voting power for the election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Attribution Parties**" means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial ownership or control,

whether directly or indirectly, of the Company's Common Shares would or could be

aggregated with the Holder's and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act and the provisions of the *Securities Act* (Ontario). For clarity, the purpose

of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Available Cash**" means, with respect to any date of determination, an amount equal to the aggregate amount of the Cash of the Company and its Subsidiaries (excluding for this purpose cash held in restricted accounts or otherwise unavailable for unrestricted use by the Company or any of its Subsidiaries for any reason) as of such date of determination held in bank accounts of financial banking institutions, which shall include Coinbase, in the United States of America or Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York or the Province of Ontario are authorized or required by law to remain closed; <u>provided</u>, <u>however</u>, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York or the Province of Ontario generally are open for use by customers on such day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**$**" means the lawful money of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Cash**" of the Company and its Subsidiaries on any date shall be determined from such Persons' books maintained in accordance with IFRS, and means, without duplication, the cash and cash equivalents accrued by the Company and its wholly owned, direct and indirect Subsidiaries on a consolidated basis on such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Change of Control**" means any Fundamental Transaction other than (i) any merger of the Company or any of its, direct or indirect, wholly-owned Subsidiaries with or into any of the foregoing Persons, (ii) any reorganization, recapitalization or reclassification of the Common Shares in which holders of the Company's voting power immediately prior to such reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification, or (iii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Closing Bid Price**" and "**Closing Sale Price**" means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the CSE, as reported by Bloomberg, or, if the CSE begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as the case may be) then the last bid price or last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the CSE is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported on The OTCQX Market (or a similar organization or agency succeeding to its functions of reporting prices). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 21. All such determinations shall be appropriately adjusted for any share splits, share dividends, share combinations, recapitalizations or other similar transactions during such period in accordance with Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Common Shares**" means common shares in the capital of the Company as constituted as of the date hereof, provided that in the event of a subdivision, redivision, reduction, combination or consolidation thereof or any other adjustment under Section 7 herein, or successive such subdivisions, redivisions, reductions, combinations, consolidations or other adjustments, then subject to the adjustments, if any, having been made in accordance with the provisions of this Note, "**Common Shares**" shall thereafter mean the shares, other securities or other property resulting from such subdivision, redivision, reduction, combination or consolidation or other adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Convertible Securities**" means any shares or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**CSE**" means the Canadian Securities Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Default Rate**" means ten percent (10%) per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select Market, the Nasdaq Global Market, the Toronto Stock Exchange, or the CSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Fiscal Quarter**" means each of the fiscal quarters adopted by the Company for financial reporting purposes that correspond to the Company's fiscal year as of the date hereof that ends on December 31.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Fiscal Year**" means the fiscal year adopted by the Company for financial reporting purposes as of the date hereof that ends on September 30.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Fundamental Transaction**" means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or have its Common Shares be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is accepted by the holders of at least either (x) 50% of the outstanding Common Shares, (y) 50% of the outstanding Common Shares calculated as if any Common Shares held by all Subject Entities making or party to, or Affiliated with any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of Common Shares such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding Common Shares, or (iv) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding Common Shares, (y) at least 50% of the outstanding Common Shares calculated as if any Common Shares held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock or share purchase agreement or other business combination were not outstanding; or (z) such number of Common Shares such that the Subject Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding Common Shares, or (v) reorganize, recapitalize or reclassify its Common Shares, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding Common Shares, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Shares, (y) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Shares not held by all such Subject Entities as of the date of this Note calculated as if any Common Shares held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting power represented by issued and outstanding Common Shares or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction requiring other shareholders of the Company to surrender their Common Shares without approval of the shareholders of the Company or (C) directly or indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Group**" means a "group" as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**IFRS**" means International Financial Reporting Standards principles, consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Indebtedness**" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Maturity Date**" shall mean [ ]<sup>1</sup>; provided, however, the Maturity Date may be extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default shall have occurred and be continuing or any event shall have occurred and be continuing that with the passage of time and the failure to cure would result in an Event of Default or (ii) through the date that is twenty (20) Business Days after the consummation of a Fundamental Transaction in the event that a Fundamental Transaction is publicly announced prior to the Maturity Date, provided further that if a Holder elects to convert some or all of this Note pursuant to Section 3 hereof, and the Conversion Amount would be limited pursuant to Section 3(d) hereunder, the Maturity Date shall automatically be extended until such time as such provision shall not limit the conversion of this Note.

_______________________________<br><sup>1</sup> Insert thirty-six month anniversary of Issuance Date

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Note Purchased SOL**" means SOL acquired by the Company using the proceeds received in respect of issuance of this Note, which shall be reflected from time to time on the register of Note Purchased SOL maintained by the Company in respect of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Options**" means any rights, warrants or options to subscribe for or purchase Common Shares or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common shares or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Redemption Date**" means any Event of Default Redemption Date, Company Optional Redemption Date and/or Fundamental Transaction Redemption Date, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Redemption Notices**" means, collectively, the Event of Default Redemption Notices, the Company Optional Redemption Notices and the Fundamental Transaction Redemption Notices, and each of the foregoing, individually, a "**Redemption Notice**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **"Redemption Premium"** means 110%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Redemption Prices**" means, collectively, Event of Default Redemption Prices, the Fundamental Transaction Redemption Price, the Company Optional Redemption Prices, and each of the foregoing, individually, a "**Redemption Price**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**SEC**" means the United States Securities and Exchange Commission or the successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**Securities Purchase Agreement**" means that certain securities purchase agreement, dated as of the Subscription Date, by and among the Company and the initial holders of the Notes pursuant to which the Company issued the Notes, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Slashing Event**" means any event in which Note Purchased SOL or accrued Staking Interest is reduced as a consequence of penalties incurred from delegating such assets to the Company's validators.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**SOL**" means the native cryptocurrency of the Solana blockchain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**Staking Rewards**" means the total amount of SOL earned by the staking party from staking activities in respect of any Note Purchased SOL during any given calendar month, provided that, for greater certainty, Staking Rewards shall not include block rewards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**Subscription Date**" means April 23, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**Subsidiaries**" shall have the meaning as set forth in the Securities Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Subject Entity**" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**Trading Day**" means, as applicable, (x) with respect to all price or trading volume determinations relating to the Common Shares, any day on which the Common Shares are traded on the CSE, or, if the CSE is not the principal trading market for the Common Shares, then on the principal securities exchange or securities market on which the Common Shares are then traded, provided that "Trading Day" shall not include any day on which the Common Shares are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Shares are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) or (y) with respect to all determinations other than price determinations relating to the Common Shares, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**Unrestricted SOL**" means all SOL of the Company other than the Note Purchased Sol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**VWAP**" means, for any security as of any date, the dollar volume- weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded), during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg through its "VAP" function (set to 09:30 start time and 16:00 end time) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30 a.m., New York time, and ending at 4:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in The OTCQX Open Market (or a similar organization or agency succeeding to its functions of reporting prices). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 21. All such determinations shall be appropriately adjusted for any share dividend, share split, share combination, recapitalization or other similar transaction during such period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>DISCLOSURE</u>. Upon delivery by the Company to the Holder (or receipt by the Company from the Holder) of any notice in accordance with the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company or any of its Subsidiaries, the Company shall on or prior to 9:00 am, New York city time on the Business Day immediately following such notice delivery date, publicly disclose such material, non-public information with the CSA (as defined in the Securities Purchase Agreement) pursuant to a material change report filed with SEDAR+ (a "**Material Change Report**") or otherwise. In the event that the Company believes that a notice contains material, non-public information relating to the Company or any of its Subsidiaries, the Company so shall indicate to the Holder explicitly in writing in such notice (or immediately upon receipt of notice from the Holder, as applicable), and in the absence of any such written indication in such notice (or notification from the Company immediately upon receipt of notice from the Holder), the Holder shall be entitled to presume that information contained in the notice does not constitute material, non-public information relating to the Company or any of its Subsidiaries. Nothing contained in this Section 30 shall limit any obligations of the Company, or any rights of the Holder, under Section 4(k) of the Securities Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. <u>No Fiduciary; No Duty of Confidentiality</u>. The Company acknowledges and agrees that the Holder is not a fiduciary or agent of the Company and that the Holder shall have no obligation to maintain the confidentiality of any information provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>32.</u> <u>WITHHOLDING TAXES.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall be entitled to deduct or withhold from any consideration or amount otherwise payable or deliverable to the Holder hereunder, such amounts as the Company may reasonably determine are required to be deducted and withheld with respect to such payment under applicable law. Without limiting the generality of the foregoing, the parties shall use commercially reasonable efforts to cooperate to mitigate or eliminate any such withholding to the maximum extent permitted by applicable law. The Company shall notify the Holder of its intent to withhold at least five (5) business days prior to the relevant payment date with a written explanation substantiating the requirement to deduct or withhold. To the extent that amounts are so deducted or withheld, such deducted or withheld amounts shall be treated for all purposes hereof as having been paid to the Holder, in respect of which such deduction or withholding was made, provided that such deducted or withheld amounts are actually remitted to the appropriate government authority. To the extent that the amount so required to be deducted or withheld from any payment to the Holder exceeds the cash component, if any, of the consideration otherwise payable to such person, the Company is hereby authorized to sell or otherwise dispose of any portion of the SOL comprising the Staking Interest as is necessary to provide sufficient funds to the Company to enable it to comply with such deduction or withholding requirement, and the Company shall notify the Holder thereof and remit the applicable portion of the net proceeds of such sale (after deduction of all fees, commissions or costs in respect of such sale) to the appropriate government authority and shall remit to such holder any unapplied balance of the net proceeds of such sale. Any sale will be made at prevailing market prices and the Company shall not be under any obligation to obtain or indemnify the Holder in respect of a particular price for the SOL comprising the Staking Interest so sold.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any and all payments made by or on behalf of the Company or any other person under this Note or any other Transaction Document (including any issuance of shares or other securities, or the delivery of any other property, pursuant to this Note or any other Transaction Document) shall be made free and clear of, and without deduction or withholding for or on account of, any taxes; provided, that if the Company or such other person shall be required by applicable law to deduct or withhold any taxes from such payments (such taxes required to be deducted or withheld, "**Indemnified Taxes**"), then the Company or such other Person shall (a) pay the Holder such additional amounts as may be necessary so that after making or allowing for all required withholdings and deductions for taxes (including withholdings and deductions applicable to additional amounts payable under this section), the Holder has received or receives an amount equal to that which the Holder would have had or received had no such withholdings or deductions been required (and, for greater certainty, where the payment is the issuance of shares or other securities of the Company or any other Person, or any other property, such that the Holder receives such shares, securities or other property as if no withholding or deduction for taxes had been imposed, and such that the Company or such other Person fully bears any such taxes); (b) timely remit such taxes directly to the relevant governmental authority; and (c) furnish to the Holder, within a reasonable time, a copy of a receipt issued by such governmental authority evidencing such remittance, a copy of the return reporting such remittance or other evidence of such remittance reasonably satisfactory to the Holder. For greater certainty, for the purposes of this Section 32, the Holder shall include any successor of the Holder and any transferee and assignee in respect of the Holder in respect of this Note or any of the other Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall indemnify and hold harmless the Holder within fifteen (15) Business Days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 32), and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate setting forth in reasonable detail the basis and calculation of the amount of such payment or liability delivered to the Company by the Holder shall be conclusive absent manifest error. For greater certainty, "Indemnified Taxes" will include any taxes imposed under Part XIII of the *Income Tax Act* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary in this Note or any otherTransaction Document, the provisions of this Section 32 shall survive the conversion, redemption, prepayment, termination or cancellation of this Note or any other Transaction Document, as applicable, and any transfer by a Holder of this Note or any Warrant or its rights under any Transaction Document, and will apply, *mutatis mutandis*, to any Successor Entity to the Company or any of its Subsidiaries.

*[signature page follows]*

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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date set out above.

**SOL STRATEGIES, INC.**

By: ________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:

*Convertible Note - Signature Page*

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**EXHIBIT I**

**SOL STRATEGIES, INC.**

**CONVERSION NOTICE**

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| | | |
|:---|:---|:---|
| **TO:** | **SOL STRATEGIES, INC.** | **SOL STRATEGIES, INC.** |
| **ATTN:** | **[** | **]** |

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Reference is made to the Convertible Note (the "**Note**") issued to the undersigned by Sol Strategies, Inc.., a corporation incorporated under the laws of the Province of Ontario, Canada (the "**Company**"). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into common shares (the "**Common Shares**"), of the Company, as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note.

Date of

Conversion: ____________________________________________________________________________

Principal to be converted: ________________________________________________________________

Accrued and unpaid Interest and <br>accrued and unpaid Late Charges <br>with respect to such portion of the <br>Principal and such Interest to be <br>converted: ________________________________________________________________

AGGREGATE CONVERSION

AMOUNT TO BE CONVERTED: ________________________________________________________________

Please confirm the following information:

Conversion Price: ________________________________________________________________________

Number of Common Shares to be issued: ________________________________________________________________

Check here if requesting delivery of such Common Shares as a certificate pursuant to the following instructions:

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| | | |
|:---|:---|:---|
| **Registration Instructions** | **Address for Delivery** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Number of**<br>**Common Shares** |
| <\*><br>| <\*> | <\*> |

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| |
|:---|
| **Legends** |
| &nbsp;&nbsp; [To be included if Box B(4) below is checked]<br> "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) UNLESS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, OR (C) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY (I) RULE 144 OR (II) RULE 144A THEREUNDER, IF AVAILABLE AND IN COMPLIANCE WITH STATE SECURITIES LAWS OR (D) WITHIN THE UNITED STATES, WITH ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, PROVIDED, IN THE CASE OF AN OFFER, SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE OR OTHER TRANSFER PURSUANT TO C(I) OR (D), THE HOLDER SHALL HAVE PROVIDED TO THE COMPANY AN OPINION OF COUNSEL TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, WHICH OPINION AND COUNSEL MUST BE REASONABLY SATISFACTORY TO THE COMPANY. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA OR ELSEWHERE." |

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☐ Check here if requesting delivery of such Common Shares electronically with The Canadian Depository for Securities in connection with the resale of such Common Shares as follows:

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| | |
|:---|:---|
| Registration: | &nbsp;&nbsp;CDS&Co., 85 Richmond Street West, Toronto, ON |
| CDS Participant: | |
| CUID Number: | |
| Deposit ID: | |
| Contact Name,<br>Phone and E-mail: | |

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| | |
|:---|:---|
| ***NOTE TO BROKER: DEPOSIT SHOULD BE KEYED INTO CDS AS AN INSTANT DEPOSIT*** | ***NOTE TO BROKER: DEPOSIT SHOULD BE KEYED INTO CDS AS AN INSTANT DEPOSIT*** |
| ☐ | Check here if in connection with the resale of such Common Shares (x) pursuant to an effective registration statement under the 1933 Act or (y) pursuant to Rule 144 and the undersigned holder is requesting delivery with the Depository Trust Company by Deposit/Withdrawal at Custodian: |

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| | |
|:---|:---|
| Registration: | CEDE & Co., 55 Water St. New York, NY 10041 |
| Participant/Broker: |  |
| DTC#: |  |
| DWAC Control Number: |  |
| Contact Name, Phone & Email: |  |

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<u>Additional Representations and Warranties:</u>

---

| | | |
|:---|:---|:---|
| ☐ | A. Check one of the following if the Note **<u>is not</u>** being exercised by, or for the account or benefit of a "U.S. Person" (as defined in Regulation S of the 1933 Act, "**Regulation S**")) or a Person in the United States (as defined in Regulation S) and the undersigned holder represents, warrants and certifies as follows ***((<u>one only) of the following must be checked</u>)***: | A. Check one of the following if the Note **<u>is not</u>** being exercised by, or for the account or benefit of a "U.S. Person" (as defined in Regulation S of the 1933 Act, "**Regulation S**")) or a Person in the United States (as defined in Regulation S) and the undersigned holder represents, warrants and certifies as follows ***((<u>one only) of the following must be checked</u>)***: |
|  | ☐ | 1. The undersigned holder is requesting delivery with The Canadian Depository for Securities in connection with the resale of such Common Shares. |
|  | ☐ | 2. The undersigned holder is requesting delivery with the Depository Trust Company by Deposit/Withdrawal at Custodian pursuant to an effective registration statement under the 1933 Act. |
|  | ☐ | 3. The undersigned holder is requesting delivery with the Depository Trust Company by Deposit/Withdrawal at Custodian in connection with the resale of such Common Shares pursuant to Rule 144, the undersigned holder has attached hereto a customary representation letter of the undersigned holder, in form and substance reasonably acceptable to the Company, that such resales are then permitted pursuant to Rule 144, without a restrictive legend, and the undersigned holder has not been solicited to convert the Note by any Person, or if the undersigned holder has been solicited to convert the Note, the undersigned holder has confirmed that no commission or remuneration has been or will be paid or given, directly or indirectly, for soliciting such conversion, and the undersigned holder acknowledges that the Company is also relying on the registration exemption provided by Section 3(a)(9) of the 1933 Act to issue the Common Shares. |

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| | | |
|:---|:---|:---|
|  | ☐ | 4. The undersigned holder is requesting certificated delivery. |
| ☐ | B. Check one of the following if the Note **<u>is</u>** being converted by a holder in the United States or by, or for the account or benefit of a "U.S. Person" (as defined in Regulation S of the 1933 Act) or a Person in the United States (as defined in Regulation S), the undersigned holder represents, warrants and certifies as follows ***((<u>one only) of the following must be checked</u>)***: | B. Check one of the following if the Note **<u>is</u>** being converted by a holder in the United States or by, or for the account or benefit of a "U.S. Person" (as defined in Regulation S of the 1933 Act) or a Person in the United States (as defined in Regulation S), the undersigned holder represents, warrants and certifies as follows ***((<u>one only) of the following must be checked</u>)***: |
|  | ☐ | 1. The undersigned holder is requesting delivery with The Canadian Depository for Securities in connection with the resale of such Common Shares pursuant to Rule 904 of Regulation S in an offshore transaction (as such term is defined in Regulation S) and such undersigned holder has duly executed and attached hereto the Rule 904 of Regulation S declaration attached to the Securities Purchase Agreement as Schedule D. |
|  | ☐ | 2. The undersigned holder is requesting delivery with the Depository Trust Company by Deposit/Withdrawal at Custodian pursuant to an effective registration statement under the 1933 Act. |
|  | ☐ | 3. The undersigned holder is requesting delivery with the Depository Trust Company by Deposit/Withdrawal at Custodian in connection with the resale of such Common Shares pursuant to Rule 144, and the undersigned holder has attached hereto a customary representation letter of the undersigned holder, in form and substance reasonably acceptable to the Company, that such resales are then permitted pursuant to Rule 144 without a restrictive legend, and the undersigned holder has not been solicited to convert the Note by any Person, or if the undersigned holder has been solicited to convert the Note, the undersigned holder has confirmed that no commission or remuneration has been or will be paid or given, directly or indirectly, for soliciting such conversion, and the undersigned holder acknowledges that the Company is also relying on the registration exemption provided by Section 3(a)(9) of the 1933 Act to issue the Common Shares. |
|  | ☐ | 4. The undersigned holder is requesting certificated delivery and acknowledges and agrees that the Common Shares issued upon the conversion of the Note will continue to have a U.S. restrictive legend. |

---

Date: _____________ __, ___________

_________________________________<br>Name of Registered Holder

------

By: ___________________________

Name:

Title:

Tax ID:_____________________

Facsimile:___________________

E-mail Address:

------

**Exhibit B**

**SOL STRATEGIES, INC.**

**<u>TREASURY DIRECTION</u>** <br>

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| | |
|:---|:---|
| **Effective Date of Issuance:** | [Insert Date] |
| Transfer Agent: | TSX Trust Company<br>301 - 100 Adelaide Street West<br>Toronto, ON M5H 4H1 |

---

You are hereby authorized and directed to issue <u>[insert # of securities to be issued]</u> fully paid <u>(Class of Securities)</u> of **CUSIP** <u>[Insert CUSIP #]</u> in accordance with the instructions provided below.

We certify that these securities have been validly allotted to the noted parties, that the company has received full consideration therefore, and that they are, therefore, fully paid and non-assessable. We further certify that the issuance of these securities is not in violation of any applicable laws or regulations, including applicable securities laws and regulations, and exchange regulations.

We confirm that, following the issuance of this direction, the issued & outstanding will be **<u>[number of issued and outstanding shares].</u>**

***<u>[For Issuance of Certificate or Direct Registration Statement:</u>***

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Registration Name** | **Registration**<br>**Address** | **\*Delivery**<br>**Address &**<br>**Method** | **Number of**<br>**Shares** | **Price per**<br>**Share** | **Certificate**<br>**or DRS** |
| **[John Smith, ABC**<br>**Company, Broker ITF**<br>**John Smith]** | **[301-100 Adelaide**<br>**Street W.,**<br>**Toronto, ON**<br>**M5H 4H1]** | **[Email**<br>**address if**<br>**issuing DRS]** | **[Number**<br>**of Shares]** | **[Price**<br>**per**<br>**Share]** |  |

---

***\*Provide email address for DRS to be sent via email (as applicable). If an email address is provided, TSX Trust will only send out DRS via email to securityholders. By providing direction to TSX Trust and by asking TSX Trust to send DRS by email to your securityholders, you confirm that you have received and maintain the consent of the securityholder to receive such DRS Transaction Advice/Statement and future issuer communications from TSX Trust, a third party, by email.***

**Canadian Legend:**

**WITHOUT PRIOR WRITTEN APPROVAL OF THE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL** **[date must be specified]**

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![](exhibit99-109x001.jpg)

**US Legend**

**THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, OR (B) OUTSIDE THE UNITED STATES TO A PERSON WHO IS NOT A "U.S. PERSON" (AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT) IN ACCORDANCE WITH AN APPLICABLE EXEMPTION UNDER THE U.S. SECURITIES ACT AND APPLICABLE LOCAL SECURITIES LAWS AND REGULATIONS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.]**

***<u>[For Issuance through Electronic Delivery:</u>***

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| | | | | |
|:---|:---|:---|:---|:---|
| **Registration** | **Address** | **Delivery Address & Method** | **No. of**<br>**Shares** | **Price per**<br>**Share** |
| **CDS & Co.** | **100 Adelaide Street W.**<br>**Toronto ON M5H 1S3** | **Electronic (NCI Issuance)**<br>**Participant:** **(Broker Name)**<br>**CUID: (Broker 4-digit identifier code)**<br>**Deposit ID: (A unique ID provided by the broker once the deposit is created in CDSX i.e. D12345-**<br>**67890)**<br>**Contact Name:** **(Name of the** **person coordinating the deposit at Broker)**<br>**Contact Number:** **(Contact details** **in the event TSXT needs to reach out)** |  |  |

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**Note:**

**∙ TSX Trust CUID: ETSZ**

**∙ Participant/Broker receiving the securities via CDS & Co. must create the deposit in CDSX and provide the deposit ID number (sample deposit ID number D12345-67890)**

**∙ CUSIP/ISIN must be made eligible for the participant to create the deposit in CDSX**

**∙ TSX Trust must receive information in red above to process the issuance and deposit of securities, including the deposit ID #]**

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**<u>Exhibit B</u>**

**Form of Leak-Out Agreement**

See attached.

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Sol Strategies, Inc.

217 Queen Street West, Suite 401

Toronto, Ontario, M5V 0R2, Canada

ATW SOLANA VENTURES SPV LLC

***[Redacted - Contact Information]<br>***

<br> May[__], 2025

Dear Sirs:

This agreement (this "**Agreement**") is being delivered to you in connection with that certain understanding by and between Sol Strategies Inc., a company incorporated under the laws of the province of Ontario, Canada with offices located at 217 Queen Street West, Suite 401, Toronto, Ontario M5V 0R2 (the "**Company**") and the undersigned ("**Holder**").

The Company and certain investors (including the Holder) have entered into a Securities Purchase Agreement, dated as of May [__], 2025 (the "**Securities Purchase Agreement**"), pursuant to which, among other things, the Company has agreed to issue and sell to the Holder and the Holder has agreed to purchase certain Notes (as defined in the Securities Purchase Agreement), which will be convertible into shares (the "**Conversion Shares**") of the Company's common shares, no par value per share (the "**Common Shares**"), in accordance with the terms of the Notes. Capitalized terms not defined herein shall have the meaning as set forth in the Securities Purchase Agreement.

During the period commencing on the date hereof ("**Execution Date**") and ending on the earlier to occur of (i) such date as the Holder and its Affiliates no longer hold any Notes (including, without limitation, any Additional Notes and any underlying Conversions Shares), or (ii) such date upon which any breach or default by the Company of any term of the Transaction Documents (including, without limitation, the occurrence of an Event of Default (as defined in the Notes)) or this Agreement occurs, regardless of whether such breach is subsequently cured (such period, the "**Restricted Period**"), the Holder shall not have Net Sales (as defined below) on any given Trading Day during such Restricted Period (each, an "**Applicable Trading Day**"), of any Common Shares then held by the Holder (the "**Restricted Securities**") in an aggregate amount representing more than the greater of (x) US $50,000 in aggregate sale price of Restricted Securities and (y) with respect to each trading market in which the Common Shares are then listed or quoted for trading (each, an "**Applicable Market**"), 10% of the daily aggregate trading volume of the Common Shares on such Applicable Market on such Applicable Trading Day, as reported by Bloomberg, LP ("**Bloomberg**") on such Applicable Trading Day (the "**Trading Limit**"); provided that the Trading Limit shall increase to 20% of the daily aggregate trading volume of the Common Shares, as reported by Bloomberg on any Applicable Trading Day on which the aggregate daily dollar trading volume (as reported on Bloomberg) of the Common Shares on the Applicable Market is greater than US $7,500,000. "**Net Sales**" means, with respect to any Applicable Trading Day, the gross number of Common Shares sold by the Holder on such Applicable Trading Day, minus the gross number of Common Shares purchased by the Holder on such Applicable Trading Day. Notwithstanding anything herein to the contrary, nothing herein shall prohibit the Holder from tendering any Restricted Securities or other securities to any Person in a tender offer or other Fundamental Transaction.

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Notwithstanding anything herein to the contrary, on or after the date hereof, the Holder may, directly or indirectly, sell or transfer all, or any part, of any Restricted Securities to any Person and may transfer the Notes in accordance with the terms thereof to any Person (an "**Assignee**") without complying with (or otherwise limited by) the restrictions set forth in this Agreement; provided, that as a condition to any such sale or transfer an authorized signatory of the Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Agreement (without the right of assignment in this paragraph) with respect to such Restricted Securities, as applicable (an "**Assignee Agreement**"), and sales of the Holder and its Affiliates and all Assignees shall be aggregated for all purposes of this Agreement and all Assignee Agreements. It shall be the responsibility of the Holder to monitor such Affiliate's and Assignee's compliance with the Assignee Agreement and this paragraph.

In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby authorized to decline to make any transfer of Common Shares if such transfer would constitute a violation or breach of this Agreement.

The Holder shall provide to the Company, on or before the third (3<sup>rd</sup>) Business Day of the end of each fiscal quarter, a report setting forth the gross amount of Restricted Securities purchased and sold by the Holder and its Affiliates on each Applicable Trading Day during the prior fiscal quarter.

From and after the occurrence, and during the continuance of the first two (2) breaches by the Holder of the Trading Limit hereunder, the Notes held by the Holder shall automatically cease accruing Staking Interest (as defined in the Notes) for one (1) calendar quarter (each such period, a "**Penalty Period**"). Thereafter, from and after the occurrence and during the continuance of any subsequent breaches by the Holder of the Trading Limit, the Notes held by the Holder shall automatically cease accruing Staking Interest for a Penalty Period of one (1) calendar year. For the avoidance of doubt, each Penalty Period is consecutive, may not overlap, and no breach shall trigger more than one (1) Penalty Period.

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Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and shall be given in accordance with the terms of the Securities Purchase Agreement.

The Company and the Holder each hereby represents and warrants that it has full power and authority to enter into this Agreement and that upon request of the other party, such party, will execute any additional documents necessary to ensurethe validity or enforcement of this Agreement.

This Agreement, together with the Securities Purchase Agreement, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto.

This Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.

The terms of this Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns.

This Agreement may not be amended or modified except in writing signed by each of the parties hereto.

All questions concerning the construction, validity, enforcement and interpretation of this letter agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.

Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this letter agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection with or arising out of this letter agreement or any transaction contemplated hereby.

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Each party hereto acknowledges that, in view of the uniqueness of the transactions contemplated by this letter agreement, the other parties hereto would not have an adequate remedy at law for money damages in the event that this Agreement has not been performed in accordance with its terms, and therefore agrees that such other parties shall be entitled to specific enforcement of the terms hereof in addition to any other remedy to which it may be entitled, at law or in equity.

The Company and Holder confirm that Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other holder of securities of the Company to be joined as an additional party in any proceeding for such purpose.

*[Signature Page to Follow]*

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Agreed to and Acknowledged:

**SOL STRATEGIES, INC.**

By: _____________________________

Name:

Title:

**ATW SOLANA VENTURES SPV LLC**

By: _____________________________

Name:

Title:

[SIGNATURE PAGE TO LEAK-OUT]

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**<u>Exhibit C</u>**

**Form of Administrative Fee Letter**

See attached.

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**Administrative Expense Reimbursement**

**Letter Agreement**

May 1, 2025

ATW Partners Opportunities Management, LLC

***[Redacted - Contact Information]***

Re: ATW Partners Opportunities Management, LLC Expense Reimbursement

Ladies and Gentlemen:

Reference is made to (a) that certain Securities Purchase Agreement dated as of April 23, 2025 (the "**Agreement**"), by and among Sol Strategies, Inc., company organized under the laws of the province of Ontario, Canada (the "**Company**"), and ATW SOLANA VENTURES SPV LLC (the "**Buyer**"); and (b) the other documents and agreements entered into in connection therewith (collectively, with the Agreement, the "**Transaction Documents**"), in connection with a transaction contemplated in the Transaction Documents (the "**Transaction**"). Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Agreement.

The Company hereby agrees to pay directly to ATW Partners Opportunities Management, LLC (the "**Manager**", and together with the Company and the Buyer, "**Parties**", and each individually, a "**Party**") for its own account, in its capacity as investment manager to the Buyer, a non- accountable amount, as set forth herein, to reimburse the Manager for expenses and the commitment of internal resources, certain legal and administrative obligations in connection with this Transaction, including, without limitation, diligence, legal, structuring and documentation, ongoing administration and maintenance, and other expenses incurred.

The reimbursement amount of $25,000.00 is due at the Initial Closing and an amount equal to $85,000 (the applicable amount being the "**Expense Reimbursement**") is due annually, in advance, until such time as there is no principal outstanding under the Note held by the Buyer and shall be fully earned when due, initially at the Initial Closing (as defined in the Agreement) and upon each subsequent anniversary of the Initial Closing provided there is principal outstanding under the Note on such date. The initial payment of the Expense Reimbursement is payable from the Purchase Price (as defined in the Agreement) to be paid by the Buyer to the Company at the Initial Closing.

The Buyer shall be permitted to withhold any Expense Reimbursement amount due and unpaid from the funding of Additional Closings; provided, however, that in the event the Buyer does not fund any Additional Closings, then on the Additional Closing Expiration Date such accrued but unpaid Expense Reimbursement amount will be deemed waived by the Manager.

For greater certainty, only one Expense Reimbursement shall be payable in respect of any one year period, regardless of the number of Additional Closings held during such period.

Failure of any Party to enforce any of the provisions of this letter agreement shall not be construed as a waiver of such provisions or of the right thereafter to enforce such provisions. If any provisions of this letter agreement shall be held to be invalid, void, or unenforceable, the remaining provisions hereof shall not be affected or impaired and such remaining provisions shall remain in full force and effect.

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This letter agreement has been prepared through the joint efforts of all of the parties. Neither the provisions of this letter agreement nor any alleged ambiguity shall be interpreted or resolved against any Party on the ground that such Party's counsel drafted this letter agreement, or based on any other rule of strict construction. Each of the parties hereto represents and declares that such Party has carefully read this letter agreement and that such Party knows the contents hereof and signs the same freely and voluntarily.

This letter agreement shall be binding on and shall inure to the benefit of the Manager and the Company and their respective successors and permitted assigns. This letter agreement may not be amended or waived except by an instrument signed by the Company and the Manager.

THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS LETTER AGREEMENT.

THIS LETTER AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED IN ALL RESPECTS BY, THE LAWS OF THE STATE OF NEW YORK.

Each party hereby irrevocably and unconditionally (a) submits for itself and its property in any legal action or proceeding relating to this letter agreement or for recognition and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, and appellate courts from any thereof and (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same.

This letter agreement may be executed in any number of counterparts, each of which when so executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument. Delivery of an executed counterpart of this letter agreement by fax or electronic mail shall have the same force and effect as the delivery of an original executed counterpart of this letter agreement.

[SIGNATURE PAGE TO FOLLOW]

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Please indicate your agreement with the foregoing terms and provision by countersigning this letter agreement and returning to us executed counterparts hereof.

Best regards,

**SOL STRATEGIES, INC.**

By: <u>______________________________________</u>

Name: Leah Wald

Title: Chief Executive Officer

Agreed and accepted to

as of the date first written above:

**ATW PARTNERS OPPORTUNITIES**

**MANAGEMENT, LLC**

By: ________________________________

Name: Antonio Ruiz-Gimenez

Title: Managing Partner

[Signature page - Administrative Expense Reimbursement Letter Agreement]

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## Exhibit 99.110

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**FORM 51-102F3**

**MATERIAL CHANGE REPORT**

**Item 1 - Name and Address:**

Sol Strategies Inc. ("**Sol Strategies**" or the "**Company**") 217 Queen Street West, Suite 401

Toronto, Ontario M5V 0R2

**Item 2 - Date of Material Change:**

May 1, 2025

**Item 3 - News Release:**

The new releases announcing the material change referred to in this report were disseminated over Newsfile on April 23, 2025 and May 1, 2025, and filed under the profile of the Company on the SEDAR+ website at <u>www.sedarplus.ca</u>.

**Item 4 - Summary of Material Change:**

On April 23, 2025, the Company announced the issuance of a convertible note facility of up to US$500 million (the "**Facility**") with an affiliate of ATW Partners Opportunities Management, LLC (the "**Investor**").

Pursuant to the Facility, on May 1, 2025, the Company issued convertible notes ("**Notes**") in the aggregate principal amount of US$20 million as its first tranche (the "**Initial Closing**"), with additional capacity of up to US$480 million available in subsequent drawdowns, subject to certain conditions.

Under the Facility, Interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies, as further described in the definitive agreements.

The Facility will be used by the Issuer to acquire SOL ("**Note Purchased SOL**") and to acquire SOL as a treasury asset for the Company's balance sheet or general corporate or working capital purposes.

**Item 5 - Full Description of Material Change:**

**5.1 Full Description of Material Change**

On April 23, 2025, the Company entered into a securities purchase agreement with an affiliate of ATW Partners Opportunities Management, LLC (the "**Investor**") pursuant to which the Company will issue convertible notes ("**Notes**") to the Investor under a facility of up to US$500 million (the "**Facility**").

Pursuant to the Facility, the Company today issued Notes in the aggregate principal amount of US$20 million as its first tranche (the "**Initial Closing**"). The Notes were issued at a price of US$1,000 for each US$1,000 of aggregate principal amount of Notes.

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The terms of the Facility are governed by securities purchase agreement (the "**SPA**") entered into with the Investors and the executed Note issued to Investor for the Initial Closing.

The financing will be used to acquire the Note Purchased SOL and to acquire SOL as a treasury asset for the Company's balance sheet or general corporate or working capital purposes.

The Notes will be convertible into common shares of the Company at the prevailing market price on the date prior to conversion, subject to the terms and conditions of the Notes and the Facility. The number of Common Shares issuable upon conversion of any Conversion Amount (as defined below) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (as defined below) then in effect (as (the "Conversion Rate"). The conversion may occur at the option of the Investor, at any time and from time to time, commencing on the date of issuance and ending on the Maturity Date (as defined in the Note).

"**Conversion Amount**" means the sum of (x) the portion of the Principal to be converted, redeemed or otherwise with respect to which this determination is being made and (y) all accrued and unpaid Interest with respect to such portion of the Principal amount and accrued and unpaid late charges with respect to such portion of such Principal and such interest, if any.

"**Conversion Price**" means, as of any date of conversion or other date of determination the last closing trade price of the Common Shares as of the trading day ended immediately prior to such date of determination, subject to adjustment as provided in the SPA.

During the term of the Note, the Note shall accrue staking interest (the "**Staking Interest**", and such aggregate amount accrued and unpaid to the Investor from time to time, each a "**Staking Interest Amount**") at any time the Company, directly or indirectly, is entitled to Staking Rewards (as defined below) with respect to the SOL purchased with the proceeds of the Facility (the "**Note Purchased SOL**") . Within three (3) Business Days of the end of each calendar month (as applicable, each, a "**Staking Interest Payment Date**"), the Company shall pay any outstanding accrued Staking Interest Amount as of such applicable Staking Interest Payment Date to the Investor in SOL to the wallet address provided by the Investor and such Staking Interest Amount shall be calculated based on the outstanding Principal.

"**Staking Rewards**" means the total amount of SOL earned by the staking party from staking activities in respect of any Note Purchased SOL during any given calendar month, provided that, for greater certainty, Staking Rewards shall not include block rewards.

**5.2 Disclosure for Restructuring Transactions**

Not applicable.

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**Item 6 - Reliance on subsection 11.2(2) of National Instrument 81-106:**

Not applicable.

**Item 7 - Omitted Information:**

Not applicable.

**Item 8 - Executive Officer:**

Doug Harris, Chief Financial Officer 416-480-2488 doug@solstrategies.io

**Item 9 - Date of Report:**

May 1, 2025

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## Exhibit 99.111

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**SOL Strategies Provides Update on SOL Purchases**

Toronto, Ontario--(Newsfile Corp. - May 6, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, announces the purchase of SOL from its recent closed convertible note facility.

**Recent SOL Purchases Update**

Following the <u>announced</u> successful initial USD $20 million closing of its USD $500 million convertible note facility with ATW Partners on May 1, 2025, SOL Strategies has executed on its commitment to deploy proceeds into SOL token acquisitions. As of the date hereof, the Company has invested the entire first tranche and acquired 122,524 SOL for USD $18,250,730, reflecting an average price of USD $148.96 per SOL.

"With the closing of our initial $20 million tranche from the ATW facility, we're executing exactly as promised - strategically acquiring SOL to expand our validator operations and ecosystem position," said Leah Wald, Chief Executive Officer of SOL Strategies. "These purchases directly strengthen our three-pillar strategy of enterprise grade validators, strategic SOL holdings, and solana technology innovation."

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact:<br>John Ragozzino, CFA<br><u>solstrategies@icrinc.com</u><br> 203.682.8284

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

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There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-111x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/250972</u>

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## Exhibit 99.112

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**SOL Strategies Exploring Pathway to Tokenize Shares on Solana Blockchain**

**SOL Strategies Sets Vision to Become First Public Company to Bring its Equity to the Blockchain**

Toronto, Ontario--(Newsfile Corp. - May 8, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF), (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company building infrastructure for the Solana ecosystem, today announced that on April 25, 2025 it signed a non-binding memorandum of understanding (the "MOU") with Superstate, a technology firm focused on modernizing capital markets through blockchain infrastructure.

Pursuant to the MOU, the Company and Superstate will explore Superstate acting as a junior transfer agent for the Company. In that role, Superstate is intended to provide the platform and infrastructure necessary for the Company to issue tokens in representation of common shares tradeable on the Solana blockchain, through Superstate's innovative "Opening Bell" platform.

Opening Bell, announced today by Superstate, aims to support SEC-registered public equities issued and traded directly on blockchain networks. The platform is designed to extend investor access, enable real-time settlement, and create interoperability with decentralized finance protocols. SOL Strategies is seeking to position itself as the first public issuer to explore this regulated pathway.

This exploration supports SOL Strategies' mission to build institutional trust in Solana's infrastructure and expand participation in decentralized networks. As on-chain activity grows-from real-world assets to decentralized finance-the Company's validator operations are positioned to benefit from the network's expansion.

"As leaders in the Solana ecosystem, our goal is to stay at the forefront of innovation," said Leah Wald, CEO of SOL Strategies. "We believe publicly listed tokenized equity represents a natural evolution in capital markets, and Solana's high-performance network is the ideal foundation for that future. By initiating this exploration, we're reinforcing our technology-first approach while opening potential new channels for global investor participation."

At this stage, no shares are being tokenized, and there is no plan to issue derivative tokens or convert existing equity into tokenized form. The Company is evaluating this opportunity through a measured, compliance-driven process with no immediate impact on shareholders or operations. This initiative does not represent a change in listing status nor require any action from current shareholders. No timeline has been set, as the process is subject to ongoing regulatory developments. The effort reflects SOL Strategies' commitment to expanding investor access through blockchain-based infrastructure while maintaining its current public listings.

The Company has not yet engaged with securities regulators or the Canadian Securities Exchange (CSE) regarding this initiative. As such, the Company cautions that this announcement remains exploratory in nature and may be considered promotional if interpreted otherwise. There are no financial commitments associated with the agreement. The Company will provide updates as the initiative progresses, but there is no guarantee it will move beyond the exploration stage.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian investment company operating at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides institutional-grade infrastructure and strategic capital to support the next generation of decentralized applications. To learn more, visit <u>www.solstrategies.io</u>. Regulatory documents are available at <u>www.sedarplus.ca</u>.

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**About Superstate**

Superstate is a financial technology firm reshaping capital markets by connecting financial assets with blockchain infrastructure. Its mission is to expand access, improve liquidity, and modernize how public securities are issued and traded.

**Investor Contact:**

John Ragozzino, CFA<br><u>solstrategies@icrinc.com</u><br> 203.682.8284

**Media Contact:**

Taylor Hadden<br><u>solstrategies@scrib3.co</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include, without limitation, statements regarding the potential tokenization of shares, exploration of blockchain-based equity markets, and possible future integration with Superstate's Opening Bell platform. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

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**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-112x001.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/251231</u>

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## Exhibit 99.113

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**SOL Strategies Announces Staking Partnership with ASX-Listed DigitalX**

**ASX-listed digital asset manager selects SOL Strategies' validator infrastructure for Solana staking services**

Toronto, Ontario--(Newsfile Corp. - May 12, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly Cypherpunk Holdings Inc., "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to building critical infrastructure for the Solana blockchain ecosystem, today announced a new strategic staking partnership with DigitalX Limited (ASX: DCC), an Australian Stock Exchange-listed blockchain technology company and digital asset fund manager.

Under the partnership, DigitalX will stake its Solana (SOL) holdings through BitGo's institutional custody platform, selecting SOL Strategies as its validator partner. BitGo is the world's largest, independent digital asset custodian, and its recent integration with SOL Strategies gives institutional clients secure access to a high-performance validator network.

This partnership builds on SOL Strategies' recent integration into BitGo's validator offering, a major milestone that positions SOL Strategies among a select group of trusted institutional validators globally. Through BitGo, institutional clients like DigitalX can now easily access SOL Strategies' high- performance validator network, which consistently delivers among the highest yields in the Solana ecosystem.

**SOL Strategies CEO, Leah Wald commented:**

"We're thrilled to welcome DigitalX to our growing roster of institutional clients, DigitalX shares our vision for expanding institutional access to the blockchain economy. Their decision to stake with SOL Strategies further validates the strength, security, and performance of the infrastructure we have built for sophisticated participants in the digital asset market."

The partnership represents a strategic collaboration between two publicly-traded blockchain companies. SOL Strategies will provide DigitalX with institutional-grade, compliant, and performance--optimized staking infrastructure, supporting DigitalX's capabilities within the Solana ecosystem.

**DigitalX Interim CEO, Demetrios Christou commented:**

"Partnering with SOL Strategies reflects our commitment to aligning with best-in-class infrastructure providers. Their proven performance, strong security and integration with BitGo made this an ideal choice as we expand our Solana exposure. This collaboration supports our goal of delivering consistent, secure and scalable returns through digital asset staking."

SOL Strategies operates enterprise-grade staking infrastructure with exceptional uptime and industry- leading security practices. The Company's validators utilize best-in-class hardware and operational protocols to maximize performance across the Solana network.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

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Investor Contact: <br>John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>203.682.8284

Public Relations Contact: <br><u>solstrategies@scrib3.co</u>

**About DigitalX Limited**

DigitalX Ltd (ASX: DCC) is a leading Australian digital investment manager and the only ASX-listed crypto fund manager. We are the longest standing publicly listed digital asset company in Australia.

Our track record of digital asset management covers more than six years and we've delivered strong results in that time: The DigitalX Bitcoin Fund was rated by Morningstar as the #1 Performing Fund in Australia across all categories for 2023 returns (source: AFR).

DigitalX implements institutional grade custody and insurance working exclusively with reputable, independent partners. Our primary clients are domestic individual wholesale investors and family offices.

We manage Australia's first ASX-listed spot Bitcoin ETF (ASX: BTXX) and our Treasury strategy includes earning yields through staking of digital assets - leveraging blockchain technologies to create additional value for our investors.

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the partnership with DigitalX, the anticipated benefits of this relationship, and its potential impact on the Company's position in the Solana validator ecosystem. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

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**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-113x001.jpg)

To view the source version of this press release, please visit <u>https://www.newsfilecorp.com/release/251532</u>

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## Exhibit 99.114

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![](exhibit99-114x001.jpg)

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![](exhibit99-114x002.jpg)

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## Exhibit 99.115

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## Exhibit 99.116

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**SOL STRATEGIES INC.**

401-217 Queen Street

Toronto, Ontario M5V 0R2

**NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS**

**NOTICE IS HEREBY GIVEN** that the annual and special meeting (the "**Meeting**") of shareholders ("**Shareholders**") of Sol Strategies Inc. (the "**Company**") will be held at the office of Irwin Lowy LLP located at 217 Queen Street West, Suite 401 Toronto, ON M5V 0R2; on Thursday, June 19, 2025, at 12:00 p.m. (Toronto Time) in order to:

1. to receive and consider the audited consolidated financial statements of the Company for the year ended September 30, 2024, and the report of the auditors thereon;

2. to elect directors of the Company to hold office until the next annual meeting of Shareholders;

3. to appoint the auditors of the Company and to authorize the directors to fix their remuneration;

4. to consider and, if deemed advisable, to pass, with or without variation, a special resolution to effect the consolidation of all of the issued and outstanding common shares of the Company on the basis of up to ten (10) old common shares for one (1) new common share, as more fully described in the accompanying management information circular;

5. to consider and, if deemed advisable, to pass, with or without variation, a resolution to ratify, confirm and approve a resolution of the directors of the Company amending the stock option plan (the "**Amended Equity Incentive Plan**") for directors, officers, employees and consultants of the Company and ratifying certain grants of restricted share units under the Amended Equity Incentive Plan; and

6. to transact such other business as may properly come before the Meeting or any adjournments or postponements thereof.

The full text of the special resolutions referred to in item 4 above are attached to this notice as Exhibit "A".

A shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must deposit his or her duly executed form of proxy with the Company's transfer agent and registrar, TSX Trust Company, at Suite 301, 100 Adelaide Street West, Toronto, Ontario M5H 4H1 not later than 12:00 p.m. (Eastern time) on Tuesday, June 17, 2025, or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned meeting.

Shareholders who are unable to attend the Meeting in person, are requested to date, complete, sign and return the enclosed form of proxy so that as large a representation as possible may be had at the Meeting.

The board of directors of the Company has by resolution fixed the close of business on Friday, May 9, 2025, as the record date, being the date for the determination of the registered holders of common shares of the Company entitled to receive notice of, and to vote at, the Meeting and any adjournment thereof.

**NOTICE-AND-ACCESS**

Notice is also hereby given that the Company has decided to use the notice-and-access method of delivery of meeting materials for the Meeting for beneficial owners of common shares of the Company (the "**Non-Registered Holders**") and for registered shareholders. The notice-and-access method of delivery of meeting materials allows the Company to deliver the meeting materials over the internet in accordance with the notice-and-access rules adopted by the Ontario Securities Commission under National Instrument 54-101 - *Communication with Beneficial Owners of Securities of a Reporting Issuer*. Under the notice-and-access system, registered shareholders will receive a form of proxy and the Non-Registered Holders will receive a voting instruction form enabling them to vote at the Meeting. However, instead of a paper copy of the notice of Meeting, the management information circular, the annual consolidated financial statements of the Company for the financial year ended September 30, 2024, and related management's discussion and analysis and other meeting materials (collectively the "**Meeting Materials**"), shareholders receive a notification with information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce the cost of printing and mailing the Meeting Materials to shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. The Company will not be adopting stratification procedures in relation to the use of notice-and access provisions.

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**Websites Where Meeting Materials Are Posted:**

Meeting Materials can be viewed online under the Company's profile at www.sedarplus.ca or on the website of TSX Trust Company, the Company's transfer agent and registrar, at <u>https://docs.tsxtrust.com/2473</u>. The Meeting Materials will remain posted on the TSX Trust Company's website at least until the date that is one year after the date the Meeting Materials were posted.

**How to Obtain Paper Copies of the Meeting Materials**

Shareholders may request paper copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year from the date the Meeting Materials are posted on the TSX Trust Company's website. In order to receive a paper copy of the Meeting Materials or if you have questions concerning notice-and-access, please contact the Company's transfer agent and registrar, TSX Trust Company, by calling toll free at 1-866- 600-5869 or by email at <u>Tsxtis@tmx.com</u>. Requests should be received by 4:00 p.m. (Eastern time) on Thursday, June 5, 2025, in order to receive the Meeting Materials in advance of the Meeting.

The accompanying management information circular provides additional detailed information relating to the matters to be dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of annual meeting. Additional information about the Company and its financial statements are also available on the Company's profile at <u>www.sedarplus.ca</u>.

**DATED** this 9<sup>th</sup> day of May, 2025.

**BY ORDER OF THE BOARD**

*"Antanas Guoga" (signed)*

*Chairman*

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**EXHIBIT "A"**

**SPECIAL RESOLUTION OF THE SHAREHOLDERS**

**OF**

**SOL STRATEGIES INC. (the "Company")**

**<u>AMENDMENT TO ARTICLES OF AMENDMENT - CONSOLIDATION</u>**

**"BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:**

1. the articles of the Company be amended to consolidate each of the issued and outstanding common shares of the Company on the basis of up to ten (10) pre-consolidation common shares of the Company into one (1) post-consolidation common share of the Company (the "**Consolidation**"), and further authorizing the directors in their sole discretion when and if to effect the Consolidation, in each case without requirement for further approval, ratification or confirmation by shareholders, as more particularly described in the management information circular dated May 9, 2025, of the Company, provided that in the event the Consolidation would result in a shareholder of the Company holding a fraction of a common share, a shareholder shall not receive a whole common share of the Company for each such fraction;

2. notwithstanding that this resolution has been duly passed by the shareholders of the Company, the directors of the Company be, and they are hereby authorized and directed to revoke this resolution at any time prior to the issue of a certificate of amendment giving effect to the Consolidation and to determine not to proceed with the amendment of the articles of amalgamation of the Company without further approval of the shareholders of the Company; and

3. any director or officer of the Company be and he or she is hereby authorized and directed, for and on behalf of the Company, to execute and deliver all such documents and to do all such other acts or things as he or she may determine to be necessary or advisable to give effect to this resolution, including, without limitation, the execution and delivery of the articles of amendment in the prescribed form to the Director appointed under the *Business Corporations Act* (Ontario), the execution of any such document or the doing of any such other act or thing being conclusive evidence of such determination."

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**SOL STRATEGIES INC.**

401-217 Queen Street

Toronto, Ontario M5V 0R2

**MANAGEMENT INFORMATION CIRCULAR**

This information is given as of May 9, 2025, unless stated otherwise

**SOLICITATION OF PROXIES**

**THIS MANAGEMENT INFORMATION CIRCULAR IS FURNISHED IN CONNECTION WITH THE SOLICITATION BY THE MANAGEMENT OF SOL STRATEGIES INC.** (the "**Company**") of proxies to be used at the annual and special meeting of shareholders of the Company to be held on Thursday, June 19, 2025, at the office of Irwin Lowy LLP at Suite 401, 217 Queen Street West, Toronto, Ontario M5V 0R2 at 12:00 p.m. (Eastern time), and at any adjournment or postponement thereof (the "**Meeting**") for the purposes set out in the acompanying notice of meeting (the "**Notice of Meeting**"). Although it is expected that the solicitation of proxies will be primarily by mail, proxies may also be solicited personally or by telephone, facsimile or other proxy solicitation services. In accordance with National Instrument 54-101 - *Communication with Beneficial Owners of Securities of a Reporting Issuer* ("**NI 54-101**"), arrangements have been made with brokerage houses and clearing agencies, custodians, nominees, fiduciaries or other intermediaries to send the Notice of Meeting, this management information circular (the "**Management Information Circular**"), the annual consolidated financial statements of the Company for the financial year ended September 30, 2024, and related management's discussion and analysis and other meeting materials, if applicable (collectively the "**Meeting Materials**") to the beneficial owners of the common shares of the Company (the "**Common Shares**") held of record by such parties. The Company may reimburse such parties for reasonable fees and disbursements incurred by them in doing so. The costs of the solicitation of proxies will be borne by the Company. The Company may also retain, and pay a fee to, one or more professional proxy solicitation firms to solicit proxies from the shareholders of the Company in favour of the matters set forth in the Notice of Meeting.

**NOTICE-AND-ACCESS**

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| | |
|:---|:---|
| The Company has decided to use the notice-and-access ("**Notice-and-Access**") rules provided under NI 54-101 for the delivery of the Meeting Materials to holders of Common Shares who appear on the records maintained by the Company's registrar and transfer agent as registered holders of Common Shares ("**Registered Shareholders**") and beneficial owners of Common Shares (the "**Non-Registered Holders**") for the Meeting. The Notice-and-Access method of delivery of Meeting Materials allows the Company to deliver the Meeting Materials over the internet in accordance with the Notice-and-Access rules adopted by the Ontario Securities Commission under NI 54-101.<br>Registered Shareholders will receive a form of proxy and Non-Registered Holders will receive a voting instruction form, enabling them to vote at the Meeting. However, instead of a paper copy of the Meeting Materials, shareholders receive only a notice with information on the date, location and purpose of the Meeting, as well as information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce the cost of printing and mailing the Meeting Materials to shareholders. Shareholders are reminded to view the Meeting Materials prior to voting.<br>Materials can be viewed online under the Company's profile at <u>www.sedarplus.ca</u> or on the website of TSX Trust Company, the Company's transfer agent and registrar, at <u>https://docs.tsxtrust.com/2473</u>. The Meeting Materials will remain posted on the TSX Trust Company's website at least until the date that is one year after the date the Meeting Materials were posted. The Company will not be adopting stratification procedures in relation to the use of Notice-and-Access provisions. | &nbsp;&nbsp;&nbsp;Shareholders may always request paper copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year from the date the Meeting Materials are posted on the TSX Trust Company's website. In order to receive a paper copy of the Meeting Materials or if you have questions concerning Notice-and-Access, please contact TSX Trust Company, the Company's transfer agent and registrar, by calling toll free at **1-866-600-5869** or by email at **Tsxtis@tmx.com.** Requests should be received Thursday, June 5, 2025, in order to receive the Meeting Materials in advance of the Meeting date. |

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**APPOINTMENT AND REVOCATION OF PROXIES**

A Registered Shareholder may vote in person at the Meeting or may appoint another person to represent such Registered Shareholder as proxy and to vote the Common Shares of such Registered Shareholder at the Meeting. In order to appoint another person as proxy, a Registered Shareholder must complete, execute and deliver the form of proxy accompanying this Management Information Circular, or another proper form of proxy, in the manner specified in the Notice of Meeting.

The purpose of a form of proxy is to designate persons who will vote on the shareholder's behalf in accordance with the instructions given by the shareholder in the form of proxy. The persons named in the enclosed form of proxy are officers or directors of the Company. **A REGISTERED SHAREHOLDER DESIRING TO APPOINT SOME OTHER PERSON, WHO NEED NOT BE A SHAREHOLDER OF THE COMPANY, TO REPRESENT HIM OR HER AT THE MEETING MAY DO SO BY FILLING IN THE NAME OF SUCH PERSON IN THE BLANK SPACE PROVIDED IN THE FORM OF PROXY OR BY COMPLETING ANOTHER PROPER FORM OF PROXY.** A Registered Shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must, in all cases, deposit the completed form of proxy with the Company's transfer agent and registrar, TSX Trust Company (the "**Transfer Agent**"), not later than 12:00 p.m. (Eastern time) on Tuesday, June 17, 2025 or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned Meeting at which the form of proxy is to be used. A form of proxy should be executed by the Registered Shareholder or his or her attorney duly authorized in writing or, if the Registered Shareholder is a corporation, by an officer or attorney thereof duly authorized.

Proxies may be deposited with the Transfer Agent using one of the following methods:

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| | |
|:---|:---|
| &nbsp;&nbsp;**By Mail or** | &nbsp;&nbsp;TSX Trust Company |
| &nbsp;&nbsp;**Hand Delivery:** | &nbsp;&nbsp;Suite 301 |
|  | &nbsp;&nbsp;100 Adelaide Street West |
|  | &nbsp;&nbsp;Toronto, Ontario M5H 4H1 |
| &nbsp;&nbsp;**By Fax:** | &nbsp;&nbsp;416-595-9593 |
| &nbsp;&nbsp;**By Internet:** | &nbsp;&nbsp;www.voteproxyonline.com |
|  | &nbsp;&nbsp;You will need to provide your 12 digit control number (located on the form of proxy accompanying this Management Information Circular). |

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A Registered Shareholder attending the Meeting has the right to vote in person and, if he or she does so, his or her form of proxy is nullified with respect to the matters such person votes upon at the Meeting and any subsequent matters thereafter to be voted upon at the Meeting or any adjournment thereof.

A Registered Shareholder who has given a form of proxy may revoke the form of proxy at any time prior to using it: (a) by depositing an instrument in writing, including another completed form of proxy, executed by such Registered Shareholder or by his or her attorney authorized in writing or by electronic signature or, if the Registered Shareholder is a corporation, by an authorized officer or attorney thereof at, or by transmitting by telephone or electronic means, a revocation signed, subject to the *Business Corporations Act* (Ontario), by electronic signature, to (i) the registered office of the Company, located at 217 Queen Street West, Suite 401, Toronto, Ontario M5V 0R2, at any time prior to 5:00 p.m. (Eastern time) on the last business day preceding the day of the Meeting or any adjournment thereof or (ii) with the Chairman of the Meeting on the day of the Meeting or any adjournment thereof; or (b) in any other manner permitted by law.

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**EXERCISE OF DISCRETION BY PROXIES**

The Common Shares represented by proxies in favour of management nominees will be voted or withheld from voting in accordance with the instructions of the Registered Shareholder on any ballot that may be called for and, if a Registered Shareholder specifies a choice with respect to any matter to be acted upon at the meeting, the Common Shares represented by the proxy shall be voted accordingly. Where no choice is specified, the proxy will confer discretionary authority and will be voted for the election of directors, for the appointment of auditors and the authorization of the directors to fix their remuneration and for each item of special business, as stated elsewhere in this Management Information Circular.

The enclosed form of proxy also confers discretionary authority upon the persons named therein to vote with respect to any amendments or variations to the matters identified in the Notice of Meeting and with respect to other matters which may properly come before the Meeting in such manner as such nominee in his judgment may determine. At the time of printing this Management Information Circular, the management of the Company knows of no such amendments, variations or other matters to come before the Meeting.

**ADVICE TO NON-REGISTERED SHAREHOLDERS**

**The information set forth in this section is of significant importance to many shareholders of the Company, as a substantial number of shareholders of the Company do not hold Common Shares in their own name.** Only Registered Shareholders or the persons they appoint as their proxies are permitted to attend and vote at the Meeting and only forms of proxy deposited by Registered Shareholders will be recognized and acted upon at the Meeting. Common Shares beneficially owned by a Non-Registered Holder are registered either: (i) in the name of an intermediary (an "**Intermediary**") with whom the Non-Registered Holder deals in respect of the Common Shares (Intermediaries include, among others, banks, trust companies, securities dealers or brokers and trustees or administrators of self-administered RRSPs, RRIFs, RESPs and similar plans); or (ii) in the name of a clearing agency (such as CDS Clearing and Depository Services Inc.) (each a "**Clearing Agency**") of which the Intermediary is a participant. Accordingly, such Intermediaries and Clearing Agencies would be the Registered Shareholders and would appear as such on the list maintained by the Transfer Agent. Non-Registered Holders do not appear on the list of the Registered Shareholders maintained by the Transfer Agent.

***Distribution of Meeting Materials to Non-Registered Holders***

In accordance with the requirements of NI 54-101, the Company has distributed copies of the Meeting Materials to the Clearing Agencies and Intermediaries for onward distribution to Non-Registered Holders as well as directly to NOBOs (as defined below).

Non-Registered Holders fall into two categories - those who object to their identity being known to the issuers of securities which they own ("**OBOs**") and those who do not object to their identity being made known to the issuers of the securities which they own ("**NOBOs**"). Subject to the provisions of NI 54-101, issuers may request and obtain a list of their NOBOs from Intermediaries directly or via their transfer agent and may obtain and use the NOBO list for the distribution of proxy-related materials to such NOBOs. If you are a NOBO and the Company or its agent has sent the Meeting Materials directly to you, your name, address and information about your holdings of Common Shares have been obtained in accordance with applicable securities regulatory requirements from the Intermediary holding the Common Shares on your behalf.

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The Company's OBOs can expect to be contacted by their Intermediary. The Company does not intend to pay for Intermediaries to deliver the Meeting Materials to OBOs and it is the responsibility of such Intermediaries to ensure delivery of the Meeting Materials to their OBOs.

***Voting by Non-Registered Holders***

The Common Shares held by Non-Registered Holders can only be voted or withheld from voting at the direction of the Non-Registered Holder. Without specific instructions, Intermediaries or Clearing Agencies are prohibited from voting Common Shares on behalf of Non-Registered Holders. Therefore, each Non-Registered Holder should ensure that voting instructions are communicated to the appropriate person well in advance of the Meeting.

The various Intermediaries have their own mailing procedures and provide their own return instructions to Non-Registered Holders, which should be carefully followed by Non-Registered Holders in order to ensure that their Common Shares are voted at the Meeting.

Non-Registered Holders will receive either a voting instruction form or, less frequently, a form of proxy. The purpose of these forms is to permit Non-Registered Holders to direct the voting of the Common Shares they beneficially own. Non-Registered Holders should follow the procedures set out below, depending on which type of form they receive.

*<u>Voting Instruction Form</u>.* In most cases, a Non-Registered Holder will receive, as part of the Meeting Materials, a voting instruction form (a "**VIF**"). If the Non-Registered Holder does not wish to attend and vote at the Meeting in person (or have another person attend and vote on the Non-Registered Holder's behalf), the VIF must be completed, signed and returned in accordance with the directions on the form.

or,

*<u>Form of Proxy.</u>* Less frequently, a Non-Registered Holder will receive, as part of the Meeting Materials, a form of proxy that has already been signed by the Intermediary (typically by a facsimile, stamped signature) which is restricted as to the number of Common Shares beneficially owned by the Non-Registered Holder but which is otherwise not completed. If the Non-Registered Holder does not wish to attend and vote at the Meeting in person (or have another person attend and vote on the Non-Registered Holder's behalf), the Non-Registered Holder must complete and sign the form of proxy and in accordance with the directions on the form.

***Voting by Non-Registered Holders at the Meeting***

Although a Non-Registered Holder may not be recognized directly at the Meeting for the purposes of voting Common Shares registered in the name of an Intermediary or a Clearing Agency, a Non-Registered Holder may attend the Meeting as proxyholder for the Registered Shareholder who holds Common Shares beneficially owned by such Non-Registered Holder and vote such Common Shares as a proxyholder. A Non-Registered Holder who wishes to attend the Meeting and to vote their Common Shares as proxyholder for the Registered Shareholder who holds Common Shares beneficially owned by such Non-Registered Holder, should (a) if they received a VIF, follow the directions indicated on the VIF; or (b) if they received a form of proxy strike out the names of the persons named in the form of proxy and insert the Non-Registered Holder's or its nominees name in the blank space provided. Non-Registered Holders should carefully follow the instructions of their Intermediaries, including those instructions regarding when and where the VIF or the form of proxy is to be delivered.

All references to shareholders in the Meeting Materials are to Registered Shareholders as set forth on the list of registered shareholders of the Company as maintained by the Transfer Agent, unless specifically stated otherwise.

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**VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES**

The holders of Common Shares of record at the close of business on the record date, set by the directors of the Company to be Friday, May 9, 2025, (the "**Record Date**"), are entitled to vote such Common Shares at the Meeting on the basis of one vote for each Common Share held.

The authorized share capital of the Company consists of an unlimited number of Common Shares without par value, of which as at the Record Date 161,721,183 Common Shares are issued and outstanding, and an unlimited number of special shares, of which none are issued and outstanding.

Only Registered Shareholders as of the Record Date are entitled to receive notice of, and to attend and vote at, the Meeting or any adjournment or postponement of the Meeting. On a show of hands, every Registered Shareholder and proxy holder will have one vote and, on a poll, every Registered Shareholder present in person or represented by proxy will have one vote for each Common Share held.

To the knowledge of the directors and senior officers of the Company, no person beneficially owns, directly or indirectly, or exercises control or direction over, directly or indirectly, voting securities carrying ten percent (10%) or more of the voting rights attached to any class of voting securities of the Company, other than as set forth below:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**Number of Common** | &nbsp;&nbsp;**Percentage of Issued and** |
| &nbsp;&nbsp;**Name<sup>(1)</sup>** | &nbsp;&nbsp;**Shares** | &nbsp;&nbsp;**Outstanding Common Shares** |
| &nbsp;&nbsp;Antanas Guoga | &nbsp;&nbsp;33916788<sup>(2)</sup> | &nbsp;&nbsp;20.97% |

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**Notes:**

*(1) The above information as to voting securities beneficially owned, controlled or directed, not being within the knowledge of the Company, has been obtained from publicly disclosed information and confirmed by the individual.*

*(2) 31,856,268 Common Shares are directly held by Mr. Guoga, and 2,060,520 Common Shares are held by UAB NTSG, a corporation beneficially owned and controlled by Mr. Guoga.*

**INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED ON**

Other than as otherwise disclosed herein, no director or executive officer of the Company who was a director or executive officer at any time since the beginning of the last financial year of the Company, or any associate or affiliates of any such directors or officers, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Meeting.

**PARTICULARS OF MATTERS TO BE ACTED ON**

To the knowledge of the board of directors of the Company (the "**Board**"), the matters to be brought before the Meeting are those matters set forth in the accompanying Notice of Meeting.

**1. AUDITED FINANCIAL STATEMENTS**

The consolidated financial statements for the financial year ended September 30, 2024, and the report of the auditors thereon, which accompany this Circular will be submitted to the Meeting of shareholders. Receipt at such Meeting of the auditors' report and the Company's financial statements for this financial period will not constitute approval or disapproval of any matters referred to therein.

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**2. APPOINTMENT OF AUDITORS**

Kingston Ross Pasnak LLP, Chartered Professional Accountants, the former auditors of the Company, resigned, at the request of the Company, as the auditors of the Company effective January 29, 2025. The Board appointed Davidson & Company LLP, Chartered Professional Accountants, as auditors of the Company effective January 29, 2025, to fill the vacancy created thereby. Shareholders are being asked to confirm the actions of the Board and appoint Davidson & Company LLP, Chartered Professional Accountants, as auditors of the Company to hold office until the next annual meeting of shareholders.

**UNLESS THE SHAREHOLDER DIRECTS THAT HIS, HER OR ITS COMMON SHARES ARE TO BE WITHHELD FROM VOTING IN CONNECTION WITH THE CONFIRMATION AND APPOINTMENT OF AUDITORS, THE PERSONS NAMED IN THE ENCLOSED FORM OF PROXY INTEND TO VOTE FOR THE APPOINTMENT OF DAVIDSON & COMPANY LLP, CHARTERED PROFESSIONAL ACCOUNTANTS, AS THE AUDITORS OF THE COMPANY UNTIL THE NEXT ANNUAL MEETING OF SHAREHOLDERS AND TO AUTHORIZE THE DIRECTORS TO FIX THEIR REMUNERATION.**

In accordance with the provisions of National Instrument 51-102 - *Continuous Disclosure Obligations*, attached hereto as Appendix "C", is the requisite reporting package, including the notice of the Company to Kingston Ross Pasnak LLP, Chartered Professional Accountants, and Davidson & Company LLP, Chartered Professional Accountants stating that there are no reportable events and the letters of each of Kingston Ross Pasnak LLP, Chartered Professional Accountants, and Davidson & Company LLP, Chartered Professional Accountants to the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the Manitoba Securities Commission and the Financial and Consumer Affairs Authority of Saskatchewan.

**3. ELECTION OF DIRECTORS**

*Advance Notice By-law*

The general by-laws of the Company include provisions that establish a framework for advance notice of nominations of directors by shareholders of the Company (the "**Advance Notice By-law**"). In particular, the Advance Notice By-law is intended to increase transparency and promote informed decision making by providing all shareholders with reasonable notice of director nominations and sufficient information to vote on all the director nominees. The Advance Notice By-law sets a deadline for a certain number of days before a shareholders' meeting for a shareholder to notify the Company of its Intention to nominate one or more directors, and explains the information that must be included with the notice for it to be valid. The Advance Notice By-law applies at an annual meeting of shareholders or a special meeting of shareholders that was called to elect directors, and may be waived by the Board. It does not affect the ability of shareholders to requisition a meeting.

As of the date of this Circular and in respect of the Meeting, the Company has received no nominations purportedly made under the requirements of the Advance Notice By-law or otherwise.

**Nominees for Election as Directors**

The Board currently consists of six (6) directors. It is proposed that the six (6) people listed below be nominated for election as directors of the Company to hold office until the next annual meeting or until their successors are elected or appointed. All six (6) of the proposed nominees are currently directors of the Company and have been so since the respective dates indicated.

**The Board of Directors recommends that shareholders vote for the election of the proposed nominees set out below. Unless otherwise instructed, proxies and voting instructions given pursuant to this solicitation by the management of the Company will be voted for the election of the proposed nominees.** If any proposed nominee is unable to serve as a director, the individuals named in the enclosed form of proxy reserve the right to nominate and vote for another nominee at their discretion.

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The following table sets forth for each nominee for election as director: place of residence; present principal occupation and, if not a director elected to the present term of office, principal occupations held in the last five (5) years, if different; the number of Common Shares beneficially owned, directly or indirectly, or over which control or direction, directly or indirectly, is exercised at the Record Date; the date the nominee became a director of the Company; current or proposed membership on committees of the Board; and whether or not the Board has determined each nominee to be independent. There are no contracts, arrangements or understandings between any director or executive officer or any other person pursuant to which any of the nominees has been nominated.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name, province or state and** | &nbsp;&nbsp;**Principal occupation or employment** | &nbsp;&nbsp;**Served as Director of** | &nbsp;&nbsp;**Number of** | &nbsp;&nbsp;**Percentage** |
| &nbsp;&nbsp;**country of residence and** | &nbsp;&nbsp;**and, if not a director elected to the** | &nbsp;&nbsp;**the Company since** | &nbsp;&nbsp;**Common** | &nbsp;&nbsp;**of Voting** |
| &nbsp;&nbsp;**position, if any, held in the** | &nbsp;&nbsp;**present term of office, occupation** |  | &nbsp;&nbsp;**Shares** | &nbsp;&nbsp;**Shares** |
| &nbsp;&nbsp;**Company** | &nbsp;&nbsp;**during the past 5 years** |  | &nbsp;&nbsp;**beneficially** | &nbsp;&nbsp;**Owned or** |
|  |  |  | &nbsp;&nbsp;**owned, directly** | &nbsp;&nbsp;**Controlled** |
|  |  |  | &nbsp;&nbsp;**or indirectly, or** |  |
|  |  |  | &nbsp;&nbsp;**controlled or** |  |
|  |  |  | &nbsp;&nbsp;**directed at** |  |
|  |  |  | &nbsp;&nbsp;**present<sup>(1)</sup>** |  |
| &nbsp;&nbsp;Leah Wald<sup>((4)</sup>Tennessee, USA<br>President and Chief Executive<br>Officer and Director<sup></sup> | &nbsp;&nbsp;President and Chief Executive Officer of the Company (August 2024 - Present) Former Chief Executive Officer of Valkyrie Investments Inc. (2020 - 2024), VP Portfolio Management at Exponential Group (2020), Partner & EVP, Lucid Investment Strategies, LLC (2017 - 2020) | &nbsp;&nbsp;September 2, 2021 | &nbsp;&nbsp;674400 | &nbsp;&nbsp;0.47% |
| &nbsp;&nbsp;Antanas (Tony) Guoga<br>Kaunas, Lithuania<br>Executive Chairman and<br>Director | &nbsp;&nbsp;Former Chief Executive Officer of the Company (2021 - 2022). Member of the Seimas of the Republic of Lithuania, the legislative branch of government in Lithuania (2020 - 2021). Prior thereto, he was a member of the European Parliament from 2014 to 2019. | &nbsp;&nbsp;August 11, 2020 | &nbsp;&nbsp;33916788<sup>(5)</sup> | &nbsp;&nbsp;20.97% |
| &nbsp;&nbsp;Jon Matonis<sup>(2)(3)(4)</sup>London, United Kingdom<sup>Chief Economist and Director</sup> | &nbsp;&nbsp;Chief Economist of the Company and businessman, monetary economist. | &nbsp;&nbsp;April 9, 2020 | &nbsp;&nbsp;600000 | &nbsp;&nbsp;0.37% |
| &nbsp;&nbsp;Rubsun Ho<sup>(2)(3)</sup>Toronto, Ontario, Canada<sup>Director</sup> | &nbsp;&nbsp;Lawyer | &nbsp;&nbsp;June 16, 2021 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil |
| &nbsp;&nbsp;Ungad Chadda<sup>(2)(3)</sup>Toronto, Ontario, Canda<sup></sup>Director<sup></sup> | &nbsp;&nbsp;Former President of Toronto Stock Exchange and Senior Vice President of TMX Group Ltd. (from December 1997 until May 2019). Chief Executive Officer of Urban Infrastructure Group Inc. (September 2023 until April 2025). CEO of Global Uranium Inc. from August 2024 to present. | &nbsp;&nbsp;September 10, 2024 | &nbsp;&nbsp;2910 | &nbsp;&nbsp;0.001% |
| &nbsp;&nbsp;Luis Berruga<sup>(2)(3)(4)(6))</sup><br>New York, USA<br>Director | &nbsp;&nbsp;Founder and Managing Partner of LBS Capital (2024 - Current); Chief Executive Officer of Global X ETFs (2018 - 2023) | &nbsp;&nbsp;February 3, 2025 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil |

---

***Notes:***

*(1) The information as to voting securities beneficially owned, controlled or directed, not being within the knowledge of the Company, has been furnished by the respective nominees individually.*

*(2) Member of the Audit Committee.*

*(3) Member of the Compensation Committee.*

*(4) Member of the Investment Committee.*

*(5) 31,856,268 Common Shares are directly held by Mr. Guoga, and 2,060,520 Common Shares are held by UAB NTSG, a corporation beneficially owned and controlled by Mr. Guoga.*

*(6) The principal occupation of Mr. Luis Berruga, the director nominee who was not previously elected by the shareholders of the Company, during the past five years is as follows:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Luis Berruga is an accomplished asset management executive and Founder & Managing Partner of LBS Capital, a boutique investment firm specializing in wealth management and ETFs. Previously, as CEO and Chairman of Global X ETFs, he grew assets under management from $10B to $40B in the US and $80B globally over five years. Luis has held positions at Jefferies' Financial Institutions Group and Morgan Stanley, advising boards on strategic transactions. He currently serves as an independent director for the Company, KraneShares, and Tidal Financial Group. Luis holds an MBA from Northwestern University's Kellogg School of Management, a degree in Telecommunications Engineering from Universidad Politecnica de Madrid, and corporate governance certification from Wharton.*

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The term of office of each director will be from the date of the Meeting at which he or she is elected until the next annual meeting, or until his or her successor is elected or appointed.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE ELECTION OF THE ABOVE-NAMED NOMINEES, UNLESS THE SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS SHARES ARE TO BE WITHHELD FROM VOTING IN RESPECT THEREOF.** Management has no reason to believe that any of the nominees will be unable to serve as a director but**, IF A NOMINEE IS FOR ANY REASON UNAVAILABLE TO SERVE AS A DIRECTOR, PROXIES IN FAVOUR OF MANAGEMENT WILL BE VOTED IN FAVOUR OF THE REMAINING NOMINEES AND MAY BE VOTED FOR A SUBSTITUTE NOMINEE UNLESS THE SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS SHARES ARE TO BE WITHHELD FROM VOTING IN RESPECT OF THE ELECTION OF DIRECTORS.**

***Corporate Cease Trade Orders or Bankruptcies***

Other than as set out below, no director or executive officer of the Company is, as at the date hereof, or was within ten (10) years before the date of this Circular, a director, chief executive officer or chief financial officer of any company (including the Company), that: (a) was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or (b) was subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

Douglas Harris, the Company's Chief Financial Officer also serves as Chief Financial Officer of Braingrid Limited ("**Braingrid**"). While Mr. Harris was serving as Chief Financial Officer of Braingrid Limited, on July 22, 2020, the Ontario Securities Commission issued a cease trade order against Braingrid for failure to file its annual financial statements and related management's discussion and analysis and certificates for Braingrid's fiscal year ended January 31, 2020, and for its three-month period ended April 30, 2020. Braingrid subsequently made the required filings and the cease trade order was revoked by the Ontario Securities Commission on September 9, 2020.

Antanas Guoga, the Company's Executive Chairman and Director also services as a Director of Tony G Co-Investment Holdings Ltd. ("**Tony G**"). On June 6, 2022, the Ontario Securities Commission issued a cease trade order against Tony G for failure to file its annual financial statements and related management's discussion and analysis and certificates for Tony G's fiscal year ended January 31, 2022. The cease trade order was revoked on July 21, 2023.

***Personal Bankruptcies***

Other than as set out below, no director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company: (a) is, as at the date hereof, or has been within the ten (10) years before the date of this Circular, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or (b) has, within the ten (10) years before the date of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

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***Penalties and Sanctions***

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

**Conflicts of Interest**

The directors or officers of the Company are, or may become, directors or officers of other companies with businesses which may conflict with the business of the Company. In accordance with the *Business Corporations Act (Ontario)*, directors are required to act honestly and in good faith with a view to the best interests of the Company. In addition, directors in a conflict of interest position are required to disclose certain conflicts to the Company and to abstain from voting in connection with the matter. To the best of the Company's knowledge, there are no known existing or potential conflicts of interest between the Company or a subsidiary of the Company and a director or officer of the Company or a subsidiary of the Company as a result of their outside business interests at the date hereof. Accordingly, conflicts of interest may arise which could influence these persons in evaluating possible acquisitions or in generally acting on behalf of the Company.

**4. AMENDMENT TO THE ARTICLES OF THE COMPANY - CONSOLIDATION**

At the Meeting, shareholders are being asked to consider and, if deemed advisable, to pass, with or without variation, a special resolution, the text of which is attached as Exhibit "A" to the Notice (the "**Consolidation Resolution**"), which would authorize the Company to effect a consolidation of all of the issued and outstanding Common Shares on the basis of up to ten (10) pre-consolidation Common Shares, or such lesser number of pre-consolidation Common Shares as the directors of the Company in their discretion may determine, for one (1) post-consolidation Common Share (the "**Consolidation**"). In the event that shareholders pass the Consolidation Resolution and the Board determines to consolidate on a maximum 10:1 basis, the presently issued and outstanding 161,721,183 Common Shares will be consolidated into approximately 16,172,118 Common Shares. If the Board determines to consolidate the Common Shares on a lesser basis, more Common Shares will remain outstanding following the Consolidation. Any factional Common Shares arising from the Consolidation will be rounded down to the nearest whole Common Share. in all other respects, the post-consolidated Common Shares will have the same attributes as the existing Common Shares.

The Company believes that the Consolidation will both enhance the marketability of the Company as an investment and better position the Company to raise the funds necessary for the continued development of its business and the growth of the Company.

The Board may determine not to implement the Consolidation after the Meeting and after receipt of necessary shareholder and regulatory approvals, but prior to the issue of a certificate of amendment under the *Business Corporation Act* (Ontario), without further action on the part of the shareholders.

At the Meeting, shareholders will be asked to consider and, if deemed advisable, to pass as a special resolution, with or without variation, the Consolidation Resolution, the text of which is attached as Exhibit "A" to the Notice, to effect the consolidation of all of the issued and outstanding Common Shares on the basis of up to ten (10) old Common Shares for one (1) new Common Share.

------

In order to pass, the Consolidation Resolution must be approved by at least two thirds of the votes cast by the shareholders, present at the Meeting in person or represented by proxy. If the Consolidation Resolution does not receive the requisite shareholder approval, the Company will continue with its present share capital.

The Board recommends that shareholders vote in favour of the Consolidation Resolution to approve the Consolidation as set out above.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE APPROVAL OF THE CONSOLIDATION RESOLUTION, UNLESS THE SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS COMMON SHARES ARE TO BE VOTED AGAINST THE CONSOLIDATION RESOLUTION.**

**5. AMENDMENT OF STOCK OPTION PLAN**

The Company has in place a stock option plan (the "**Stock Option Plan**"). On December 4, 2024, the Board approved an amendment of the Stock Option Plan to convert the Stock Option Plan from a "rolling 10%" plan to an omnibus term incentive plan whereby a maximum of 10% of the issued and outstanding Common Shares, from time to time, may be reserved for issuance pursuant to the exercise of stock options, performance share units, deferred share units, and restricted share units (the "**Amended Equity Incentive Plan**").

The Amended Equity Incentive Plan is a "rolling" plan which sets the number of Awards (as defined herein) available for grant by the Company at amount equal to up to a maximum of 10% of the Company's issued and outstanding Common Shares from time to time. The Amended Equity Incentive Plan will allow for a variety of equity-based awards that provide different types of incentives to be granted to certain of our executive officers, employees and consultants (in the case of options ("**Option**s"), performance share units ("**PSUs**"), deferred share units ("**DSUs**") and restricted share units ("**RSUs**"). Options, PSUs and RSUs are collectively referred to herein as "**Awards**". Each Award will represent the right to receive Common Shares, or in the case of PSUs, DSUs and RSUs, Common Shares or cash, in accordance with the terms of the Amended Equity Incentive Plan. The following summary of the material terms of the Amended Equity Incentive Plan is qualified in its entirety by the full text of the Amended Equity Incentive Plan discussion is qualified in its entirety by the full text of the Amended Equity Incentive Plan, which will be made available at the office of Irwin Lowy LLP, at 217 Queen Street West, Suite 401, Toronto, Ontario M5V 0R2, until the business day immediately preceding the date of the Meeting.

Under the terms of the Amended Equity Incentive Plan, the Board may grant Awards to eligible participants, as applicable. Participation in the Amended Equity Incentive Plan is voluntary and, if an eligible participant agrees to participate, the grant of Awards will be evidenced by a grant agreement with each such participant. The interest of any participant in any Award is not assignable or transferable, whether voluntary, involuntary, by operation of law or otherwise, other than by will or the laws of descent and distribution.

The Amended Equity Incentive Plan will provide those appropriate adjustments, if any, will be made by the Board in connection with a reclassification, reorganization or other change of the Company's Common Shares, share split or consolidation, distribution, merger or amalgamation, in the Common Shares issuable or amounts payable to preclude a dilution or enlargement of the benefits under the Amended Equity Incentive Plan.

For the purposes of calculating the maximum number of Common Shares reserved for issuance under the Amended Equity Incentive Plan, any issuance from treasury by the Company that is issued in reliance upon an exemption under applicable stock exchange rules applicable to equity-based compensation arrangements used as an inducement to person(s) or company(ies) not previously employed by and not previously an insider of the Company shall not be included. All of the Common Shares covered by the exercised, cancelled or terminated Awards will automatically become available Common Shares for the purposes of Awards that may be subsequently granted under the Amended Equity Incentive Plan. As a result, the Amended Equity Incentive Plan is considered an "evergreen" plan.

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In addition, the aggregate number of Awards issuable to all Participants must not exceed 10% of the issued and outstanding Common Shares at the date of grant. For the purposes of calculating the maximum number of Common Shares reserved for issuance under the Amended Equity Incentive Plan, any issuance from treasury by the Company that is issued in reliance upon an exemption under applicable stock exchange rules applicable to equity-based compensation arrangements used as an inducement to person(s) or company(ies) not previously employed by and not previously an insider of the Company shall not be included. All of the Common Shares covered by the cancelled or terminated Awards will automatically become available Common Shares for the purposes of Awards that may be subsequently granted under the Amended Equity Incentive Plan.

The maximum number of Common Shares that may be: (i) issued to insiders of the Company within any one-year period; or (ii) issuable to insiders of the Company at any time, in each case, under the Amended Equity Incentive Plan alone, or when combined with all of the Company's other security-based compensation arrangements, cannot exceed 10% of the aggregate number of Common Shares issued and outstanding from time to time determined on a non-diluted basis.

An Option shall be exercisable during a period established by the Board which shall commence on the date of the grant and shall terminate no later than ten years after the date of the granting of the Option or such shorter period as the Board may determine. As long as the Common Shares are traded on a stock exchange, the exercise price of an Option may not be less than the greater of the closing price of the Common Shares on: (i) the last trading day before the date such Option is granted; and (ii) the date such Option is granted. The Amended Equity Incentive Plan provides that the exercise period of an Option will automatically be extended if the date on which it is scheduled to terminate falls during a black-out period. In such cases, the extended exercise period will terminate 10 business days after the last day of the black-out period. In order to facilitate the payment of the exercise price of the Options, the Amended Equity Incentive Plan has a cashless exercise feature pursuant to which a participant may elect to undertake a broker assisted "cashless exercise" subject to the procedures set out in the Amended Equity Incentive Plan, including the consent of the Board, where required.

The terms and conditions of grants of RSUs, DSUs and PSUs, including the quantity, type of award, grant date, vesting conditions, vesting periods, settlement date and other terms and conditions with respect to these Awards, will be set out in the participant's grant agreement. Impact of certain events upon the rights of holders of these types of Awards, including termination for cause, resignation, retirement, termination other than for cause and death or long-term disability, will be set out in the participant's grant agreement.

The Board may, in its sole discretion, suspend or terminate the Amended Equity Incentive Plan at any time, or from time to time, amend, revise or discontinue the terms and conditions of the Amended Equity Incentive Plan or of any securities granted under the Amended Equity Incentive Plan and any grant agreement relating thereto, subject to any required regulatory approval, provided that such suspension, termination, amendment, or revision will not adversely alter or impair any Award previously granted except as permitted by the terms of the Amended Equity Incentive Plan or as required by applicable laws.

The Board may amend the Amended Equity Incentive Plan or any securities granted under the Amended Equity Incentive Plan at any time without the consent of a participant provided that such amendment shall: (i) not adversely alter or impair any Award previously granted except as permitted by the terms of the Amended Equity Incentive Plan; (ii) be in compliance with applicable law and subject to any regulatory approvals including, where required, the approval any applicable stock exchange; and (iii) be subject to shareholder approval, where required by law or the requirements of the Amended Equity Incentive Plan, provided however that shareholder approval shall not be required for the following amendments and the Board may make any changes which may include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amendments of a general "housekeeping" or clerical nature that, among others, clarify, correct or rectify any ambiguity, defective provision, error or omission in the Amended Equity Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any amendment regarding the administration of the Amended Equity Incentive Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amendments to the eligibility criteria and limits for participation in the Amended Equity Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any amendment necessary to comply with applicable law or the requirements of any applicable stock exchange or any other regulatory body having authority over the Company, the Amended Equity Incentive Plan or the shareholders of the Company (provided, however, that any applicable stock exchange shall have the overriding right in such circumstances to require shareholder of any such amendments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other amendment that does not require shareholder approval under the Amended Equity Incentive Plan.

To be effective, the Amended Equity Incentive Plan Resolution requires the affirmative vote of not less than a majority of the votes cast by shareholders present or represented by proxy and entitled to vote at the Meeting.

The Board unanimously recommends that shareholders vote in favour of the Amended Equity Incentive Plan Resolution. Unless otherwise indicated, the persons designated as proxyholders in the accompanying form of proxy will vote the Common Shares represented by such form of proxy, properly executed, FOR the Amended Equity Incentive Plan Resolution.

In addition, since the effective date of the approval of the Amended Equity Incentive Plan, the Company granted an aggregate of 1,113,669 RSUs of the Company as follows:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Date** | &nbsp;&nbsp;**Number of** | | &nbsp;&nbsp;**Expiry Date** |
|  | &nbsp;&nbsp;**RSUs** | |  |
|  |  | &nbsp;&nbsp;**Percentage of**<br>&nbsp;&nbsp;**Common Shares as**<br>&nbsp;&nbsp;**at the date of this**<br>&nbsp;&nbsp;**Management**<br>&nbsp;&nbsp;**Information Circular** |  |
| &nbsp;&nbsp;November 24, 2024 | &nbsp;&nbsp;563669 | &nbsp;&nbsp;0.35% | &nbsp;&nbsp;the later of six months from November 24, 2025, or (b) the date upon which shareholder approval for the Plan is received by the Company. |
| &nbsp;&nbsp;January 30, 2025 | &nbsp;&nbsp;500000 | &nbsp;&nbsp;0.31% | &nbsp;&nbsp;six (6) months from the earlier of (a) February 28, 2025, or (b) the date upon which shareholder approval for the Amended Equity Incentive Plan is received by the Company |
| &nbsp;&nbsp;February 7, 2025 | &nbsp;&nbsp;50000 | &nbsp;&nbsp;0.03% | &nbsp;&nbsp;six (6) months from the earlier of (a) June 11, 2025, or (b) the date upon which shareholder approval for the Amended Equity Incentive Plan is received by the Company |

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Shareholders are being asked to approve and confirm the action of the Board in establishing the Amended Equity Incentive Plan and ratifying the grant of Options. In order to confirm and approve the Amended Equity Incentive Plan and grant of the Options, a majority of votes cast at the Meeting must be voted in favour of the Amended Equity Incentive Plan and grant of the Options. In the event the Amended Equity Incentive Plan and grant of the Options is approved by the shareholders, the Amended Equity Incentive Plan and the grant of the Options will be confirmed, approved and ratified. Accordingly, shareholders will be asked at the Meeting to pass the following resolution with or without variation, relating to the approvals as described above:

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**"BE IT RESOLVED THAT:**

1. the resolution of the Board passed on December 4, 2024, amending the equity incentive plan for the directors, officers, employees and consultants of the Company and its subsidiaries, and the grant of RSUs under the equity incentive plan, as amended, be and is hereby approved and confirmed.

**PROXIES RECEIVED IN FAVOUR OF MANAGEMENT WILL BE VOTED FOR THE APPROVAL OF THE AMENDMENT OF THE STOCK OPTION PLAN AND RATIFYING THE GRANT OF CERTAIN OPTIONS UNDER THE Amended Equity Incentive Plan, UNLESS THE SHAREHOLDER HAS SPECIFIED IN THE PROXY THAT HIS, HER OR ITS COMMON SHARES ARE TO BE VOTED AGAINST SUCH RESOLUTION.**

**STATEMENT OF CORPORATE GOVERNANCE PRACTICES**

Effective corporate governance is a priority for the Board of Directors. In developing the Company's corporate governance practices, the Board of Directors has taken into account the rules and guidelines adopted by the Canadian Securities Administrators ("**CSA**") in June 2005 (National Instrument 58-101 - *Disclosure of Corporate Governance Practices* ("**NI 58-101**") and National Policy 58-201 - *Corporate Governance Guidelines* (collectively, the "**CSA Governance Requirements**"), which require the Company to disclose certain information relating to its corporate governance practices.

The CSA Governance Requirements set out best practices drawn from existing Canadian standards and U.S. regulatory standards. The Company is required to describe certain aspects of its corporate governance practices in its management information circular, including a discussion of any practices that are inconsistent with the CSA Governance Requirements. This information is set out in Appendix "A" to this Circular.

The CSA has also enacted rules regarding the composition of audit committees (Multilateral Instrument 52-110 - *Audit Committees*) and the certification of an issuer's disclosure controls and procedures (Multilateral Instrument 52- 109 - *Certification of Disclosure in Issuers' Annual and Interim Filings*). The Company is currently in compliance with these rules. For the year ended September 30, 2024, the President and Chief Executive Officer and Chief Financial Officer were required to file a certificate to certify that the Company's annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings and the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

In this Circular, the term "independent" director has the corresponding meaning given to the term "independent" director in NI 58-101; namely, a director who has no direct or indirect material relationship with the Company which could, in the view of the Board of Directors, be reasonably expected to interfere with the exercise of the Director's independent judgement. A majority of the nominees standing for election as directors are "independent" within the meaning of NI 58-101.

**COMMITTEES OF THE BOARD OF DIRECTORS**

The Board of Directors has established three (3) standing committees: (1) an Audit Committee (the "**Audit Committee**"); (2) a Compensation Committee (the "**Compensation Committee**"); and (3) the investment committee (the "**Investment Committee**"). A brief description of each committee is set out below.

***Audit Committee.***

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The Audit Committee assists the Board in fulfilling its responsibilities for oversight of financial and accounting matters. The Audit Committee recommends the auditors to be nominated and reviews the compensation of the auditors. The Audit Committee is directly responsible for overseeing the work of the auditors, must pre-approve non-audit services, be satisfied that adequate procedures are in place for the review of our public disclosure of financial information extracted or derived from the Company's financial statements and must establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters. The current members of the Audit Ie are the Ungad Chadda (Chair), Rubsun Ho and Luis Berruga. For additional information concerning the Audit Committee please refer to the section entitled "Audit Committee" below.

***Compensation Committee.***

The Compensation Committee assists the Board in fulfilling its responsibilities for compensation philosophy and guidelines, and fixing compensation levels for the Company's executive officers. In addition, the Compensation Committee is charged with reviewing the Amended Equity Incentive Plan and proposing changes thereto, approving any awards of options under the Amended Equity Incentive Plan and recommending any other employee benefit plans, incentive awards and perquisites with respect to the Company's executive officers.

Each of the members of the Compensation Committee has direct experience that is relevant to their responsibilities regarding executive compensation of the Company. Accordingly, as a result of this collective experience, the Compensation Committee has knowledge of typical day-to-day responsibilities and challenges faced by the Company's management team, the role of a Board in reviewing the executive compensation of a reporting issuer, and first-hand knowledge regarding executive compensation policies and practices in the private sector, all of which are beneficial to the committee in the context of its review of the Company's compensation policies and practices.

The current members of the Compensation Committee are Rubsun Ho (Chair), Ungad Chadda and Luis Berruga all of whom will be standing for re-election.

***Investment Committee***

The Investment Committee is responsible for evaluating all potential investment opportunities for the Company. In assessing potential investments, the Investment Committee will consider whether or not such investments fit the investment and corporate objectives of the Company in accordance with the investment policy. The investment evaluation process may also require the Investment Committee to conduct preliminary due diligence after which a report of their findings will be presented to the Board for consideration.

The Investment Committee and designated members of the Company's management team will also monitor the Company's investment portfolio on an ongoing basis, review the status of the Company's investments and provide recommendations to the Board from time to time. The Investment Committee will conduct a quarterly review of the Company's investment portfolio in order to assess performance and market conditions. One member of the Investment Committee may be designated and authorized to handle the day-to-day trading decisions in keeping with the directions of the Board and the Investment Committee.

The Investment Committee is comprised of Leah Wald (President, Chief Executive Officer and Director), Luis Berruga (Director) and Jon Matonis (Chief Economist and Director).

**STATEMENT OF EXECUTIVE COMPENSATION**

**Introduction**

This section of the Circular explains how the Company's executive compensation program is designed and operated with respect to the President and Chief Executive Officer (referred to as the "**CEO**" in the narrative discussion in this section and under the section entitled "Executive Compensation Tables"), Chief Financial Officer ("**CFO**"), and the three other most highly compensated executive officers included in this reported financial year whose total compensation was, individually, more than $150,000 (together with the CEO and CFO collectively referred to as the "**Named Executive Officers**" or "**NEOs**", and each a "**Named Executive Officer**" or "**NEO**"). This section also identifies the objectives and material elements of compensation awarded to the NEOs and the reasons for the compensation. For a complete understanding of the executive compensation program, this Compensation Discussion and Analysis should be read in conjunction with the Summary Compensation Table and other executive compensation- related disclosure included in this Circular.

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The current NEO's of the Company are Leah Wald and Douglas Harris. During the most recently completed financial year ended September 30, 2024.

**Director and Named Executive Officer Compensation**

***Director and named executive officer compensation, excluding compensation securities***

The following table sets forth a summary of the compensation earned by the NEOs and the Directors for the Company's two most recently completed financial years, excluding compensation securities:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** | **Table of Compensation Excluding Compensation Securities** |
| **Name and position** | **Year** | **Salary,** | **Bonus** | **Committee** | **Value of** | **Value of all** | **Total** |
|  |  | **consulting fee,** | **($)** | **or meeting** | **perquisites** | **other** | **compensation** |
|  |  | **director fee,** |  | **fees ($)** | **($)** | **compensation** | **($)** |
|  |  | **retainer or** |  |  |  | **($)** |  |
|  |  | **commission** |  |  |  |  |  |
|  |  | **($)** |  |  |  |  |  |
| &nbsp;&nbsp;Leah Wald<sup>(1)</sup> | &nbsp;&nbsp;2024 | &nbsp;&nbsp;115540 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;115540 |
| &nbsp;&nbsp;President, Chief | &nbsp;&nbsp;2023 | &nbsp;&nbsp;20000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;20000 |
| &nbsp;&nbsp;Executive Officer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;and Director |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Antanas (Tony) | &nbsp;&nbsp;2024 | &nbsp;&nbsp;111100 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;111100 |
| &nbsp;&nbsp;Guoga<sup>(1)</sup> | &nbsp;&nbsp;2023 | &nbsp;&nbsp;120000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;120000 |
| &nbsp;&nbsp;Executive Chairman |  |  |  |  |  |  |  |
| &nbsp;&nbsp;and Director, Former |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Chief Executive |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Officer and Former |  |  |  |  |  |  |  |
| &nbsp;&nbsp;President |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Douglas Harris | &nbsp;&nbsp;2024 | &nbsp;&nbsp;96800 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;96800 |
| &nbsp;&nbsp;Chief Financial | &nbsp;&nbsp;2023 | &nbsp;&nbsp;77500 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;77500 |
| &nbsp;&nbsp;Officer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Jon Matonis<sup>(2)</sup> | &nbsp;&nbsp;2024 | &nbsp;&nbsp;72000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;72000 |
| &nbsp;&nbsp;Director | &nbsp;&nbsp;2023 | &nbsp;&nbsp;72000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;72000 |
| &nbsp;&nbsp;Rubsun Ho | &nbsp;&nbsp;2024 | &nbsp;&nbsp;20000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;20000 |
| &nbsp;&nbsp;Director | &nbsp;&nbsp;2023 | &nbsp;&nbsp;25000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;25000 |
| &nbsp;&nbsp;Ungad Chadda | &nbsp;&nbsp;2024 | &nbsp;&nbsp;611 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;611 |
| &nbsp;&nbsp;Director | &nbsp;&nbsp;2023 | &nbsp;&nbsp;n/a | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;n/a |
| &nbsp;&nbsp;Mohammed | &nbsp;&nbsp;2024 | &nbsp;&nbsp;87100 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;87100 |
| &nbsp;&nbsp;Adham<sup>(3)</sup> | &nbsp;&nbsp;2023 | &nbsp;&nbsp;72000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;72000 |
| &nbsp;&nbsp;Former Chief |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Investment Officer |  |  |  |  |  |  |  |
| &nbsp;&nbsp;and Director |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Peter Tutlys<sup>(4)</sup> | &nbsp;&nbsp;2024 | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a | &nbsp;&nbsp;n/a |
| &nbsp;&nbsp;Former Director | &nbsp;&nbsp;2023 | &nbsp;&nbsp;20000 | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;20000 |

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***Notes:***

&nbsp;&nbsp;&nbsp;&nbsp;*(1) Mr. Guoga resigned as the Interim President and Chief Executive Officer of the Company on July 8, 2024. Ms. Leah Wald was appointed the President and Chief Executive Officer of the Company in his stead.*

&nbsp;&nbsp;&nbsp;&nbsp;*(2) He provided services to the Company through his consulting company, The Hole of Roy, LLC, as described below.*

&nbsp;&nbsp;&nbsp;&nbsp;*(3) Mr. Adham resigned as the Chief Investment Officer and a director of the Company on January 30, 2025.*

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&nbsp;&nbsp;&nbsp;&nbsp;*(4) Mr. Tutlys resigned as a director of the Company on September 12, 2023.*

&nbsp;&nbsp;&nbsp;&nbsp;*(5) Mr. Ungad Chadda was appointed as a director of the Company on September 11, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;*(6) Mr. Luis Berruga was appointed directors of the Company following September 30, 2024.*

***Stock Options and Other Compensation Securities***

The following table sets out all compensation securities that were granted or issued to NEOs and directors of the Company during the most recently completed financial year of the Company for services provided or to be provided, directly or indirectly, to the Company or any of its subsidiaries.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** | **Compensation Securities** |
| &nbsp;&nbsp;**Name and** | &nbsp;&nbsp;**Type of** | | &nbsp;&nbsp;**Date of** | &nbsp;&nbsp;**Issue,** | &nbsp;&nbsp;**Closing price** | &nbsp;&nbsp;**Closing price** | &nbsp;&nbsp;**Expiry date** |
| &nbsp;&nbsp;**position** | &nbsp;&nbsp;**compensation** | | &nbsp;&nbsp;**issue or** | &nbsp;&nbsp;**conversion** | &nbsp;&nbsp;**of security or** | &nbsp;&nbsp;**of security or** |  |
|  | &nbsp;&nbsp;**security** | | &nbsp;&nbsp;**grant** | &nbsp;&nbsp;**or exercise** | &nbsp;&nbsp;**underlying** | &nbsp;&nbsp;**underlying** |  |
|  |  | |  | &nbsp;&nbsp;**price** | &nbsp;&nbsp;**security on** | &nbsp;&nbsp;**security at** |  |
|  |  | |  |  | &nbsp;&nbsp;**the grant** | &nbsp;&nbsp;**financial** |  |
|  |  | |  |  | &nbsp;&nbsp;**date ($)** | &nbsp;&nbsp;**year end ($)** |  |
|  |  | &nbsp;&nbsp;**Number of**<br>&nbsp;&nbsp;**compensation**<br>&nbsp;&nbsp;**securities,**<br>&nbsp;&nbsp;**number of**<br>&nbsp;&nbsp;**underlying**<br>&nbsp;&nbsp;**securities,**<br>&nbsp;&nbsp;**and**<br>&nbsp;&nbsp;**percentage of**<br>&nbsp;&nbsp;**class** |  |  |  |  |  |
| &nbsp;&nbsp;Antanas (Tony) Guoga<br>Executive Chairman and Director | &nbsp;&nbsp;Stock<br>Option<sup>(2)</sup> | &nbsp;&nbsp;1,500,000 exercisable for 1,500,000 Common Shares representing 1.01% of the outstanding number of Common Shares | &nbsp;&nbsp;July 3, 2024 | &nbsp;&nbsp;$0.115 | &nbsp;&nbsp;0.115 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;July 3, 2029 |
| &nbsp;&nbsp;Douglas Harris<br>Chief Financial Officer | &nbsp;&nbsp;Stock<br>Option<sup>(3)</sup> | &nbsp;&nbsp;1,900,000 exercisable for 1,900,000 Common Shares representing 1.30% of the outstanding number of Common Shares | &nbsp;&nbsp;August 7, 2024 | &nbsp;&nbsp;$0.155 | &nbsp;&nbsp;0.145 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;August 7, 2029 |
| &nbsp;&nbsp;Leah Wald<br>President, Chief Executive Officer and Director | &nbsp;&nbsp;Stock<br>Option<sup>(4)</sup> | &nbsp;&nbsp;1,000,000 exercisable for 1,000,000 Common Shares representing 0.67% of the outstanding number of Common Shares | &nbsp;&nbsp;July 8, 2024 | &nbsp;&nbsp;$0.115 | &nbsp;&nbsp;0.115 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;July 8, 2029 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;1,000,000 exercisable for 1,000,000 Common Shares representing 0.67% of the outstanding number of Common Shares | &nbsp;&nbsp;August 7, 2024 | &nbsp;&nbsp;$0.155 | &nbsp;&nbsp;0.145 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;July 3, 2029 |
| &nbsp;&nbsp;Jon Matonis<br>Director &nbsp;&nbsp;Stock<br>Option<sup>(3)</sup> | &nbsp;&nbsp;1,000,000 exercisable for 1,000,000 Common Shares representing 0.67% of the outstanding number of Common Shares | &nbsp;&nbsp;August 7, 2024 | &nbsp;&nbsp;$0.155 | &nbsp;&nbsp;0.145 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;August 7, 2029 |
| &nbsp;&nbsp;Rubsun Ho<br>Director &nbsp;&nbsp;Stock<br>Option<sup>(3)</sup> | &nbsp;&nbsp;1,000,000 exercisable for 1,000,000 Common Shares representing 0.67% of the outstanding number of Common Shares | &nbsp;&nbsp;August 7, 2024 | &nbsp;&nbsp;$0.155 | &nbsp;&nbsp;0.145 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;August 7, 2029 |
| &nbsp;&nbsp;Ungad Chadda<br>Director &nbsp;&nbsp;Stock<br>Option<sup>(5)</sup> | &nbsp;&nbsp;49,971 exercisable for 49,971 Common Shares representing 0.03% of the outstanding number of Common Shares | &nbsp;&nbsp;September 11, 2024 | &nbsp;&nbsp;$0.145 | &nbsp;&nbsp;0.15 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;September 11, 2029 |
| &nbsp;&nbsp;Mohammed Adham<br>Former Chief Investment Officer and Director &nbsp;&nbsp;Stock<br>Option<sup>(2)</sup> | &nbsp;&nbsp;1,500,000 exercisable for 1,500,000 Common Shares representing 1.01% of the outstanding number of Common Shares | &nbsp;&nbsp;July 3, 2024 | &nbsp;&nbsp;$0.115 | &nbsp;&nbsp;0.115 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;July 3, 2029 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Stock<br>Option<sup>(3)</sup> | &nbsp;&nbsp;1,000,000 exercisable for 1,000,000 Common Shares representing 0.67% of the outstanding number of Common Shares | &nbsp;&nbsp;August 7, 2024 | &nbsp;&nbsp;$0.155 | &nbsp;&nbsp;0.145 | &nbsp;&nbsp;0.24 | &nbsp;&nbsp;August 7, 2029 |

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**Notes:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Calculated on a partially diluted basis as at September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The fair value of each stock option at the date of grant was estimated using Black-Scholes option pricing model to be consistent with the audited consolidated financial statements and included the following assumptions: share price of $0.115, dividend yield of 0%, expected volatility, based on historical volatility, of 96.0%, risk free interest of 3.57% and expected life of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The fair value of each stock option at the date of grant was estimated using Black-Scholes option pricing model to be consistent with the audited consolidated financial statements and included the following assumptions: share price of $0.155, dividend yield of 0%, expected volatility, based on historical volatility, of 95.9%, risk free interest of 3% and expected life of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The fair value of each stock option at the date of grant was estimated using Black-Scholes option pricing model to be consistent with the audited consolidated financial statements and included the following assumptions: share price of $0.115, dividend yield of 0%, expected volatility, based on historical volatility, of 96.0%, risk free interest of 3.46% and expected life of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The fair value of each stock option at the date of grant was estimated using Black-Scholes option pricing model to be consistent with the audited consolidated financial statements and included the following assumptions: share price of $0.145, dividend yield of 0%, expected volatility, based on historical volatility, of 95.6%, risk free interest of 2.75% and expected life of 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) As at September 30, 2024, the officers and directors of the Company who had such positions with the Company as at such date held options as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Guoga held 2,000,000 stock options to purchase an aggregate of 2,000,000 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Harris held 2,179,500 stock options to purchase an aggregate of 2,179,500 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Adham held 2,569,875 stock options to purchase an aggregate of 2,569,875 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Matonis held 1,879,500 stock options to purchase an aggregate of 1,879,500 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Ho held 1,279,500 stock options to purchase an aggregate of 1,279,500 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ms. Wald held 3,279,500 stock options to purchase an aggregate of 3,279,500 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mr. Chadda held 49,971 stock options to purchase an aggregate of 49,971 Common Shares and no other compensation securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Exercise of Compensation Securities by Directors and NEOs***

None of the NEOs or Directors of the Company exercised any compensation securities during the most recently completed financial year of the Company.

**Amended Equity Incentive Plan and Other Incentive Plans**

The Company adopted the Amended Equity Incentive Plan to allow for a variety of equity-based awards that provide different types of incentives to be granted to certain of the executive officers, employees and consultants of the Company (in the case of Options, PSUs, DSUs and RSUs. Each Award will represent the right to receive Common Shares, or in the case of PSUs and RSUs, DSUs and Common Shares or cash, in accordance with the terms of the Amended Equity Incentive Plan.

Under the terms of the Amended Equity Incentive Plan, the Board, or if authorized by the Board, the Compensation Committee, may grant Awards to eligible participants, as applicable. Participation in the Amended Equity Incentive Plan is voluntary and, if an eligible participant agrees to participate, the grant of Awards will be evidenced by a grant agreement with each such participant. The interest of any participant in any Award is not assignable or transferable, whether voluntary, involuntary, by operation of law or otherwise, other than by will or the laws of descent and distribution.

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The Amended Equity Incentive Plan provides those appropriate adjustments, if any, will be made by the Board in connection with a reclassification, reorganization or other change of the Common Shares, share split or consolidation, distribution, merger or amalgamation, in the Common Shares issuable or amounts payable to preclude a dilution or enlargement of the benefits under the Amended Equity Incentive Plan.

The maximum number of Common Shares reserved for issue pursuant to the exercise of Awards in the aggregate, under the Amended Equity Incentive Plan, is 10% of the aggregate number of Common Shares issued and outstanding from time to time, being 16,172,118 Common Shares as of the date of this Management Information Circular. As at the date of this Management Information Circular, a total of 8,162,191 Options are issued and outstanding under the Amended Equity Incentive Plan, representing approximately 5.05% of the issued and outstanding Common Shares, and 1,113,669 RSUs and no PSUs or DSUs are issued and outstanding under the Amended Equity Incentive Plan.

For the purposes of calculating the maximum number of Common Shares reserved for issue under the Amended Equity Incentive Plan, any issue from treasury by the Company that is issued in reliance upon an exemption under applicable stock exchange rules applicable to equity-based compensation arrangements used as an inducement to person(s) or company(ies) not previously employed by and not previously an Insider of the Company will not be included. All of the Common Shares covered by the exercised, cancelled or terminated Awards will automatically become available Common Shares for the purposes of Awards that may be subsequently granted under the Amended Equity Incentive Plan.

The maximum number of Common Shares that may be: (i) issued to insiders of the Company within any one-year period; or (ii) issuable to insiders of the Company at any time, in each case, under the Amended Equity Incentive Plan alone, or when combined with all of the Company's other share-based compensation arrangements, may not exceed 10% of the aggregate number of Common Shares issued and outstanding from time to time determined on a non-diluted basis.

All Options granted under the Amended Equity Incentive Plan vest in accordance with the terms of the resolutions of the Board approving the grant of such Options. An Option is exercisable during a period established by the Board which commences on the date of the grant and terminates no later than five (5) years after the date of the granting of the Option or such shorter period as the Board may determine. The minimum exercise price of an Option will be determined based on the closing price of the Common Shares on the Canadian Securities Exchange, or any other exchange on which the Common Shares are or may be listed for trading (the "**Exchange**") on the last trading day before the date such Option is granted. The Amended Equity Incentive Plan provides that the exercise period will automatically be extended if the date on which it is scheduled to terminate falls during a black-out period. In such cases, the extended exercise period will terminate ten business days after the last day of the black-out period. In order to facilitate the payment of the exercise price of the Options, the Amended Equity Incentive Plan has a cashless exercise feature pursuant to which a participant may elect to undertake a broker-assisted "cashless exercise" subject to the procedures set out in the Amended Equity Incentive Plan, including the consent of the Board, where required.

The following table describes the impact of certain events upon the rights of holders of Options under the Amended Equity Incentive Plan, including termination for cause, resignation, retirement, termination, and death, subject to the terms of a participant's employment agreement, grant agreement and the change of control provisions described below:

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| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Event Provisions</u>** | &nbsp;&nbsp;**<u>Provisions</u>** |
| &nbsp;&nbsp;Termination for cause | &nbsp;&nbsp;Immediate forfeiture of all vested and unvested Options. |
| &nbsp;&nbsp;Resignation | &nbsp;&nbsp;The earlier of the original expiry date and 90 days after resignation to exercise vested Options or such longer period as the Board may determine in its sole discretion, so long as it is not more than one year following the date of resignation. |

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| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Event Provisions</u>** | &nbsp;&nbsp;**<u>Provisions</u>** |
| &nbsp;&nbsp;Retirement | &nbsp;&nbsp;All Options will expire, if not exercised within the 90 days after retirement or at the end of the option period, whichever is earlier. |
| &nbsp;&nbsp;Termination or cessation | &nbsp;&nbsp;Immediately upon termination for cause. |
| &nbsp;&nbsp;Death | &nbsp;&nbsp;In the case of death, previously granted to the holder shall be exercisable until the end of the Option period or until the date that is not later than one year after the date of death or permanent disability of such holder, whichever is earlier. |

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The terms and conditions of grants of RSUs, DSUs and PSUs, including the quantity, type of award, grant date, vesting conditions, vesting periods, settlement date and other terms and conditions with respect to these Awards, will be set out in the participant's grant agreement. Impact of certain events upon the rights of holders of these types of Awards, including termination for cause, resignation, retirement, termination other than for cause and death or long-term disability, will be set out in the participant's grant agreement.

In connection with a change of control of the Company, the Board will take such steps as are reasonably necessary or desirable to cause the conversion or exchange or replacement of outstanding Awards into, or for, rights or other securities of substantially equivalent (or greater) value in the continuing entity, as applicable. If the surviving successor or acquiring entity does not assume the outstanding Awards, or if the Board otherwise determines in its discretion, the Company will give written notice to all participants advising that the Amended Equity Incentive Plan will be terminated effective immediately prior to the change of control and all Awards, as applicable, will be deemed to be vested and, unless otherwise exercised, settle, forfeited or cancelled prior to the termination of the Amended Equity Incentive Plan, will expire or, with respect to the RSUs, DSUs and PSUs be settled, immediately prior to the termination of the Amended Equity Incentive Plan. In the event of a change of control, the Board has the power to: (i) make such other changes to the terms of the Awards as it considers fair and appropriate in the circumstances, provided such changes are not adverse to the participants; (ii) otherwise modify the terms of the Awards to assist the participants to tender into a takeover bid or other arrangement leading to a change of control, and thereafter; and (iii) terminate, conditionally or otherwise, the Awards not exercised or settled, as applicable, following successful completion of such change of control. If the change of control is not completed within the time specified therein (as the same may be extended), the Awards which vest will be returned by the Company to the participant and, if exercised or settled, as applicable, the Common Shares issued on such exercise or settlement will be reinstated as authorized but unissued Common Shares and the original terms applicable to such Awards will be reinstated.

The Board may, in its sole discretion, suspend or terminate the Amended Equity Incentive Plan at any time, or from time to time, amend, revise or discontinue the terms and conditions of the Amended Equity Incentive Plan or of any securities granted under the Amended Equity Incentive Plan and any grant agreement relating thereto, subject to any required regulatory and Exchange approval, provided that such suspension, termination, amendment, or revision will not adversely alter or impair any Award previously granted except as permitted by the terms of the Amended Equity Incentive Plan or as required by applicable laws.

The Board may amend the Amended Equity Incentive Plan or any securities granted under the Amended Equity Incentive Plan at any time without the consent of a participant provided that such amendment is required to: (i) not adversely alter or impair any Award previously granted except as permitted by the terms of the Amended Equity Incentive Plan; (ii) be in compliance with applicable law and subject to any regulatory approvals including, where required, the approval of the Exchange; and (iii) be subject to shareholder approval, where required by law, the requirements of the Exchange or the Amended Equity Incentive Plan, provided however that shareholder approval will not be required for the following amendments and the Board may make any changes which may include but are not limited to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amendments of a general "housekeeping" or clerical nature that, among others, clarify, correct or rectify any ambiguity, defective provision, error or omission in the Amended Equity Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amendments to the eligibility criteria and limits for participation in the Amended Equity Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a change to the termination provisions of an Award or of the Amended Equity Incentive Plan, provided that the change does not entail an extension beyond an Award's original expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any amendment necessary to comply with applicable law or the requirements of the Exchange or any other regulatory body having authority over the Company, the Amended Equity Incentive Plan or the Shareholders (provided, however, that the Exchange will have the overriding right in such circumstances to require shareholder approval of any such amendments); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) amendments to the provisions relating to the administration of the Amended Equity Incentive Plan.

The above summary is intended to be a brief description of the Amended Equity Incentive Plan and is qualified in its entirety by the full text of the Amended Equity Incentive Plan. The Company has no equity compensation plans other than the Amended Equity Incentive Plan.

**Employment, Consulting and Management Agreements**

The following is a summary of the material terms of each agreement or arrangement under which compensation was provided during the Company's most recently completed financial year or is payable in respect of services provided to the company or any of its subsidiaries that were performed by a director or named executive officer, or performed by any other party but are services typically provided by a director or a named executive officer.

***Leah Wald***

On July 10, 2024, Ms. Leah Wald and the Company entered into an employment agreement for Ms. Wald's services as the Chief Executive Officer (the "**Wald Agreement**"). Pursuant to the Wald Agreement, Ms. Wald is paid an annual base salary of USD$225,000 per annum. Ms. Wald may receive annual bonus as determined by the Board and is eligible to participate in the Amended Equity Incentive Plan. The Wald Agreement is for an indefinite period of time until mutually terminated by parties. Ms. Wald may terminate the agreement by providing 30 days written notice, which may be waived by the Company. The Company may terminate the Wald Agreement at any time for just cause. In the event Ms. Wald's employment is terminated without cause, Ms. Wald will be entitled to receive an amount equal to the salary and bonus remuneration received by Ms. Wald for the previous 6 months in addition to accrued but unpaid salary and bonus remuneration, if any, and any entitlement in respect of vacation as contemplated in the employment agreement. All unvested Options granted within twelve (12) months of the termination date shall immediately vest and the terms of such Options shall continue until the late of: (a) the expiry date under such Option; and (b) one year following the termination date. In the event Ms. Wald 's employment is terminated due to a change in control of the Company, Ms. Wald will be entitled to receive an amount equal to the salary and bonus remuneration received by Ms. Wald for the previous 6 months in addition to accrued but unpaid salary and bonus remuneration, if any, and any entitlement in respect of vacation as contemplated in the employment agreement. On March 1, 2025, the Company and Ms. Wald entered into an amending agreement increasing Ms. Wald's salary to USD$300,000 per annum.

***Tony Guoga***

During the most recently completed financial year ended September 30, 2024, Tony Guoga provided his services to the Company pursuant to the terms of an independent consultant agreement (the "**Guoga Agreement**"), effective August 8, 2020, between the Company and Tony Guoga. The Guoga Agreement provides that Mr. Guoga will provide to the Company executive, advisory and management services to the Company in the role as Chief Executive Officer of the Company and shall devote approximately 50% of his monthly time to such services. For his services under the Guoga Agreement, the Company agreed to pay to Mr. Guoga the nominal sum of €1.00 per annum and to reimburse him his expenses incurred in performing such services. Either the Company or Mr. Guoga may terminate the Guoga Agreement by providing 30 days' written notice to the other party. If the Company terminates the Guoga Agreement without cause, it will pay to Mr. Guoga a lump sum payment equal to three months fees. Upon the termination of the Guoga Agreement Mr. Guoga shall, at the written request of the Board, resign as a director of the Company and from all other offices held with the Company and any of its subsidiaries, as applicable. The Guoga Agreement contains customary provisions restricting the disclosure of the Company's confidential information and provides that Mr. Guoga shall not solicit the employees or consultants of the Company for a period of 12 months from the termination of thereof. On November 11, 2021, concurrent with the appoint of Jeffrey Gao as Chief Executive Officer, Mr. Guoga was appointed Executive Chairman and the Guoga Agreement was amended to include a payment of $10,000 per month to Mr. Guoga for his services as Executive Chairman, commencing November 11, 2021, which was reduced to $5,000 per month upon the appointment of Ms. Wald as Chief Executive Officer.

------

***Jon Matonis***

During the most recently completed financial year ended September 30, 2024, Jon Matonis provided his services to the Company pursuant to the terms of a consulting agreement (the "**Matonis Agreement**"), dated December 1, 2018, as amended on July 31, 2020, between the Company and The Hole of Roy, LLC ("**HOR**"). The Matonis Agreement provides that HOR will provide consulting services to the Company. Under the terms of the Matonis Agreement, the Company agreed to pay to HOR a monthly fee of $6,000, and to reimburse him for expenses incurred by him in performing the services under the Matonis Agreement. Either the Company or HOR may terminate the Matonis Agreement by providing 30 days' written notice to the other party. The Matonis Agreement contains customary provisions restricting the disclosure of the Company's confidential information.

***Douglas Harris***

Douglas Harris, the Company's Chief Financial Officer provides his services to the Company pursuant to the terms of a consulting agreement (the "**Harris Agreement**"), dated April 9, 2021, between the Company and Harris Capital Company ("**HCC**"). The initial term of the Harris Agreement is a period of 24 months, commencing on April 12, 2021. The Harris Agreement provides that HCC will provide to the Company the services of Douglas Harris as the Company's Chief Financial Officer on a consultancy basis. Under the terms of the Harris Agreement, the Company agreed to pay to HCC a monthly fee of $5,000, and to reimburse him for expenses incurred by him in performing the services under the Harris Agreement. In addition, the Company also made a one-time grant of stock options, entitling Mr. Harris to purchase 1,500,000 Common Shares at a price of $0.30 per share for a period of five years, subject to vesting provisions. Either the Company or HCC may terminate the Harris Agreement by providing 90 days' prior written notice to the other party. If the Company or HCC provides such written notice of termination, the Company shall be liable only for the consulting fees which are due and payable by the Company for the period up to, and including, the effective date of termination. In addition, in the event that a change of control should occur during the term of the Harris Agreement with respect to the Company, and the parties newly in control of the Company do not wish to retain HCC to perform the services, then HCC shall be entitled to an immediate pay-out of 12 months of monthly consulting fees. The Harris Agreement contains customary provisions restricting the disclosure of the Company's confidential information. The Harris Agreement was amended to include a payment of $7,500 per month to HCC for Mr. Harris' services as Chief Financial Officer, commencing April 1, 2023. On January 1, 2025, the Company entered into an amending agreement increase the consulting fees to a monthly fee of CAD$25,000.

***Mohammed Adham***

During the most recently completed financial year ended September 30, 2024, Mohammed Adham provided his services to the Company pursuant to the terms of a consulting agreement (the "**Adham Agreement**"), dated June 28, 2018, as amended on May 31, 2024, between the Company and Mr. Adham. The Adham Agreement provides that Mr. Adham will provide consulting services to the Company, and act as the Company's Chief Investment Officer. Under the terms of the Adham Agreement, the Company agreed to pay to Mr. Adham a monthly fee of USD$6,000 (plus all applicable taxes), and to reimburse him for expenses incurred by him in performing the services under the Adham Agreement. Either the Company or Mr. Adham may terminate the Adham Agreement by providing 30 days' written notice to the other party. The Matonis Agreement contains customary provisions restricting the disclosure of the Company's confidential information.

------

**SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS**

The following table sets forth information with respect to all compensation plans of the Company under which equity securities are authorized for issue as of September 30, 2024:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Plan category** | &nbsp;&nbsp;**Number of securities to be** | &nbsp;&nbsp;**Weighted-average exercise** | &nbsp;&nbsp;**Number of securities remaining** |
|  | &nbsp;&nbsp;**issued upon exercise of** | &nbsp;&nbsp;**price of outstanding options** | &nbsp;&nbsp;**available for future issue under** |
|  | &nbsp;&nbsp;**outstanding options and** | &nbsp;&nbsp;**and rights** | &nbsp;&nbsp;**equity compensation plans** |
|  | &nbsp;&nbsp;**rights (#) <sup>(1)</sup>** | &nbsp;&nbsp;**($)** | &nbsp;&nbsp;**(#)** |
| &nbsp;&nbsp;**Equity compensation plans approved by securityholders**  | &nbsp;&nbsp;14617346 | &nbsp;&nbsp;0.132 | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;**Equity compensation plans not approved by securityholders**  | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil |
| &nbsp;&nbsp;**Total** | &nbsp;&nbsp;14617346 | &nbsp;&nbsp;0.132 | &nbsp;&nbsp;1 |

---

*Notes:*

(1) The Equity Incentive Plan is a "rolling" stock option plan whereby the maximum number of Common Shares that may be reserved for issue may not exceed 10% of the number of outstanding Common Shares at the time of the stock option grant. As at the date of this Circular, 16,172,118 Awards may be reserved for issuance pursuant to the Equity Incentive Plan, 8,162,191 stock options and 1,113,669 RSUs have been issued and 6,896,258 Awards are still available for issue.

**INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS**

Other than as otherwise disclosed in this Circular, no informed person or proposed director of the Company, or associate or affiliate of any of the foregoing, has had any material interest, direct or indirect, in any transaction since the commencement of the most recently completed financial year of the Company or in any proposed transaction which has materially affected or would materially affect the Company.

On October 21, 2024, the Company and Mr. Antanas Guoga, a director and the Executive Chairman of the Company, entered into a credit facility agreement, as amended on January 6, 2025 (the "**Credit Facility Agreement**"), providing for a $25 million unsecured, revolving demand credit facility (the "**Credit Facility**").

Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to $25 million (the "**Commitment Amount**") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to January 6, 2027 (the "**Maturity Date**"). The drawn and unpaid portion of the Commitment Amount (the "**Principal Balance**") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

As of the date of this Management Information Circular, $16,395,037.57 (inclusive of $214,865.50 of accrued interest) of the Credit Facility has been drawn.

**INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS**

No director or officer of the Company or person who acted in such capacity in the last financial year of the Company, or any other individual who at any time during the most recently completed financial year of the Company was a director of the Company or any associate of the Company, is indebted to the Company, nor is any indebtedness of any such person to another entity the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company.

**DIRECTORS' AND OFFICERS' INSURANCE AND INDEMNIFICATION**

In accordance with the provisions of the *Business Corporations Act* (Ontario), the Company's by-laws provide that the Company will indemnify a director or officer, a former director or officer, or a person who acts or acted at the Company's request as a director or officer of a body corporate of which the Company is or was a shareholder or creditor, and his or her heirs and legal representatives, against all costs, charges and expenses, including amounts paid to settle an action or to satisfy a judgment, reasonably incurred in respect of any civil, criminal or administrative action or proceeding to which he or she was made a party by reason of being or having been a director or officer of the Company or such other company if he or she acted honestly and in good faith with a view to the best interests of the Company and, in the case of a criminal or administrative action or proceeding that is enforced by monetary penalty, he or she had reasonable grounds to believe that his or her conduct was lawful. If the Company becomes liable under the terms of its by-laws, the insurance coverage will extend to its liability; however, each claim will be subject to a deductible.

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**External Auditor Service Fees**

The following fees were incurred by the Company for the financial years ended September 30, 2024, and 2023 for professional services rendered to the Company:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Fees** | &nbsp;&nbsp;**2024** | &nbsp;&nbsp;**2023** |
| &nbsp;&nbsp;Audit Fees<sup>(1)</sup> | &nbsp;&nbsp;149160 | &nbsp;&nbsp;137000 |
| &nbsp;&nbsp;Audit-Related Fees<sup>(2)</sup> | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil |
| &nbsp;&nbsp;Tax Fees<sup>(3)</sup> | &nbsp;&nbsp;24521 | &nbsp;&nbsp;5000 |
| &nbsp;&nbsp;All Other Fees Other Fees<sup>(4)</sup> | &nbsp;&nbsp;Nil | &nbsp;&nbsp;Nil |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Audit Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for audit services. Included in these aggregate fees are the amounts for the audit of the annual consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Audit-Related Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for assurance and related services by the current or former auditor, as applicable, that are reasonably related to the performance of the audit or review of the Company's financial statements and are not Audit Fees, including for consultations on accounting developments and the accounting for potential corporate transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Tax Fees are the aggregate fees billed or accrued, as the case may be, for the applicable period in each of the last two fiscal years for professional services rendered, as applicable, for tax compliance, tax advice, and tax planning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) All Other Fees are the aggregate fees billed or accrued, as the case may be, by the auditor of the Company for the applicable period in each of the last two fiscal years for products and services provided by the current or former auditor, as applicable, other than Audit Fees, Audit-Related Fees or Tax Fees.

**AUDIT COMMITTEE INFORMATION REQUIRED IN THE**

**INFORMATION CIRCULAR OF A VENTURE ISSUER**

The Company has filed an Annual Information Form (the "**AIF**") for the fiscal year ended September 30, 2024, on SEDAR+ at <u>www.sedarplus.ca</u>, which contains, among other things, all of the financial disclosure and also the Charter of the Company's Audit Committee as required under NI 52-110. In particular, the information that is required to be disclosed in Form 52-110F1 of NI 52-110 may be found under the heading "Audit Committee Disclosure" in the AIF.

**ADDITIONAL INFORMATION**

**Interest of Certain Persons or Companies in Matters to be Acted Upon**

Except as otherwise disclosed in this Circular, no person who has been a director or executive officer of the Company since the beginning of the last financial year and no associate or affiliate of any such director or executive officer has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Meeting.

------

**Interest of Informed Persons in Material Transactions**

Other than as stated elsewhere in this Circular, no informed person, director, executive officer, nominee for director, any person who beneficially owns, directly or indirectly, Common Shares carrying more than 10% of the voting rights attached to all outstanding shares of the Company, or any associated or affiliate of such persons, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any transaction or any proposed transaction which has materially affected or would materially affect the Company.

**Other Business**

Management of the Company knows of no matters to come before the Meeting other than the matters referred to in the Notice of Meeting. However, if matters not now known to management should come before the Meeting, Common Shares represented by proxies solicited by management will be voted on each such matter in accordance with the best judgment of the nominees voting same.

**AVAILABILITY OF DISCLOSURE DOCUMENTS**

Additional information relating to the Company is available on SEDAR+ at <u>www.sedarplus.ca</u>, the CSE's website at <u>www.thecse.com</u> under the Company's corporate profile and on the Company's website at <u>https://solstrategies</u><u>.io/</u>. Financial information about the Company is provided in the Company's comparative financial statements and management's discussion and analysis of financial and operating results for the financial year ended September 30, 2024.

A copy of this Circular has been sent to each director of the Company, to the applicable regulatory authorities, to each shareholder entitled to receive notice of the Meeting and to the auditor of the Company. If you would like to obtain, at no cost to you, a copy of the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the comparative financial statements and MD&A of the Company for the year ended September 30, 2024, together with the accompanying report of the auditor thereon or any interim financial statements or MD&A of the Company for periods subsequent to September 30, 2024, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Circular,

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Please send your request to:** | &nbsp;&nbsp;**Sol Strategies Inc.** |
|  | &nbsp;&nbsp;**217 Queen Street West, Suite 401** |
|  | &nbsp;&nbsp;**Toronto, ON M5V 0R2** |
|  | &nbsp;&nbsp;**email: doug@cypherpunkholdings.com** |
|  | &nbsp;&nbsp;**Attention: Doug Harris** |

---

**APPROVAL OF THE BOARD OF DIRECTORS**

The contents of this Circular and the sending of it to the Shareholders, to each director of the Company, to the Company's auditor and to the appropriate governmental agencies have been approved by the Board.

**DATED** the 9<sup>th</sup> day of May, 2025.

**BY ORDER OF THE BOARD**

*"Antanas Guoga" (signed)*

Executive Chairman

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**APPENDIX A**

**CORPORATE GOVERNANCE DISCLOSURE**

The Company believes that effective corporate governance practices are fundamental to the overall success of a company. National Instrument 58-101 - *Disclosure of Corporate Governance Practices* ("**NI 58-101**") requires the Company to disclose its corporate governance practices by providing in the Circular the disclosure required by Form 58-101F2 - *Corporate Governance Disclosure (Venture Issuers)* ("**Form 58-101F2**"). National Instrument 58-201 - *Corporate Governance Guidelines* establishes corporate governance guidelines which apply to all public companies. The Company's disclosure of corporate governance practices pursuant to NI 58-101 is set out below in the form required by Form 58-101F2:

 **●&nbsp;&nbsp;&nbsp;&nbsp; Rubsun Ho** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Ungad Chadda** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Global Uranium Inc.** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Integral Metals Inc.** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Agrinam Corp.** 

 **Antanas Guoga** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Banxa Holdings Inc.** 

 **●&nbsp;&nbsp;&nbsp;&nbsp; Tony G Co-Investment Holdings Ltd.** 

------

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp;**Upon becoming a member of the Board, an individual will be provided with copies of the Company's principal continuous disclosure documents and a series of interviews or meetings with senior personnel in order to be informed on various business, operational and organizational aspects of the Company. Orientation will also include such things as:** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● organized visits to the Company's facilities;**  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● familiarization with the service providers and partners;**  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● company history and other relevant data;** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● information concerning mission, goals, strategy, philosophy and major policies of the Company;** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● review of recent analyst reports;** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● information pertaining to personal liability and insurance coverage;**  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● rules for purchasing and selling securities of the Company; and**  |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**● rules regarding insider information.** |
|  |  | &nbsp;&nbsp;**Continuing education could include: reports from the Chief Executive Officer on industry developments to the Board of Directors at each meeting. Directors are also regularly provided with copies of the Company's ongoing continuous disclosure documents, and receive management presentations and information and presentations from the Company's external advisors and experts, as appropriate, from time to time.** |
| &nbsp;&nbsp;**4.** | &nbsp;&nbsp;**Ethical Business Conduct** |  |
|  | &nbsp;&nbsp;**Describe what steps, if any, the board takes to encourage and promote a culture of ethical business conduct.**  | &nbsp;&nbsp;**The Board of Directors has a written disclosure policy aimed at informative, timely and broadly disseminated disclosure of material information to the market, in accordance with applicable securities legislation.**<br>**The Board has also established a written insider trading policy which is intended as a guideline to eliminate any transaction by an insider which would not be in full compliance with applicable securities legislation or which, by implication, might suggest trading by insiders was carried out when they were in possession of privileged or material information not yet disclosed to the public.** |

---

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**5.** | &nbsp;&nbsp;**Nomination of Directors** |  |
|  | &nbsp;&nbsp; **Disclose what steps, if any, are taken to identify new candidates for board nomination, including:**<br> **(i) who identifies new candidates; and**<br> **(ii) the process of identifying new candidates.** | &nbsp;&nbsp; **The directors of the Company are encouraged to submit names of potential directors. Candidates' names are also obtained through analysis of other corporate boards and through reviews of senior corporate executives in other types of enterprises. Shareholders are also welcome to submit names for consideration. Potential director candidates are reviewed by the Board on a regular basis as needed.**<br> **The Board reviews the size, structure and composition of the Board from time to time so that when a vacancy occurs, the most appropriate candidate can be readily identified. When a vacancy occurs, the Board reviews and selects suitable candidates.**<br>|
|  |  | &nbsp;&nbsp; **Once the Board agrees on the best candidate, an approach is made to that person in a manner deemed most appropriate by the Board. The approach would be followed by personal interviews with the prospective director involving the Chairman of the Board and other Board members as circumstances warrant.**<br>**If there is agreement to serve as a director, a Board orientation process is then carried out by the Chairman of the Board. After appointment or election, as the case may be, orientation with management is carried out.** |
| &nbsp;&nbsp;**6.** | &nbsp;&nbsp;**Compensation** |  |
|  | &nbsp;&nbsp; **Disclose what steps, if any, are taken to determine compensation for the directors and CEO, including:**<br>**(i) who determines compensation; and**<br> **(ii) the process of determining compensation.** | &nbsp;&nbsp; **The Compensation Committee is charged with developing, for recommendation to the Board, a compensation philosophy and guidelines for the CEO and other executive officers of the Company. It recommends to the Board the level of compensation for the CEO and other executive officers of the Company. The Compensation Committee also considers and, if deemed appropriate, makes recommendations to the Board about any option or benefit plans to be established for the CEO and other executive officers of the Company.**<br>**The Compensation Committee is also charged with developing, for recommendation to the Board, a compensation philosophy and guidelines for the directors. It recommends the level of compensation for the directors based on a review of compensation paid by other public companies of the same size as the Company and in the same industry as the Company.**<br> **Further details are also set out in the Circular under the heading "Compensation Discussion and Analysis".** |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**7.** | &nbsp;&nbsp;**Other Board Committees** |  |
|  | &nbsp;&nbsp;**If the board has standing committees other than the audit, compensation and nominating committees, identify the committees and describe their function.**  | &nbsp;&nbsp;**Other than the Audit Committee, the Investment Committee and the Compensation Committee, there are no other standing committees of the Board. Further details are also set out in the Circular under the heading "Committees of the Board of Directors".**  |
| &nbsp;&nbsp;**8.** | &nbsp;&nbsp;**Assessments** |  |
|  | &nbsp;&nbsp;**Disclose what steps, if any, that the board takes to satisfy itself that the board, the committees and its individual directors are performing effectively.**  | &nbsp;&nbsp;**The Board conducts annually an evaluation of the effectiveness of the Board and its committees. In such evaluation, the Board assesses the effectiveness of the Board and its committees, the adequacy of information provided to directors, communication processes between the Board and management, agenda planning for Board and committee meetings and strategic planning.**  |

---

------

**APPENDIX "C"**

**CHANGE OF AUDITOR FILING PACKAGE**

*See attached.*

------

**SOL STRATEGIES INC.**

**NOTICE OF CHANGE OF AUDITORS**

**TO:** Alberta Securities Commission

British Columbia Securities Commission

Manitoba Securities Commission

Ontario Securities Commission

Financial and Consumer Affairs Authority of Saskatchewan

**AND TO:** Kingston Ross Pasnak LLP

Davidson & Company LLP

Sol Strategies Inc. (the "**Corporation**"), gives the following notice in accordance with Section 4.11 of National Instrument 51-102 *- Continuous Disclosure Obligations* ("**NI 51-102**"):

1. At the request of the Corporation, Kingston Ross Pasnak LLP (the "**Former Auditor**") has resigned as auditor of the Corporation effective January 29, 2025.

2. On January 29, 2025, the Corporation appointed Davidson & Company LLP (the "**Successor Auditor**") to replace the Former Auditor as auditor of the Corporation.

3. The resignation of the Former Auditor and the appointment of the Successor Auditor were considered and approved by the Corporation's Audit Committee and Board of Directors.

4. The auditor's reports of the Former Auditor, on the financial statements of the Corporation for the fiscal years ended September 30, 2024 and September 30, 2023, respectively, and for any subsequent period ending prior to the date of resignation did not express a modified opinion.

5. In the opinion of the Corporation, no "reportable event" as defined in NI 51-102 has occurred.

6. The contents of this Notice and letters written by the Former Auditor addressed to the applicable Canadian securities regulatory authorities pursuant to Sections 4.11(5) and 4.11(6) of NI 51-102 have been reviewed by the Corporation's Audit Committee and the Board of Directors.

Dated February 12, 2025.

---

| | |
|:---|:---|
| **SOL STRATEGIES INC.** | **SOL STRATEGIES INC.** |
| *Per:* | &nbsp;&nbsp;*"Doug Harris"* |
|  | &nbsp;&nbsp;Name: Doug Harris |
|  | &nbsp;&nbsp;Title: Chief Financial Officer |

---

------

![](exhibit99-116x001.jpg)

February 12, 2025

Alberta Securities Commission

British Columbia Securities Commission

Manitoba Securities Commission

Ontario Securities Commission

Financial and Consumer Affairs Authority of Saskatchewan

**SOL STRATEGIES INC. - NOTICE OF CHANGE OF AUDITORS**

Dear Sirs/Mesdames:

We acknowledge receipt of a Notice of Change of Auditor (the "Notice") dated February 6, 2025, delivered to us by the Corporation in respect of the change of auditor of the Corporation. In accordance with section 4.11 of National Instrument 51-102 - Continuous Disclosure Obligations, we have reviewed the information contained in the Notice and we agree with each of the statements contained therein pertaining to our firm.

Yours truly,

*/s/ Kingston Ross Pasnak LLP*

***Kingston Ross Pasnak LLP***

Charted Professional Accountants

![](exhibit99-116x002.jpg)

------

![](exhibit99-116x003.jpg)

February 6, 2025

**Alberta Securities Commission**

**British Columbia Securities Commission**

**Manitoba Securities Commission**

**Ontario Securities Commission**

**Financial and Consumer Affairs Authority of Saskatchewan**

Dear Sirs / Mesdames:

---

| | |
|:---|:---|
| **Re:** | **Sol Strategies Inc. (the "Company")** |
| | **Notice Pursuant to NI 51-102 - Change of Auditor** |

---

As required by the National Instrument 51-102 and in connection with our proposed engagement as auditor of the Company, we have reviewed the information contained in the Company's Notice of Change of Auditor, dated February 6, 2025 (the "Notice"), and, based on our knowledge of such information at this time, we agree with the information contained in the Notice pertaining to our firm.

Yours very truly,

*/s/ Davidson & Company LLP*

**DAVIDSON & COMPANY LLP**

Chartered Professional Accountants

**cc: The Canadian Securities Exchange**

![](exhibit99-116x004.jpg)

------

## Exhibit 99.117

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![](exhibit99-117x001.jpg)

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![](exhibit99-117x002.jpg)

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## Exhibit 99.118

------

**SOL STRATEGIES INC.**

401-217 Queen Street

Toronto, Ontario M5V 0R2

**NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS**

**NOTICE IS HEREBY GIVEN** that the annual and special meeting (the "**Meeting**") of shareholders ("**Shareholders**") of Sol Strategies Inc. (the "**Company**") will be held at the office of Irwin Lowy LLP located at 217 Queen Street West, Suite 401 Toronto, ON M5V 0R2; on Thursday, June 19, 2025, at 12:00 p.m. (Toronto Time) in order to:

1. to receive and consider the audited consolidated financial statements of the Company for the year ended September 30, 2024, and the report of the auditors thereon;

2. to elect directors of the Company to hold office until the next annual meeting of Shareholders;

3. to appoint the auditors of the Company and to authorize the directors to fix their remuneration;

4. to consider and, if deemed advisable, to pass, with or without variation, a special resolution to effect the consolidation of all of the issued and outstanding common shares of the Company on the basis of up to ten (10) old common shares for one (1) new common share, as more fully described in the accompanying management information circular;

5. to consider and, if deemed advisable, to pass, with or without variation, a resolution to ratify, confirm and approve a resolution of the directors of the Company amending the stock option plan (the "**Amended Equity Incentive Plan**") for directors, officers, employees and consultants of the Company and ratifying certain grants of restricted share units under the Amended Equity Incentive Plan; and

6. to transact such other business as may properly come before the Meeting or any adjournments or postponements thereof.

The full text of the special resolutions referred to in item 4 above are attached to this notice as Exhibit "A".

A shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must deposit his or her duly executed form of proxy with the Company's transfer agent and registrar, TSX Trust Company, at Suite 301, 100 Adelaide Street West, Toronto, Ontario M5H 4H1 not later than 12:00 p.m. (Eastern time) on Tuesday, June 17, 2025, or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned meeting.

Shareholders who are unable to attend the Meeting in person, are requested to date, complete, sign and return the enclosed form of proxy so that as large a representation as possible may be had at the Meeting.

The board of directors of the Company has by resolution fixed the close of business on Friday, May 9, 2025, as the record date, being the date for the determination of the registered holders of common shares of the Company entitled to receive notice of, and to vote at, the Meeting and any adjournment thereof.

**NOTICE-AND-ACCESS**

Notice is also hereby given that the Company has decided to use the notice-and-access method of delivery of meeting materials for the Meeting for beneficial owners of common shares of the Company (the "**Non-Registered Holders**") and for registered shareholders. The notice-and-access method of delivery of meeting materials allows the Company to deliver the meeting materials over the internet in accordance with the notice-and-access rules adopted by the Ontario Securities Commission under National Instrument 54-101 - *Communication with Beneficial Owners of Securities of a Reporting Issuer*. Under the notice-and-access system, registered shareholders will receive a form of proxy and the Non-Registered Holders will receive a voting instruction form enabling them to vote at the Meeting. However, instead of a paper copy of the notice of Meeting, the management information circular, the annual consolidated financial statements of the Company for the financial year ended September 30, 2024, and related management's discussion and analysis and other meeting materials (collectively the "**Meeting Materials**"), shareholders receive a notification with information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce the cost of printing and mailing the Meeting Materials to shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. The Company will not be adopting stratification procedures in relation to the use of notice-and access provisions.

------

**Websites Where Meeting Materials Are Posted:**

Meeting Materials can be viewed online under the Company's profile at www.sedarplus.ca or on the website of TSX Trust Company, the Company's transfer agent and registrar, at <u>https://docs.tsxtrust.com/2473</u>. The Meeting Materials will remain posted on the TSX Trust Company's website at least until the date that is one year after the date the Meeting Materials were posted.

**How to Obtain Paper Copies of the Meeting Materials**

Shareholders may request paper copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year from the date the Meeting Materials are posted on the TSX Trust Company's website. In order to receive a paper copy of the Meeting Materials or if you have questions concerning notice-and-access, please contact the Company's transfer agent and registrar, TSX Trust Company, by calling toll free at 1-866- 600-5869 or by email at <u>Tsxtis@tmx.com</u>. Requests should be received by 4:00 p.m. (Eastern time) on Thursday, June 5, 2025, in order to receive the Meeting Materials in advance of the Meeting.

The accompanying management information circular provides additional detailed information relating to the matters to be dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of annual meeting. Additional information about the Company and its financial statements are also available on the Company's profile at <u>www.sedarplus.ca</u>.

**DATED** this 9<sup>th</sup> day of May, 2025.

**BY ORDER OF THE BOARD**

*"Antanas Guoga" (signed)*

*Chairman*

------

**EXHIBIT "A"**

**SPECIAL RESOLUTION OF THE SHAREHOLDERS**

**OF**

**SOL STRATEGIES INC. (the "Company")**

**<u>AMENDMENT TO ARTICLES OF AMENDMENT - CONSOLIDATION</u>**

**"BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:**

1. the articles of the Company be amended to consolidate each of the issued and outstanding common shares of the Company on the basis of up to ten (10) pre-consolidation common shares of the Company into one (1) post-consolidation common share of the Company (the "**Consolidation**"), and further authorizing the directors in their sole discretion when and if to effect the Consolidation, in each case without requirement for further approval, ratification or confirmation by shareholders, as more particularly described in the management information circular dated May 9, 2025, of the Company, provided that in the event the Consolidation would result in a shareholder of the Company holding a fraction of a common share, a shareholder shall not receive a whole common share of the Company for each such fraction;

2. notwithstanding that this resolution has been duly passed by the shareholders of the Company, the directors of the Company be, and they are hereby authorized and directed to revoke this resolution at any time prior to the issue of a certificate of amendment giving effect to the Consolidation and to determine not to proceed with the amendment of the articles of amalgamation of the Company without further approval of the shareholders of the Company; and

3. any director or officer of the Company be and he or she is hereby authorized and directed, for and on behalf of the Company, to execute and deliver all such documents and to do all such other acts or things as he or she may determine to be necessary or advisable to give effect to this resolution, including, without limitation, the execution and delivery of the articles of amendment in the prescribed form to the Director appointed under the *Business Corporations Act* (Ontario), the execution of any such document or the doing of any such other act or thing being conclusive evidence of such determination."

------

## Exhibit 99.119

------

**SOL Strategies Inc. Files Preliminary Base Shelf Prospectus USD $1,000,000,000**

Toronto, Ontario--(Newsfile Corp. - May 27, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, is pleased to announce that it has filed a preliminary short form base shelf prospectus (the "Preliminary Shelf Prospectus") with securities regulators in each of the provinces and territories of Canada. A copy of the Preliminary Shelf Prospectus may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Upon the filing and receipt of a final base shelf prospectus, the Company will be permitted to make offerings of common shares (including through "at-the-market" offerings), warrants, subscription receipts, units, debt securities, or any combination thereof for up to a maximum amount prescribed in the final base shelf prospectus and over the period which the base shelf prospectus is effective.

The Company has filed this Preliminary Shelf Prospectus to increase its financial flexibility going forward. SOL Strategies currently has no immediate plans to issue any securities under it at this time, and may never proceed with any such issuance. Should the Company decide to offer securities the specific terms, including the use of proceeds, will be set forth in a prospectus supplement to the final base shelf prospectus, which will be filed with the applicable Canadian securities regulators.

"The filing of a base shelf prospectus supports our growth strategy by providing us with the flexibility to access capital as future opportunities arise in the rapidly evolving Solana ecosystem," said Leah Wald, CEO of SOL Strategies. "This strategic move enhances our ability to act decisively when compelling investment opportunities present themselves."

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 these securities in any province, territory, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, territory, state or jurisdiction.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain ecosystem that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact: <br>John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>203.682.8284

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange (the "CSE") nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

------

Forward-looking information includes, but is not limited to the filing of a final base shelf prospectus and any future financings or filing of prospectus supplements; and the potential benefits of these actions. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-119x001.jpg)<br>

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/253534</u>

------

## Exhibit 99.120

------

**SOL Strategies Completes SOC 2 Type 1**

**Audit, Strengthening Institutional Trust in**

**Solana Staking**

Toronto, Ontario--(Newsfile Corp. - May 28, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced the successful completion of SOC 2 Type 1 and SOC 1 Type 1 audits for its Solana staking platform, alongside the official certification of SOL Strategies under ISO 27001.

The comprehensive audits, conducted by <u>Sensiba</u>, evaluated SOL Strategies' security controls, policies, procedures, and cybersecurity framework across its Solana staking operations. These certifications demonstrate the Company's commitment to institutional-grade security standards and support continued growth with regulated clients.

"These certifications represent a foundational milestone in our mission to become the institutional backbone of the Solana ecosystem," said Leah Wald, CEO of SOL Strategies. "By achieving SOC 2 Type 1 and SOC 1 Type 1, alongside our ISO 27001 certification, we've demonstrated that institutional clients can trust SOL Strategies with their Solana staking needs."

Max Kaplan, CTO of SOL Strategies, added: "Security and compliance are core to how we operate. These audits validate the robust security controls we've built into every aspect of our staking platform."

The completed audits include SOC 2 Type 1, which validates the design effectiveness of security controls across security, availability, processing integrity, confidentiality, and privacy; SOC 1 Type 1, focusing on internal controls over financial reporting; and ISO 27001, the international standard for information security management systems. While SOL Strategies previously held ISO 27001 certification through its acquisition of Orangefin Ventures, the Company has now achieved direct certification.

Alongside the audit announcements, SOL Strategies has launched a dedicated trust center at <u>https://trust.solstrategies.io</u>, providing institutional clients with streamlined access to compliance reports, certifications, and security policies.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact: <br>John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>203.682.8284

**Cautionary Note Regarding Forward-Looking Information:**

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

------

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the Company's mission to become the institutional backbone of the Solana ecosystem and expectations regarding continued growth with regulated clients. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-120x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/253558</u>

------

## Exhibit 99.121

------

**SOL Strategies Provides Update on SOL Purchases**

Toronto, Ontario--(Newsfile Corp. - May 29, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced additional strategic purchases of SOL as part of its ongoing growth initiatives.

**Strategic Asset Transactions**

SOL Strategies, Inc. acquired 26,478.37 SOL for US$4,700,000 on May 26, 2025, reflecting an average purchase price of USD $177.50 per SOL.

In addition, the Company sold its remaining Bitcoin holdings of 3.21051734 BTC at an average price of US$103,251.05, generating proceeds of US$331,489.29.

These transactions align with the Company's focused strategy of concentrating its digital asset holdings in SOL to support its validator operations and long-term investment approach in the Solana ecosystem.

**Upcoming Financial Results**

As previously announced, SOL Strategies will release its financial results for the second quarter ending March 31, 2025 on Friday, May 30, 2025, followed by a webcast and conference call on Monday, June 2, 2025 at 4:30 PM EST. Investors and stakeholders are encouraged to participate in the call to learn more about the Company's recent milestones and growth outlook.

Conference Call Details:

* Date: Monday, June 2, 2025, at 4:30 PM EST

* Live Call: (800) 245-3047 (U.S.) or (203) 518-9765 (International)

* Conference ID: SOLQ225

* Webcast Link: <br><u>https://event.on24.com/wcc/r/4950255/BFBCE094E7089059DF9190FE5FD69DC4</u>

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain ecosystem that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact: <br>John Ragozzino, CFA <br><u>solstrategies@icrinc.com</u> <br>203.682.8284

**Media Contact:**

<u>solstrategies@scrib3.co<br></u>

<br> **Cautionary Note Regarding Forward-Looking Information:**

------

Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved".

Forward-looking statements in this news release include statements regarding the Company's strategic asset rebalancing, focused SOL strategy, validator operations and long-term investment approach, and upcoming financial results and earnings call. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-121x001.jpg)

To view the source version of this press release, please visit <br><u>https://www.newsfilecorp.com/release/253734</u>

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## Exhibit 99.122

------

![](exhibit99-122x001.jpg)

**(Formerly Cypherpunk Holdings Inc.)**

**INTERIM UNAUDITED CONDENSED FINANCIAL**

**STATEMENTS**

**FOR THE THREE AND SIX MONTHS ENDED**

**MARCH 31, 2025 AND 2024**

**(Expressed in Canadian Dollars)**

------

**MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING**

The accompanying interim unaudited condensed consolidated financial statements of Sol Strategies Inc. (formerly Cypherpunk Holdings Inc.) for the three and six months ended March 31, 2025 (the "Interim Statements) were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the note 2 of these Interim Statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at March 31, 2025.

**CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES**

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officers, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at March 31, 2025.

**NOTICE TO READER**

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying Interim Statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these Interim Statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of financial statements by an entity's auditor.

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **March 31,**<br>**2025** | **September 30,**<br>**2024** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 3) | $**1692837** | $1808052 |
| Prepaid expenses and accounts receivable | **215832** | 6750 |
|  | **1908669** | 1814802 |
| Cryptocurrencies (note 5) | **48319272** | 25575512 |
| Intangible assets (note 6) | **73980318** |  |
| Fixed assets (note 7) | **17635** |  |
| Investments (note 8) | **685662** | 1513331 |
|  | $**124911556** | $28903645 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (notes 9 and 19) | $**867427** | $232929 |
| Income taxes payable (note 22) | **1547686** | 1547686 |
| Financial liability - future share issuance (note 10) | **2352215** |  |
| Credit facility (note 11) | **16180172** | - |
|  | **20947500** | 1780615 |
| Long-term liabilities |  |  |
| Financial liability - future share issuance (note 10) | **4369863** |  |
| Convertible debenture (note 12) | **14515168** |  |
| Deferred tax liability (note 22) | **399406** | 399406 |
|  | **40231937** | 2180021 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 13) | **35990304** | 17256668 |
| Reserves (notes 12, 14, 15 and 16) | **81232691** | 17297454 |
| Accumulated other comprehensive (loss) income | **(20573788)** | 2540513 |
| Accumulated deficit | **(11969587)** | (10371011) |
|  | **84679620** | 26723624 |
|  | $**124911556** | $28903645 |
| Nature of operations and going concern (note 1) |  |  |
| Subsequent events (note 24) |  |  |
| SIGNED ON BEHALF OF THE BOARD |  |  |

---

*(Signed) "Ungad Chadda"* *(Signed) " Rubsun Ho"* <br> Director Director

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2025** | 2024 | **2025** | 2024 |
| **Income (loss)** |  |  |  |  |
| Realized gain on dispositions of cryptocurrencies (note 5) | $**(3285)** | $- | $**4427083** | $- |
| Staking and validating income (note 17) | **2527464** |  | **3772313** |  |
| Other income | **6069** | 90644 | **18059** | 101095 |
| Dividend income | **6331** | 88606 | **6331** | 91219 |
| Realized gain (loss) on investments (note 8) | **-** | (630352) | **(442)** | (359691) |
| Unrealized gain (loss) on investments (note 8) | **-** | 384152 |  | 3033163 |
|  | **2536579** | (66950) | **8223344** | 2865786 |
| **Expenses** |  |  |  |  |
| Share based compensation (notes 14 and 18) | **3220195** | 24693 | **3848991** | 62769 |
| Amortization (note 6) | **2541834** | 7909 | **2591916** | 15818 |
| Professional fees (note 18) | **974108** | 41401 | **1247171** | 85867 |
| Interest expense | **669265** |  | **702128** |  |
| Consulting fees (note 18) | **397773** | 88827 | **640481** | 195187 |
| Investor relations | **187629** |  | **341979** |  |
| General and administrative | **206051** | 36127 | **257594** | 75534 |
| Accretion (note 10) | **115517** |  | **115517** |  |
| Listing fees | **41952** |  | **98398** |  |
| Director fees (note 18) | **14332** | 9702 | **26000** | 20000 |
| Foreign exchange (gain) loss | **155229** | (34365) | **(48254)** | 9852 |
|  | **8523884** | 174294 | **9821920** | 465027 |
| **(Loss) income before taxes** | **(5987305)** | (241244) | **(1598576)** | 2400759 |
| Provision for income tax (note 22) | **(1163013)** |  | **-** |  |
| Income tax expense | **(1163013)** |  | **-** |  |
| **Net (loss) income for the period** | **(4824292)** | (241244) | **(1598576)** | 2400759 |
| **Other comprehensive income** |  |  |  |  |
| Unrealized (loss) gain on cryptocurrencies (note 5) | **(27715115)** | 7979523 | **(23114301)** | 12263774 |
| **Total comprehensive (loss) income** | $**(32539408)** | $7738279 | $**(24712877)** | $14664533 |
| **Net income (loss) per share (note 13(c))** |  |  |  |  |
| &nbsp;&nbsp;Basic | $**(0.03)** | $(0.00) | $**(0.01)** | $0.02 |
| &nbsp;&nbsp;Diluted | $**(0.03)** | $(0.00) | $**(0.01)** | $0.02 |
| **Weighted average number of shares outstanding (note 13(c))** |  |  |  |  |
| &nbsp;&nbsp;Basic | **151138107** | 151866655 | **150353419** | 151967467 |
| &nbsp;&nbsp;Diluted | **160195173** | **154305155** | **159410485** | **154405967** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**

**INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Balance, September 30, 2023** | <br>**Common**<br>**Shares**<br>**152067183** | <br>**Capital**<br>**Stock**<br>$**17864782** | <br>**Reserves**<br>$**17669046** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income**<br>$**(196846)** | <br>**Retained**<br>**Deficit**<br>$**(18509213)** | <br>**Total**<br>$**16827769** |
| Stock-based compensation |  |  | 62769 |  |  | 62769 |
| Purchase of shares for cancellation (note 13) | (3041343) | (385886) |  |  |  | (385886) |
| Net income for the period |  |  |  |  | 2400759 | 2400759 |
| Items that may be reclassified to profit or loss |  |  |  | 12263774 |  | 12263774 |
| Items reclassified to retained earnings | - | - | - | (2240497) | 2240497 | - |
| **Balance, March 31, 2024** | **149025840** | **17478896** | **17731815** | **9826431** | **(13867957)** | **31169185** |
| Share based compensation (note 14) |  |  | 1258150 |  |  | 1258150 |
| Options exercised (note 14) | 1709625 | 170963 |  |  |  | 170963 |
| Fair value of options exercised (note 14) |  | 159847 | (159847) |  |  |  |
| Options cancelled and expired (note 14) |  |  | (1532664) |  | 1532664 |  |
| Purchase of shares for cancellation (note 13) | (4562000) | (553038) |  |  |  | (553038) |
| Dissolution of subsidiary (note 19) |  |  |  |  | (2126) | (2126) |
| Net income for the period |  |  |  |  | 4206905 | 4206905 |
| Items that may be reclassified to profit or loss | - | - | - | (7285918) | (2240497) | (9526415) |
| **Balance, September 30, 2024** | **146173465** | **17256668** | **17297454** | **2540513** | **(10371011)** | **26723624** |
| Share based compensation (note 14) |  |  | 3848991 |  |  | 3848991 |
| Options exercised (note 14) | 5914780 | 699271 |  |  |  | 699271 |
| Fair value of options exercised (note 14) |  | 562216 | (562216) |  |  |  |
| Warrants issued for acquisitions (note 6) |  |  | 7428729 |  |  | 7428729 |
| Shares issued for acquisitions (note 6) | 6665621 | 17472149 |  |  |  | 17472149 |
| Shares to be issued for acquisitions (notes 6 and 14) |  |  | 37310400 |  |  | 37310400 |
| Convertible debenture, equity component (note 12) |  |  | 15909333 |  |  | 15909333 |
| Net loss for the period |  |  |  |  | (1598576) | (1598576) |
| Items that may be reclassified to profit or loss | - | - | - | (23114301) | - | (23114301) |
| **Balance, March 31, 2025** | **158753866** | $**35990304** | $**81232691** | $**(20573788)** | $**(11969587)** | $**84679620** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.) <br>INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS <br>(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Six months ending March 31,** | **2025** | **2024** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| (Loss) income for the period | $**(1598576)** | $2400759 |
| **Adjustments for:** |  |  |
| Realized (gain) loss on cryptocurrencies | **(4427083)** |  |
| Staking and validating income | **(3772313)** |  |
| Realized (gain) loss on investments | **442** | 359691 |
| Unrealized (gain) loss on investments | **-** | (3033163) |
| Foreign exchange (gain) loss | **(48254)** | 9852 |
| Other non-cash (income) loss | **278868** | (154855) |
| Expenses paid with cryptocurrencies | **63778** |  |
| Stock-based compensation | **3848991** | 62769 |
| Other non-cash (income) | **(159375)** |  |
| Accretion | **115517** |  |
| Amortization | **2591916** | 15818 |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **(209082)** | 15014 |
| Accounts payable and accrued liabilities | **634498** | (53075) |
| **Cash used in operating activities** | **(2680673)** | (377190) |
| **Financing activities** |  |  |
| Exercise of options and warrants | **699271** |  |
| Loan payable | **16180172** |  |
| Proceeds from private placement of convertible debentures (net) | **29901551** |  |
| Cryptocurrencies used to acquire intangible assets | **2334385** |  |
| Fair value of future share consideration to acquire intangible assets | **6722078** |  |
| Share issued to acquire intangible assets | **17472149** |  |
| Deferred share issuance to acquire intangible assets | **37310400** |  |
| Warrants issued to acquire intangible assets | **7428729** |  |
| Purchase of shares for cancellation | **-** | (385886) |
| **Cash used in financing activities** | **118048735** | (385886) |
| **Investing activities** |  |  |
| Purchase of cryptocurrencies | **(48190746)** |  |
| Proceeds from sale of cryptocurrencies | **8469668** | 4197160 |
| Purchase of assets | **(18839)** |  |
| Intangible asset investments | **(76571030)** |  |
| Sale/redemption of investments | **827669** | 2234911 |
| **Cash provided by (used in) investing activities** | **(115483277)** | 6432071 |
| **Change in cash and cash equivalents** | **(115215)** | 5668995 |
| **Cash and cash equivalents, beginning of the year** | **1808052** | 1927280 |
| **Cash and cash equivalents, end of the year** | $**1692837** | $7596275 |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Sol Strategies Inc. (the "Company" or "Sol Strategies") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company is an actively managed crypto investment company. During the year ended September 30, 2024, the Company pivoted its strategy to focus on the Solana blockchain ecosystem, leveraging its high-performance infrastructure and scalability. This shift included holding Solana ("SOL") as a core balance sheet asset, operating state-of-the-art validators, and developing intuitive staking tools paired with robust compliance frameworks. The Company's mission is to operate secure validators that leverage Solana's high transaction speed, throughput, and ecosystem to deliver long-term value for both users and investors. The Company is committed to developing unique technologies that optimize staking efficiency and accessibility, further strengthening Solana's position as a leading blockchain for institutional and enterprise applications. Reflecting this strategic pivot, the Company rebranded from Cypherpunk Holdings Inc. to SOL Strategies Inc. on September 9, 2024.The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 19). Additionally, during the six months ended March 31, 2025, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

These unaudited interim condensed consolidated financial statements for the six months ended March 31, 2025(the "Interim Statements") have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other assets to supports its operations for the next twelve months from the date of the issuance of the Interim Statements.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Statement of Compliance**

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. These Interim Statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

The policies applied in these Interim Statements are based on IFRSs issued and outstanding as of May 30, 2025, the date the Board of Directors approved the Interim Statements. The same accounting policies and methods of computation are followed in these Interim Statements as compared with the most recent audited annual financial statements as at and for the year ended September 30, 2024. Any subsequent changes to IFRS that are given effect in the Company's annual financial statements for the year ending September 30, 2025 could result in restatement of these Interim Statements.

**Staking and Validation Income**

The Company operates validator nodes on the Solana blockchain and earns staking rewards in the form of Solana tokens ("SOL"). These rewards are derived both from commission income earned on third-party SOL delegated to the Company's validators and from SOL held and delegated by the Company to validators it operates and controls.

The Company performs validation services for SOL owned by third parties delegated to the Company's validators. The validation services contribute to the security and functionality of the Solana network. In exchange, the Company receives a commission based on a pre- agreed percentage of the staking rewards earned by those delegations. In accordance with IFRS 15 - Revenue from Contracts with Customers, only the Company's retained commission is recognized as revenue, as the Company acts as an agent in the arrangement and does not control the full reward. Revenue is recognized when the performance obligation is satisfied, typically at the end of each Solana epoch, and is measured at the fair value of the SOL received at that time.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

For SOL held and delegated by the Company to validator nodes it owns and operates, the Company is entitled to the full amount of staking rewards earned, as both the delegated SOL and the validator infrastructure are under its control. These rewards do not arise from contracts with customers and are therefore outside the scope of IFRS 15. Instead, rewards earned on self-delegated SOL are recognized as other income or gains from digital asset activities, measured at the fair value of the SOL received at the time the entitlement to the reward is established.

**Future Share Issuances**

In accordance with IAS 32 (*Financial Instruments: Presentation*) and IFRS 9 (*Financial Instruments*), future share issuance obligations are classified as equity if they meet the fixed-for-fixed criterion under IAS 32, when the number of shares to be issued is predetermined and the consideration is based on a fixed contractual obligation. If a future share issuance does not meet the fixed-for-fixed criterion, the future share issuance obligation is recognized as a financial liability at its fair value as of the acquisition date. The fair value of the liability is remeasured at each reporting date, with changes in fair value recognized in profit or loss.

**3. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at March 31, 2025 and September 30, 2024.

---

| | | |
|:---|:---|:---|
|  | **March 31,** | September 30, |
|  | **2025** | 2024 |
| Cash in banks | $**1692837** | $1808052 |
|  | $**1692837** | $1808052 |

---

**4. PREPAID EXPENSES AND ACCOUNTS RECEIVABLE**

---

| | | |
|:---|:---|:---|
|  | **March 31,** | September 30, |
|  | **2025** | 2024 |
| Prepaid expenses | $**211517** | $6750 |
| Accounts receivable | **4315** | - |
|  | $**215832** | $6750 |

---

**5. CRYPTOCURRENCIES**

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions. New digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Quantity** | **Cost (USD)<sup>(a)</sup>** | **Cost (CAD)<sup>(a)</sup>** | **Market Value** |
| Bitcoin | 3.21 | $99146 | $142728 | $381000 |
| Solana | 267321 | 48103180 | 67845517 | 47930191 |
| SUI | 2477 | 8386 | 12061 | 8081 |
| **Balance at March 31, 2025** |  | $**48210713** | $**68000307** | $**48319272** |
|  | **Quantity** | **Cost (USD)<sup>(a)</sup>** | **Cost (CAD)<sup>(a)</sup>** | **Market Value** |
| Bitcoin | 56.25 | $1684587 | $2183891 | $4816138 |
| Solana | 100763 | 14580870 | 19977930 | 20759374 |
| **Balance at September 30, 2024** |  | $**16265457** | $**22161821** | $**25575512** |

---

(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.

The activity of the Company's cryptocurrencies, excluding the Bitcoin posted as collateral at Wintermute Asia Pte. Ltd. and Zerocap Pty Ltd. (below), for the six months ended March 31, 2025and the year ended September 30, 2024 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2023** | $**7852418** |
| Cash purchases | 19690454 |
| Cash sales | (2984944) |
| Gain on sales | 2278025 |
| Staking income | 287476 |
| Investment income received in cryptocurrencies | 277273 |
| Cryptocurrencies posted as collateral | (7969119) |
| Crptocurrency collateral returned | 2407478 |
| Foreign exchange gain | 3113 |
| Change in fair value | 3733338 |
| **Balance at September 30, 2024** | $**25575512** |
| Cash purchases | 45426874 |
| Cash sales | (5705796) |
| Gain on sales | 951039 |
| Staking and validating income | 3953883 |
| Other income | 6331 |
| Intangible asset purchased with cyrpto currencies | (2334385) |
| Expenses paid in cryptocurrencies | (63778) |
| Cryptocurrencies posted as collateral | (1764087) |
| Cryptocurrency collateral returned | 2763872 |
| Foreign exchange gain (loss) | 139634 |
| Change in fair value | (20629827) |
| **Balance at March 31, 2025** | $**48319272** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The activity of the Company's cryptocurrencies posted as collateral for the six months ended March 31, 2025 and the year ended September 30, 2024, is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2023** | $**-** |
| Cryptocurrencies posted as collateral | 7969119 |
| Cryptocurrency collateral returned | (2407478) |
| Investment income received in cryptocurrencies | 95568 |
| Cash sales | (11027632) |
| Gain on sales | 5370423 |
| **Balance at September 30, 2024** | $**-** |
| Cryptocurrencies posted as collateral | 1757712 |
| Cryptocurrency collateral returned | (2763872) |
| Cash purchases | 2763872 |
| Cash sales | (2763872) |
| Gain on sales | 1006160 |
| **Balance at March 31, 2025** | $**-** |

---

**6. INTANGIBLE ASSETS**

---

| | |
|:---|:---|
|<br>**Cost** | **Validator**<br>**assets** |
| Balance at September 30, 2024 | $- |
| Additions | 76571030 |
| **Balance as of March 31, 2025** | **76571030** |
| **Acculated amortization** |  |
| Balance at September 30, 2024 |  |
| Amortization <sup>(1)</sup> | 2590712 |
| **Balance as of March 31, 2025** | **2590712** |
| **Net book value as of March 31, 2025** | $**73980318** |

---

(1) The intangible assets are amortized on a straight-line basis over five (5) years.

During the six months ended March 31, 2025, the Company acquired certain intangible assets operating as Cogent Crypto ("Cogent"), OrangeFin Ventures LLC ("OrangeFin") and Laine ("Stakewiz"), resulting in an increase in the amount of Solana being validated by the Company.

The Company acquired 78% interest in Cogent's Solana blockchain validator assets, and a 100% interest in Cogent's SUI blockchain, Monad blockchain and Arch blockchain validator assets (collectively, the "Cogent Assets"), including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of the Cogent Assets. The intangible assets acquired included blockchain validator accounts, public and private keys, software, domain names, social media accounts and rights to operating agreements.

The Company acquired 100% of OrangeFin's Solana blockchain and Arch blockchain validator assets (collectively, the "OrangeFin

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

Assets"), including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of the OrangeFin Assets. The intangible assets acquired included blockchain validator accounts, public and private keys, software, domain names, social media accounts and rights to operating agreements.

The Company acquired 100% of Stakewiz's Solana blockchain, SUI blockchain, Monad blockchain and Arch blockchain validator assets (collectively, the "Stakewiz Assets") including main networks and test networks, and all accounts, information, data, infrastructure and other components required for or associated with the access, management, operation and other use or exploitation of the Cogent Assets. The intangible assets acquired included blockchain validator accounts, public and private keys, software, domain names, social media accounts and rights to operating agreements.

The purchase price and net assets of the Cogent Asset acquisition are as follows:

---

| | |
|:---|:---|
|  | **As of November 24, 2024** |
| Purchase price |  |
| &nbsp;&nbsp;&nbsp;Cash consideration<sup>(1)</sup> | $1394340 |
| &nbsp;&nbsp;&nbsp;Value of 1,162,000 common shares issued at closing <sup>(2)</sup> | 1394400 |
| &nbsp;&nbsp;&nbsp;Value of 18,592,000 common shares issued subsequent to closing <sup>(3)</sup> | 22310400 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 139354 |
|  | $**25238494** |
| Net assets acquired |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 25238494 |
|  | $**25238494** |

---

(1) US$1,000,000 (CAD $1,394,340) paid in US dollar stable coins at closing.

(2) 1,162,000 common shares priced at $1.20 per share, issued at closing.

(3) 18,592,000 common shares issued payable as follows: 3,098,667 common shares on May 25, 2025, 3,098,667 common shares on November 25, 2025, 3,098,667 common shares on May 25, 2026, 3,098,667 common shares on November 25, 2026, 3,098,666 common shares on May 25, 2027, and 3,098,666 common shares on November 25, 2027.

The purchase price and net assets of the OrangeFin Asset acquisition are as follows:

---

| | |
|:---|:---|
|  | **As of December 31, 2024** |
| Purchase price |  |
| &nbsp;&nbsp;&nbsp;Cash consideration<sup>(1)</sup> | $1079479 |
| &nbsp;&nbsp;&nbsp;Value of 503,621 common shares priced at $2.14 per share, issued at closing<sup>(2)</sup> | 1077749 |
| &nbsp;&nbsp;&nbsp;Present value of future share consideration<sup>(3)</sup> | 6606560 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 95213 |
|  | $**8859001** |
| Net assets acquired |  |
| &nbsp;&nbsp;&nbsp;Intangible assets | 8859001 |
|  | $**8859001** |

---

(1) US$750,000 (CAD $1,079,479) paid in US dollar stable coins at closing.

(2) 503,621 common shares priced at $2.14 per share, issued at closing.

(3) Present value of US$5,000,000 common shares of the company, based on a 3% discount rate and the following payment dates; US$833,333 on June 30, 2025, US$833,333 on December 31, 2025, US$833,333 on June 30, 2026, US$833,333 on December 31, 2026, US$833,333 on June 30, 2027,and US$833,333 on December 31, 2027.The common shares issued will be valued at the trading price per common share on the date of issuance.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The purchase price and net assets of the Stakewiz Asset acquisition are as follows:

---

| | |
|:---|:---|
|  | **As of March 31, 2025** |
| Purchase price |  |
| &nbsp;&nbsp;&nbsp;Cash consideration <sup>(1)</sup> | $5000000 |
| &nbsp;&nbsp;&nbsp;Value of 5,000,000 common shares issued at closing <sup>(2)</sup> | 15000000 |
| &nbsp;&nbsp;&nbsp;Value of 4,500,000 warrants issued at closing <sup>(3)</sup> | 7428729 |
| &nbsp;&nbsp;&nbsp;Value of 5,000,000 common shares issued subsequent to closing <sup>(4)</sup> | 15000000 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 44806 |
|  | $**42473535** |
| Net assets acquired |  |
| &nbsp;&nbsp;&nbsp;Intangible assets | 42473535 |
|  | $**42473535** |

---

(1) $5,000,000 paid at closing.

(2) 5,000,000 common shares priced at $3.00 per share, issued at closing.

(3) 4,500,000 warrants issued at closing. Each is exercisable into one common share of the Company at an exercise price of $2.98 per Common Share, vesting monthly over a 36-month period, each Warrant is exercisable for a period of 3 years from vesting date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.35, dividend yield 0%, expected volatility based on historical volatility of 126.1%, a risk-free interest rate of 2.55%, and an expected life of 3 years. The fair value of the warrants was estimated at $7,428,729

(4) 5,000,000 common shares issued payable on the one-year anniversary of the closing.

See also notes 10 and 16.

**7. FIXED ASSETS**

The fixed asset continuity schedule for the six months ended March 31, 2025 is as follows:

---

| | |
|:---|:---|
|<br>**Cost** | **Compututer**<br>**Hardware** |
| **Balance September 30, 2024** | $- |
| Additions | 18839 |
| **Balance March 31, 2024** | **18839** |
| **Amortization** |  |
| Balance September 30, 2024 |  |
| Amortization for the period | 1204 |
| **Balance March 31, 2024** | **1204** |
| **Net book value** |  |
| Balance September 30, 2024 |  |
| **Balance March 31, 2024** | $**17635** |

---

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**8. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **March 31,** |  | **September 30,** |
|  | **Quantity** | **2025** | **Quantity** | **2024** |
| Chia Network Inc. (a) | **19860** | $**488781** | 19860 | $488781 |
| NGRAVE NV (b) | **138966** | **196881** | 138966 | 196881 |
| Animoca Brands Corporation Limited (c) | **-** | **-** | 909 | 442 |
| Lucy Labs Flagship Offshore Fund SPC (d) | **-** | **-** | 500 | 827227 |
|  |  | $**685662** |  | $**1513331** |

---

(a) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. As at September 30, 2024, the Company estimated Chia's fair market value per share to be $23.95 (US$17.74), the Company recognized an unrealized gain of $121,849 (2023 - unrealized loss of $2,558) to a value of $488,781 (2023 - $366,932) in the consolidated statements of comprehensive income. At March 31, 2025, the Company estimated Chia's fair market value to be $488,781 (2024 - 358,952) and recognized an unrealized gain of $nil in the Interim Statements (2024 - unrealized loss of $7,979).

(b) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE NV ("NGRAVE") was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. As at September 30, 2024, the Company estimated the fair value of NGRAVE to be C$196,881 (2023 - $80,976) as at September 30, 2024, the Company recognized an unrealized gain of $115,905 (2023 - unrealized loss $67,443) on its NGRAVE investment in the consolidated statements of comprehensive income. As at March 31, 2025, the Company estimated NGRAVE's fair market value to be $196,881 (2023 - 82,799) and recognized an unrealized gain of $nil in the Interim Statements (2024 - unrealized gain of $1,823).

(c) During the year ended September 30, 2023, the Company acquired 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a price of AUD $1.10 ($1.04 CAD) per share, totaling AUD $10,000,000 ($9,434,917 CAD). In the year ending September 30, 2024, the Company sold 9,090,000 of these shares at an average price of AUD $0.84 per share ($0.76 CAD), resulting in net proceeds of AUD $7,670,133 ($6,905,859 CAD). This sale generated a realized gain of $1,785,473 (2023 - $nil), after accounting for accumulated unrealized losses from previous fair value adjustments. As of September 30, 2024, the fair value of the remaining 909 shares was determined to be $442 (2023 - 9,090,909 shares valued at $5,120,897), with the Company recognizing an unrealized loss of $70 (2023 - $4,314,020 unrealized loss on 9,090,909 shares). At March 31, 2025, the Company estimated the value of its Animoca holding to be $nil and recognized a realized loss of $442 in the Interim Statements.

(d) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023. During the year ended September 30, 2024, the Company received an offer to sell its rights to the FTX bankruptcy claims from a third party for $827,227 (the "FTX Claims Offer"), and therefore the Company wrote the value of Lucy Labs up to $827,227, recognizing an unrealized gain of $827,227 during the year ended September 30, 2024 (2023 - $707,649).The FTX Claims Offer was consummated during the six month period ended March 31, 2025.

During the year ended September 30, 2024, the founders of Streetside Development, LLC ("Streetside") were charged by the United States Department of Justice, and Streetside's operations were shut down. As a result, the Company determined the fair value of its Streetside investment was $nil as at September 30, 2024 (2023 - $122,646) and the Company recognized a realized loss of $122,646 in the financial statements (2023 - unrealized loss of $3,870).

During the year ended September 30, 2024 the Company received 2.01 bitcoin of dividend income valued at $248,213 (2023 - 0.90 bitcoin of dividend income valued at $36,642) from zkSNACKS. Also, during the year, zkSNACKS management decided to cease operations at its conjoin coordination business. As a result, the Company determined the fair value of its zkSNACKS was $nil as at September 30, 2024 (2023 - $772,668) recognizing a realized loss of $772,668 (2023 - unrealized gain of $327,641).

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the three months ended December 30, 2023 Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain on investments of $270,661 in its Interim Statements (2022 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the year ended September 30, 2024.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The activity of investments for the six months ended March 31, 2025 and the year ended September 30, 2024 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2023** | $**6464119** |
| Proceeds from sales (net) | (7176590) |
| Realized gain on sale of investments | 1160891 |
| Net unrealized gain on investments | 1064911 |
| **Balance, September 30, 2024** | $**1513331** |
| Proceeds from sales (net) | (827227) |
| Realized gain on sale of investments | (442) |
| **Balance, March 31, 2025** | $685662 |

---

**9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | September 30, |
|  | **2025** | 2024 |
| Trade accounts payable | $**468940** | $83413 |
| Accrued liabilities | **398487** | 149516 |
|  | $**867427** | $232929 |

---

**10. FINANCIAL LIABILITY - FUTURE SHARE ISSUANCE**

During the six months ended March 31, 2025, the Company acquired the OrangeFin Assets for consideration of US$750,000 (CAD $1,079,479) in US dollar stable coins and 503,621 common shares priced at $2.14 per share, paid on closing. The Company is also required to issue US$5,000,000 (CAD$7,175,000) worth of common shares of the company payable in six equal tranches of US$833,333 (C$1,195,833), every six months over a period of three years from the closing date of the acquisition (the "Obligation"). The number of shares issued per tranche will be determined based on the closing market price of the Company's common shares at the time of issuance. The future share issuances may be subject to adjustment. In the event the Solana staked to the OrangeFin Assets on a share issuance date has decreased more than 5% from the amount delegated to the OrangeFin Assets on the closing date (632,302 Solana), the number of shares issued on the applicable share issuance date shall be reduced in proportion to the percentage decline in staked Solana that exceeds 5%.

The future share issuance obligation has been recognized as a financial liability at its fair value of $6,833,325 as of the acquisition date, based on a discount rate of 5%. As at March 31, 2025 the fair value of the financial liability was valued at $6,722,078 and accretion expense of $115,517 was recognized in the Interim Statements.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

---

| | | | |
|:---|:---|:---|:---|
| **Share Issuance** | **Amount** | **Amount** | **Present Value** |
| **Date** | **US$** | **CAD$** | **CAD$** |
| June 30, 2025 | 833333 | 1195833 | 1190627 |
| December 31, 2025 | 833333 | 1195833 | 1161588 |
| June 30, 2026 | 833333 | 1195833 | 1133256 |
| December 31, 2026 | 833333 | 1195833 | 1105616 |
| June 30, 2027 | 833334 | 1195834 | 1078650 |
| December 31, 2027 | 833334 | 1195834 | 1052341 |
| Total | 5000000 | 7175000 | 6722078 |
| Current portion |  |  | (2352215) |
| **Present value of Future Share Issuance** |  |  | **4369863** |

---

**11. CREDIT FACILITY**

During the six months ended March 31, 2025, the Company entered into a $10 million, subsequently increased to $25 million, unsecured, revolving demand credit facility (the "Credit Facility") with its Chairman, Mr. Antanas Guoga (the "Lender"). Under the terms of the Credit Facility, the Lender agreed to make available to the Company up to $10 million (the "Commitment Amount") in principal amount of unsecured, revolving credit, in such amounts as may be requested by the Company from time to time prior to October 21, 2026 (the "Maturity Date"). The drawn and unpaid portion of the Commitment Amount (the "Principal Balance") will bear interest at a rate of 5% per annum, accrued daily. The Principal Balance and accrued and unpaid interest will be payable on the Maturity Date, subject to the Lender's right to demand repayment of amounts outstanding under the Credit Facility at any time.

The continuity of the credit facility from September 30, 2024, to March 31, 2025, is as follows:

---

| | |
|:---|:---|
| Balance at September 30, 2024 | $- |
| Advances to Company | 16180172 |
| **Balance as of March 31, 2025** | $**16180172** |

---

As of March 31, 2025, interest expense of $128,423 had been recorded in accrued liabilities (2024 - $nil).

**12. CONVERTIBLE DEBENTURE**

On January 16, 2025, the Company closed a private placement financing of $27.5 million (the "First Private Placement") of convertible debenture units (each a "First CD Unit"). Each First CD Unit consists of one debenture ("First Debenture") with a principal amount of $1,000, and 400 warrants (each a "First Warrant"). Interest on the First Debenture accrues at a rate of 2.5% per annum, payable semi- annually in cash or common shares of the Company, and the First Debentures are convertible at any time into common shares of the Company at $2.50 per common share. Each First Warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of $2.50 per common share, exercisable at any time on or before the five-year anniversary of the closing of the First Private Placement. At the option of the Company, the First Debentures are redeemable in cash after the three-year anniversary of the closing of the First Private Placement at 112% of the principal value, plus accrued and unpaid interest.

On January 24, 2025, the Company closed a private placement financing of $2.5 million (the "Second Private Placement") of convertible debenture units (each a "Second CD Unit"). Each Second CD Unit consists of one debenture ("Second Debenture") with a principal amount of $1,000, and 214 warrants (each a "Second Warrant"). Interest on the Second Debentures accrue at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company, and the Second Debentures are convertible at any time into common shares of the Company at $4.66 per common share. Each Second Warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of $4.66 per common share, exercisable at any time on or before the five-year anniversary of the closing of the Second Private Placement. At the option of the Company, the Second Debentures are redeemable in cash after the three-year anniversary of the closing of the Second Private Placement at 112% of the principal value, plus accrued and unpaid interest.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The present value of the liability component and the equity components of the First Private Placement and Second Private Placement were allocated as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **First** | **Second** |  |
|  | **Private** | **Private** |  |
|  | **Placement** | **Placement** | **Total** |
| Closing date | January 16, 2025 | January 21, 2025 |  |
| Principal | $27500000 | $2500000 | $30000000 |
| Interest rate | 2.5% | 2.5% |  |
| Interest payments | Semi-annual | Semi-annual |  |
| Market rate, unsecured debt<sup>(1)</sup> | 11.48% | 11.30% |  |
| Conversion price of debenture | $2.50 | $4.66 |  |
| Warrants | 11000000 | 535000 | 11535000 |
| Warrant price | $2.50 | $4.66 |  |
| Underlying price, common shares | $2.50 | $4.66 |  |
| Risk free rate<sup>(2)</sup> | 3.05% | 3.05% |  |
| Volatility | 99.09% | 99.01% |  |
| *Present value* |  |  |  |
| &nbsp;&nbsp;&nbsp;Liability component | 18299130 | 1676794 | 19975925 |
| &nbsp;&nbsp;&nbsp;Equity component, warrants<sup>(3)</sup> | 20681402 | 1872759 | 22554161 |
| Total | $38980533 | $3549553 | 42530086 |
| *Proportionate allocation at closing* |  |  |  |
| &nbsp;&nbsp;&nbsp;Liability component | 12909677 | 1180990 | 14090667 |
| &nbsp;&nbsp;&nbsp;Equity component, warrants | 14590323 | 1319010 | 15909333 |
| &nbsp;&nbsp;&nbsp;Equity component, conversion feature<sup>(4)</sup> | nil | nil | nil |
|  | $27500000 | $2500000 | $30000000 |

---

1) Source Federal Reserve Economic Data, ICE BofA CCC & Lower US High Yield Index Effective Yield.

2) Sources: Bank of Canada 5-year benchmark rate.

3) Valued using the Black-Scholes option pricing model.

4) Pursuant to IFRS Standard IAS-32, if the combined values of the liability component and the equity component, warrants, is greater than the principal of the debt, the value attributed to the equity component, conversion option, is nil and the values of the liability component and the equity component, warrants, are allocated proportionally.

During the six months ended March 31, 2025, interest expense of $391,662 and $32,839 was recognized on the First Private Placement and Second Private Placement, respectively, representing the accretion of the liability components of the convertible debentures under the effective interest method.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**13. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2023** | **152067183** | $**17864782** |
| Purchase of shares for cancellation | (7603343) | (938924) |
| Exercise of options (note 12) | 1709625 | 330810 |
| **Balance at September 30, 2024** | **146173465** | $**17256668** |
| Options exercised (note 12) | 5914780 | 1261487 |
| Shares issued for acquisitions (note 5) | 6665621 | 17472149 |
| **Balance at March 31, 2025** | **158753866** | $**35990304** |

---

Pursuant to the terms of a normal course issuer bid, during the year ended September 30, 2024, the Company purchased and cancelled 7,603,343 shares (2023 - 2,960,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) PER SHARE AMOUNTS**

Basic and diluted earnings per share have been calculated on the basis of weighted average number of common shares outstanding as outlined below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| **For the three months ended,** | **2025** | 2024 | **2025** | 2024 |
| Net income for the period | $(4824292) | $(241244) | $(1598576) | $2400759 |
| Weighted average number of shares outstanding | 151138107 | 151866655 | 150353419 | 151967467 |
| **Earnings per share, basic** | $**(0.03)** | $**(0.00)** | $**(0.01)** | $**0.02** |
| Weighted average number of shares outstanding | 151138107 | 151866655 | 150353419 | 151967467 |
| Share based compensation dilution | 9057066 | 2438500 | 9057066 | 2438500 |
| Weighted average number of shares outstanding, diluted | 160195173 | 154305155 | 159410485 | 154405967 |
| **Earnings per share, diluted** | $**(0.03)** | $**(0.00)** | $**(0.01)** | $**0.02** |

---

**14. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period, and the board of directors may specify a vesting period on a grant-by-grant basis. As at March 31, 2025, the maximum number of shares issuable pursuant to the Plan was 15,875,387, of which 10,307,066 options and 1,113,669 restricted share units had been granted, leaving 4,454,652 shares available to be granted.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**Options**

The following table presents the options outstanding as at March 31, 2025 and the assumptions used to determine fair value.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number** |  | **Expected** | **Risk free** |  | **Underlying** | **Fair value per** |
|  | **of options** | **Exercise** | **option life** | **interest** | **Expected** | **share** | **option on** |
| **Grant date** | **outstanding** | **price** | **(years)** | **rate** | **volatility** | **price** | **grant date** |
| November 21, 2022 | 378875 | $0.100 | 5.00 | 3.32% nil | 161.6% | $0.100 | $0.09 |
| July 3, 2024 | 1635500 | $0.115 | 5.00 | 3.57% nil | 96.0% | $0.115 | $0.09 |
| July 8, 2024 | 968191 | $0.115 | 5.00 | 3.46% nil | 96.0% | $0.115 | $0.09 |
| August 7, 2024 | 5700000 | $0.155 | 5.00 | 3.00% nil | 95.9% | $0.155 | $0.11 |
| September 11, 2024 | 20000 | $0.145 | 5.00 | 2.75% nil | 95.6% | $0.145 | $0.11 |
| October 28, 2024 | 279500 | $2.020 | 5.00 | 3.04% nil | 99.4% | $2.020 | $1.52 |
| November 27, 2024 | 75000 | $1.390 | 5.00 | 3.13% nil | 99.4% | $1.390 | $1.05 |
| January 30, 2025 | 400000 | $4.910 | 5.00 | 2.79% nil | 134.2% | $4.910 | $4.30 |
| February 28, 2025 | 300000 | $2.710 | 5.00 | 2.60% nil | 132.9% | $2.710 | $2.36 |
| March 17, 2025 | 500000 | $2.380 | 4.54 | 2.69% nil | 124.9% | $2.350 | $1.94 |
| March 17, 2025 | 50000 | $2.350 | 5.00 | 2.69% nil | 131.4% | $2.350 | $2.04 |
|  | **10307066** |  |  |  |  |  |  |

---

The Company's option activity for the six months ended March 31, 2025, and the year ended September 30, 2024, is as follows:

On March 17, 2025, the Company issued 50,000 options for future services to a consultant to buy common shares at an exercise price of $2.35 per common share and expiring on March 17, 2030. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.35, dividend yield 0%, expected volatility based on historical volatility of 131.4%, a risk-free interest rate of 2.69%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $101,916, of which $3,909 was charged to the Interim Statements.

On March 17, 2025, the Company issued 500,000 options for future services to a consultant to buy common shares at an exercise price of $2.38 per common share with an average expiration date of September 29, 2029. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.35, dividend yield 0%, expected volatility based on historical volatility of 124.9%, a risk-free interest rate of 2.69%, and an average expected life of 4.54 years. The estimated fair value of the options on the grant date was estimated at $971,331, of which $35,567 was charged to the Interim Statements.

On February 28, 2025, the Company issued 300,000 options for future services to a director (200,000) and consultant (100,000) to buy common shares at an exercise price of $2.71 per common share and expiring on February 25, 2030. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.71, dividend yield 0%, expected volatility based on historical volatility of 132.9%, a risk-free interest rate of 2.60%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $708,537, of which $59,045 was charged to the Interim Statements.

On January 30, 2025, the Company issued 400,000 options for future services to a director (200,000), employee (50,000) and consultant (150,000) to buy common shares at an exercise price of $4.91 per common share and expiring on January 30, 2030. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $4.91, dividend yield 0%, expected volatility based on historical volatility of 134.2%, a risk-free interest rate of 2.79%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $1,719,366, which was charged to the Interim Statements.

On November 27, 2024, the Company issued 75,000 options for future services to a consultant to buy common shares at an exercise price of $1.39 per common share and expiring on November 26, 2029. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $1.39, dividend yield 0%, expected volatility based on historical volatility of 99.4%, a risk-free interest rate of 3.13%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $78,589, which was charged to the Interim Statements.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

On October 29, 2024, the Company issued 279,500 options for future services to a director to buy common shares at an exercise price of $2.02 per common share and expiring on October 29, 2029. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $2.02, dividend yield 0%, expected volatility based on historical volatility of 99.4%, a risk-free interest rate of 3.04%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $425,292, which was charged to the Interim Statements.

On September 11, 2024, the Company issued 149,971 options for future services to a director and a consultant to buy common shares at an exercise price of $0.145 per common share and expiring on September, 2029. The director was granted 49,971 stock options that vested on the grant date. The consultant was granted 100,000 stock options that vested on December 11, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.145, dividend yield 0%, expected volatility based on historical volatility of 95.6%, a risk-free interest rate of 2.75%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $15,967 of which $7,543 was charged to the statement of income (loss) and comprehensive income (loss) during the year ended September 30, 2024, and $8,424 was charged to the Interim Statements.

On August 7, 2024, the Company issued 6,900,000 options for future services to a directors and officers to buy common shares at an exercise price of $0.155 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.155, dividend yield 0%, expected volatility based on historical volatility of 95.9%, a risk-free interest rate of 3.0%, and an expected life of 5 years. The fair value of the options was estimated at $788,387 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

On July 8, 2024, the Company issued 2,000,000 options for future services to an officer to buy common shares at an exercise price of $0.115 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk-free interest rate of 3.46%, and an expected life of 5 years. The fair value of the options was estimated at $170,432 which was charged to statement of income (loss) and comprehensive income (loss) on the grant date.

On July 3, 2024, the Company cancelled 6,900,000 options (the "Cancelled Options") that had previously been granted to directors and officers; 1,500,000 options granted on April 9, 2021 with an exercise price of $0.30 per share, 4,400,000 options granted on July 7, 2021 with an exercise price of $0.165 per share, and 1,000,000 options granted on October 7, 2021 with an exercise price of $0.20 per share. An estimated fair value of $1,273,040 had previously vested in full for the Cancelled Options and was credited to retained earnings upon cancellation (2023 - 4,000,000 options were cancelled, 2,000,000 options granted on July 7, 2021 with an exercise price of $0.165 and 2,000,000 options granted on November 11, 2021 with an exercise price of $0.24).

On July 3, 2024, the Company issued 3,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.115 per common share and expiring on July 3, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk-free interest rate of 3.57%, and an expected life of 5 years. The fair value of the options was estimated at $255,774 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

During the year ended September 30, 2024, 1,719,875 options that had previously vested expired unexercised; 250,000 options granted December 1, 2020 with an exercise price of $0.10, 1,400,000s option granted on July 7, 2021 with an exercise price of $0.165 and 279,500 options granted on November 21, 2022 with an exercise price of $0.10 (2023 - 900,000 granted on February 13, 2019 with an exercise price of $0.07) and $259,629 was credited to retained earnings for expired options (2023 - $nil).

As a result of the forgoing, during the year ended September 30, 2024, $1,320,919 was charged to the statement of income (loss) and comprehensive income (loss) for share-based compensation (2023 - $430,945) and $1,532,664 was credited to retained earnings for cancelled options (2023 - $nil).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

During the six months ended March 31, 2025, 1,604,500 options were granted (2024 - nil) and the charge to the statement of income and comprehensive income for share-based compensation was $3,732,500 (2024 - $62,769).

The continuity of outstanding stock options at March 31, 2025 and September 30, 2024, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** |  | Weighted |
|  |  | **average** |  | average |
|  | **March 31,** | **exercise** | September 30, | exercise |
|  | **2025** | **price** | 2024 | price |
| Beginning balance | **14617346** | $**0.13** | 13106500 | $0.18 |
| Granted | **1604500** | $**2.96** | 12049971 | $0.14 |
| Exercised | **(5914780)** | $**0.12** | (1709625) | $0.10 |
| Cancelled | **-** | **-** | (6900000) | $0.20 |
| Expired | **-** | **-** | (1929500) | $0.15 |
| **Ending balance - outstanding** | **10307066** | $**0.58** | 14617346 | $0.13 |

---

The detail of outstanding options as at March 31, 2025 and September 30, 2024 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31,** |  | **Exercise** | **September 30,** |  |
| **Expiry Date** | **2025** | **Exercisable** | **Price** | **2024** | **Exercisable** |
| July 7, 2026 | **-** | **-** | $**0.100** | 600000 | 600000 |
| November 21, 2027 | **378875** | **378875** | $**0.100** | 1967375 | 1967375 |
| July 3, 2029 | **1635500** | **1635500** | $**0.115** | 3000000 | 3000000 |
| July 8, 2029 | **968191** | **968191** | $**0.115** | 2000000 | 2000000 |
| August 7, 2029 | **5700000** | **5700000** | $**0.155** | 6900000 | 6900000 |
| September 11, 2029 | **20000** | **20000** | $**0.145** | 149971 | 149971 |
| September 29, 2029 | **500000** | **26982** | $**2.380** | **-** | **-** |
| October 28, 2029 | **279500** | **279500** | $**2.020** | **-** | **-** |
| November 27, 2029 | **75000** | **75000** | $**1.390** | **-** | **-** |
| January 30, 2030 | **400000** | **400000** | $**4.910** | **-** | **-** |
| February 28, 2030 | **300000** | **25000** | $**2.710** | **-** | **-** |
| March 17, 2030 | **50000** | **-** | $**2.350** | **-** | **-** |
| **Total** | **10307066** | **9509048** |  | **14617346** | **14617346** |

---

As at March 31, 2925, 10,307,066 options were exercisable at a weighted average price of $0.58 per share (September 30, 2024 - 14,637,346 at $0.13). The weighted average life of the outstanding options is 3.58 years (September 30, 2024 - 4.8 years).

**Restricted Share Units**

During the six months ended March 31, 2025, the Company granted 1,063,669 restricted share units ("RSUs") to a consultant and 50,000 RSUs to a director that are and are exchangeable into common shares of the Company on a one for one basis upon achieving the vesting conditions. The RSU's were valued at the market price of the Company's common shares on the grant date ($3,458,450). The value of the director RSUs ($199,500) were charged to income on the grant date. The consultant RSUs were recognized monthly on a straight- line basis over their six-month vesting period, commencing December 24, 2024 for 698,950 RSUs (valued at $698,950) and February 28, 2025 for 500,000 RSUs (valued at $2,560,000). During the six months ended March 31, 2025, the total charged to the statement of income and comprehensive income for share-based compensation was $1,518,800 (2024 - $nil).

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**15. WARRANTS**

The continuity of outstanding warrants for the six months ended March 31, 2025, and the year ended September 30, 2024, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** |  | Weighted |
|  |  | **average** |  | average |
|  | **March 31,** | **exercise** | September 30, | exercise |
|  | **2025** | **price** | 2024 | price |
| Beginning balance | **-** | **-** | 16764707 | $0.40 |
| Issued | **16035000** | $**2.71** |  |  |
| Expired | **-** | **-** | (16764707) | $0.40 |
| **Ending balance** | **16035000** | $**2.71** | - | $0.00 |

---

The detail of outstanding warrants as at March 31, 2025 and September 30, 2024 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,** | Exercise | September 30, |
| **Expiry Date** | **2025** | Price | 2024 |
| March 17, 2028 | 4500000 | $**2.98** | **-** |
| January 16, 2030 | 11000000 | $**2.50** | **-** |
| January 21, 2030 | 535000 | $**4.66** | **-** |
|  | 16035000 | $**2.71** | **-** |

---

As at March 31, 2025 there were 16,035,000 warrants outstanding with a weighted average exercise price of $2.71 (September 30, 2024 - nil exercisable at $nil) . See also note 12.

**16. FUTURE SHARE ISSUANCE**

*Cogent Asset Acquisition*

During the six months ended March 31, 2025, the Company acquired the Cogent Assets for consideration of US$1,000,000 (CAD $1,394,340) in US dollar stable coins and 1,162,000 common shares priced at $1.20 per share, paid in cash and issued in common shares at closing, respectively. The Company allocated $278,868 of the payments made at closing to goodwill. The Company is also required to issue 18,592,000 common shares as follows: 3,098,667 common shares on May 25, 2025, 3,098,667 common shares on November 25, 2025, 3,098,667 common shares on May 25, 2026, 3,098,667 common shares on November 25, 2026, 3,098,666 common shares on May 25, 2027, and 3,098,666 common shares on November 25, 2027 (the "Cogent Obligation").

The future share issuances may be subject to adjustment. In the event the Solana staked to the Cogent Assets on a share issuance date has decreased more than 5% from the amount delegated to the Cogent Assets on the closing date (690,895 Solana), the number of shares issued on the applicable share issuance date shall be reduced in proportion to the percentage decline in staked Solana that exceeds 5%.

*Stakewiz Asset Acquisition*

During the six months ended March 31, 2025, the Company acquired the Stakewiz Assets for consideration paid at closing of $5,000,000 cash, 5,000,000 common shares priced at $5.00 per share, and 4,500,000 common share purchase warrants (each, a "Warrant"). The Warrants vest monthly in substantially equal tranches over 36 months, and each Warrant entitles the seller to purchase one common share of the company at a price of $2.98 per share for a period of 36 months from its respective vesting date. The Company is also required to issue 5,000,000 common shares as follows on March 17, 2026 at a deemed price of $3.00 per share (the "Stakewiz Obligation").

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**17. STAKING AND VALIDATING INCOME**

During the year ended September 30, 2024, the Company initiated Solana staking and validating operations which were enhanced by the acquisitions of the Cogent Assets, OrangeFin and Laine assets during the six months ended March 31, 2025 (see note 5).

The staking and validating results for the three months ended March 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| **Three months ending** | **2025** | **2025** | **2024** | **2024** |
|  | *Expressed in* | *Expressed in* | *Expressed in* | *Expressed in* |
|  | *Solana* | *Canadian Dollars* | *Solana* | *Canadian Dollars* |
| Validator operations |  |  |  |  |
| &nbsp;&nbsp;Validator rewards, paid in Solana | 5884 | $1563816 |  | $- |
| &nbsp;&nbsp;Validator rewards, paid in other cryptocurrencies |  | 135928 |  |  |
| &nbsp;&nbsp;Validator income, paid in fiat |  | 4315 |  |  |
| &nbsp;&nbsp;Validator fees, paid in Solana | (126) | (51081) |  |  |
| &nbsp;&nbsp;Validator fees, paid in fiat |  | (63278) |  |  |
|  | 5758 | 1589700 |  |  |
| Staking rewards | 3812 | 937764 |  |  |
| **Total staking and validating income** | **9570** | $**2527464** | **-** | $**-** |

---

The staking and validating results for the six months ended March 31, 2025 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| **Six months ending** | **2025** | **2025** | **2024** | **2024** |
|  | *Expressed in* | *Expressed in* | *Expressed in* | *Expressed in* |
|  | *Solana* | *Canadian Dollars* | *Solana* | *Canadian Dollars* |
| Validator operations |  |  |  |  |
| Validator rewards, paid in Solana | 7892 | $2155800 |  | $- |
| Validator rewards, paid in other cryptocurrencies |  | 135928 |  |  |
| Validator income, paid in fiat |  | 4315 |  |  |
| Validator fees, paid in Solana | (290) | (63778) |  |  |
| Validator fees, paid in fiat |  | (122106) |  |  |
|  | 7602 | 2110157 |  |  |
| Staking rewards | 6409 | 1662156 |  |  |
| **Total staking and validating income** | **14011** | $**3772313** | **-** | $**-** |

---

**18. RELATED PARTY DISCLOSURES**

The Company's related parties include its key management personnel, and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the six months ended March 31, 2025, the Company paid $15,796, (2024 - $60,000) for consulting services provided by an officer of the Company. At March 31, 2025, there is $nil (2024 - $30,000) of accounts payable to this related party.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

During the six months ended March 31, 2025, the Company paid $46,312.00 (2024 - $36,000) for consulting services provided by a director and officer of the Company. At March 31, 2025, there is $nil (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $36,000 (2024 - $36,000) for consulting services provided by a director and officer of the Company. At March 31, 2025, there is $6,000 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $202,500 (2024 - $10,000) for consulting and director services provided by a director and officer of the Company. At March 31, 2025, there is $nil (2024 - $5,000) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $155,639 (2024 - $45,000) for consulting services provided by an officer of the Company. At March 31, 2025, there is $28,340 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $10,000 (2024 - $10,000) in directors fees to a director of the Company. At March 31, 2025, there is $nil (2024 - $1,384) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $10,000 (2024 - $nil) in directors fees to a director of the Company. At March 31, 2025, there is $nil (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $2,000 (2024 - $nil) in directors fees to a director of the Company. At March 31, 2025, there is $2,000 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, $91,097 (2024 - $5,981) was charged for legal services by a firm of which an officer of the Company is a partner. At March 31, 2025, there is $10,311 of accounts payable to this related party (2024 - $nil).

During the six months ended March 31, 2025, the Company's chairman provided a $25 million dollar credit facility to the Company, of which $16,180,172 had been advanced as at March 31, 2025 (see note 11).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

The compensation payable to current and former key management is shown below: <br>

---

| | | |
|:---|:---|:---|
| **Six months ended March 31,** | **2025** | **2024** |
| Consulting fees | $**456247** | $177000 |
| Director fees | **26000** | 20000 |
| Stock-based compensation | **1646417** | 62769 |
|  | $**2126441** | $259769 |

---

At March 31, 2025, included in accounts payable and accrued liabilities is $46,651 (2024 - $36,384) owed to related parties.

**19. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017, the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary, Khan Resources B.V. ("KRBV"), for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority re-issued a preliminary assessment, and the Company has filed a notice of objection to this assessment. On February 26, 2024, KRBV was dissolved by the Dutch Chamber of Commerce. The Company believes that the tax collection period of tax debts has expired, however, it is possible that the recovery period for any taxes that could be owed may have been extended. As a result, no provision has been made for this reassessment in these financial statements.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**20. FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short-term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - March 31, 2025** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $- | $685662 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 48319272 |  |
|  | $**-** | $**48319272** | $**685662** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 25575512 |  |
|  | $**-** | $**25575954** | $**1512889** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the six months ended March 31, 2025 and the year ended September 30, 2024.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Unobservable** |  |
| **Description** | **Fair Value** | **Fair Value** | **Inputs** | **Range of inputs** |
|  | March 31, | September 30, | March 31, | March 31, |
|  | 2025 | 2024 | 2025 | 2025 |
| Investments | $685662 | $1512889 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at March 31, 2025 and noted that a 20% decrease would result in a $137,132 decrease in fair value.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**21. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the six months ended March 31, 2025.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

------

**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency, and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at March 31, 2025, the Company holds $1,692,837 in cash and cash equivalents at high credit quality financial institutions (September 30, 2024 - $1,808,052). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company is exposed to interest rate risk on its outstanding debt; however, all borrowings as at March 31, 2025, bear fixed interest rates. As such, the Company is not exposed to fluctuations in market interest rates on its existing debt obligations.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies, mainly Solana; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at March 31, 2025, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $68,566 (September 30, 2024 - $151,289).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of March 31, 2025, is $1,176,813 (September 30, 2024 - $1,762,619). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $117,681 (September 30, 2024 - $176,262).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2025, the Company had cash and cash equivalents balance of $1,692,837 (September 30, 2024 - $1,808,052) to settle accounts payable and accrued liabilities of $865,427 (September 30, 2024 - $232,929). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

**Concentration Risk**

The Company is exposed to concentration risk as the majority of its assets are held in Solana and related validator operations. The value of these assets is highly dependent on the performance, stability, and adoption of the Solana network, as well as broader cryptocurrency market and economic conditions. Any adverse developments, including regulatory changes, security incidents, or network disruptions, could materially impact the Company's financial position. The Company continuously evaluates its exposure and risk management strategies to mitigate potential adverse effects.

**Regulatory Risk**

The regulatory environment for digital assets, including Solana, remains uncertain and continues to evolve. Changes in laws, regulations, or enforcement actions in key jurisdictions could impact the Company's ability to operate validator nodes, stake assets, or transact in Solana. Regulatory developments may also affect the liquidity, valuation, or classification of Solana under applicable financial reporting standards. The Company actively monitors regulatory changes and assesses potential impacts on its operations and financial position.

**Solana Governance Risk**

Solana's development and governance are significantly influenced by the Solana Foundation, which plays a key role in protocol upgrades, ecosystem growth, and validator coordination. While Solana operates as a decentralized blockchain, the Solana Foundation's decision- making authority could impact network stability, economic incentives, or technical direction in ways that may not align with the interests of all stakeholders. Any material changes initiated by the Solana Foundation, including governance proposals, tokenomics adjustments, or network upgrades, could affect the Company's validator operations and the value of its Solana and Solana-related assets. The Company continues to monitor governance developments and assess potential risks to its operations.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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**SOL STRATEGIES INC. (FORMERLY CYPHERPUNK HOLDINGS INC.)**<br>**NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS <br>(EXPRESSED IN CANADIAN DOLLARS)**<br>**Three and six months ended March 31, 2025 and 2024**

On March 6, 2025, Solana validators and stakeholders commenced voting on governance proposals SIMD-0228 and SIMD-0123. SIMD- 0228 proposed introducing a dynamic token emission model that would have adjusted Solana's inflation rate based on staking participation, potentially reducing annual inflation from 4.5% to as low as 0.87%. However, the proposal did not reach the required supermajority and was rejected. SIMD-0123, which proposed a mechanism allowing validator operators to share priority fees with their stakers, was approved. The Company is evaluating the implications of these outcomes and will adjust its validator operations as necessary to maintain efficiency and competitiveness.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency, and currency risks arises in the normal course of the Company's business.

**22. INCOME TAX**

The Company provides for income tax at a tax rate of 26.5% based on tax rates expected to apply at the time of realization. The continuity of income taxes payable is as follows:

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| | |
|:---|:---|
| | **Income tax**<br>**payable** |
| **Balance at September 30, 2024** | $**1547686** |
| Provision for income tax | - |
| **Balance as of March 31, 2025** | $**1547686** |

---

As at December 31, 2024, the Company had a provision for income taxes of $1,163,013, which was reversed to $nil as at March 31, 2025.

As at September 30, 2024, the Company recognized a deferred tax liability of $399,406 (2022 - $201,518) in respect recognition of tax expenses associated with unrealized gains on cryptocurrencies. The net deferred tax liabilities which originated during the year ended September 30, 2024, have also not been recognized in the Interim Statements.

**23. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**24. SUBSEQUENT EVENTS**

On April 23, 2025 the Company announced that it has entered into an agreement for the issuance of a convertible note (the "Notes") facility of up to USD $500 million (the "Facility") with ATW Partners (the "Investor"). Pursuant to the Facility, the Company will issue Notes in the aggregate principal amount of USD $20 million as its first tranche (the "Initial Closing"), with additional capacity of up to USD $480 million available in subsequent drawdowns, subject to certain conditions. On May 1, 2025, the Company closed on the first tranche of US$20 million.

On May 27, 2025 the Company announced that it had filed filed a preliminary short form base shelf prospectus (the "Preliminary Shelf Prospectus") with securities regulators in each of the provinces and territories of Canada to raise up to US$1,000,000,000. Upon the filing and receipt of a final base shelf prospectus, the Company will be permitted to make offerings of common shares (including through "at-the-market" offerings), warrants, subscription receipts, units, debt securities, or any combination thereof for up to a maximum amount prescribed in the final base shelf prospectus and over the period which the base shelf prospectus is effective.

*The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.*

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## Exhibit 99.123

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![](exhibit99-123x001.jpg)

**(Formerly Cypherpunk Holdings Inc.)**

**MANAGEMENT DISCUSSION AND ANALYSIS<br>**

<br> For the six months ended March 31, 2025 and 2024

As at May 30, 2025

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**DISCLAIMER**

The following Management's Discussion & Analysis ("MD&A") of the financial condition and results of the operations of SOL Strategies, Inc. formerly Cypherpunk Holdings, Inc. (the "Company" or "SOL Strategies") constitutes management's review of the factors that affected the Company's financial and operating performance for the three and six months ended March 31, 2025, and 2024. All information in this MD&A is given as of the three and six months ended March 31, 2025 and 2024, unless otherwise indicated. All dollar figures are stated in Canadian dollars, unless otherwise indicated.

This MD&A has been prepared in compliance with the requirements of Form 51-102F1, in accordance with National Instrument 51-102 - *Continuous Disclosure Obligations*. This MD&A should be read in conjunction with the interim unaudited condensed and consolidated financial statements for the three and six months ended March 31, 2025, and 2024, together with the notes thereto. In the opinion of management, all adjustments (which consist only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results for the three and six months ended March 31, 2025, are not necessarily indicative of the results that may be expected for any future period.

For the purposes of preparing this MD&A, management considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value in the common shares of SOL Strategies' ("Common Shares"); or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

The words "we", "our", "us", "Company" and "SOL Strategies" refer to SOL Strategies, Inc. together with its management and/or employees of the Company (as the context may require).

These documents, along with additional information about SOL Strategies, are available under the Company's profile at www.sedar.com.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward- looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "continues," "forecasts," "projects," "predicts," "intends," "anticipates" or "believes," or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may," "could," "would," "should," "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. These forward-looking statements may include, but are not limited to, statements relating to:

- Our expectations regarding our revenue, expenses, operations and future operational and financial performance;

- Our cash flows;

- Popularity, adoption and rate of adoption of cryptocurrencies;

- The rise of Solana's increasing market share in the asset tokenization market;

- Our future growth plans and acquisition strategies;

- Our ability to stay in compliance with laws and regulations or the interpretation or application thereof that currently apply or may become applicable to our business both in Canada, the United States (the "U.S.") and internationally;

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- Our expectations with respect to the application of laws and regulations and the interpretation or enforcement thereof and our ability to continue to carry on our business as presently conducted or proposed to be conducted;

- The reliability, stability, performance and scalability of our infrastructure and technology;

- Our ability to attract new customers and maintain existing customers;

- Our ability to attract and retain personnel;

- Our expectations with respect to advancement in our technologies;

- Our competitive position and our expectations regarding competition; and

- Regulatory developments and the regulatory environments in which we operate.

Forward-looking statements are based on certain assumptions and analysis made by us in light of our experience and perception of historical trends, current conditions and expected future developments and other factors we believe are appropriate. Forward-looking statements are also subject to risks and uncertainties which include:

- Decline in the cryptocurrency market or general economic conditions;

- Regulatory uncertainty and risk, including changes in laws or the interpretation or application or enforcement thereof and the obtaining of regulatory approvals;

- We are subject to an extensive and highly evolving and uncertain regulatory landscape and any adverse changes to, or our failure to comply with, any laws and regulations, or regulatory interpretation of such laws and regulations, could adversely affect our brand, reputation, business, operating results, and financial condition;

- In connection with such laws and regulations or regulatory interpretation thereof, a particular crypto asset's or product offering's status as a "security" in any relevant jurisdiction is subject to a high degree of uncertainty and if we are unable to properly characterize a crypto asset or product offering, we may be subject to regulatory scrutiny, investigations, fines, and other penalties, and our business, operating results, and financial condition may be adversely affected;

- Risks related to managing our growth;

- Our dependence on customer growth;

- The future development and growth of crypto is subject to a variety of factors that are difficult to predict and evaluate. If crypto does not grow as we expect, our business, operating results, and financial condition could be adversely affected;

- Regulatory risk, including changes in laws or the interpretation or application thereof and the obtaining of regulatory approvals;

- Technology and infrastructure risks;

- Cybersecurity risks;

- Fluctuations in quarterly operating results;

- Competition in our industry and markets;

- Our reliance on key personnel;

- Our reliance on third party service providers;

- Exchange rate fluctuations;

- Risks related to terrorism, geopolitical crisis, or widespread outbreak of an illness or other health issue; and

- Risks associated with acquisitions and the integration of the acquired businesses;

Inherent in forward-looking statements are risks, uncertainties and other factors beyond SOL Strategies' ability to predict or control. Readers are cautioned that the above does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. Moreover, we operate in a competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this document may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for crypto assets may not continue and readers should not put undue reliance on past performance and current trends. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

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**DESCRIPTION OF BUSINESS**

SOL Strategies, Inc. is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's Common Shares have traded on the Canadian Securities Exchange ("CSE") under the symbol "HODL."

On July 9, 2024, Leah Wald was appointed Chief Executive Officer of SOL Strategies, bringing a bold vision to transform the Company into a premier technology-driven enterprise. Under Ms. Wald's leadership, the Company pivoted its strategy to focus on the Solana blockchain ecosystem, leveraging its high-performance infrastructure and scalability. This shift included holding Solana ("SOL") as a core balance sheet asset, operating high-performance validators optimized for reliability and scalability, and developing intuitive staking tools paired with robust compliance frameworks. The Company's mission is to operate secure validators that leverage Solana's unmatched speed, throughput, and ecosystem to deliver long-term value for both users and investors. The Company is committed to developing unique technologies that optimize staking efficiency and accessibility, further strengthening Solana's position as a leading blockchain for institutional and enterprise applications. Reflecting this strategic pivot, the Company rebranded from Cypherpunk Holdings, Inc. to SOL Strategies, Inc. on September 9, 2024.

The quarter ending March 31, 2025, represents a watershed moment in the evolution of SOL Strategies Inc. ("SOL Strategies" or the "Company"). Building on our conviction that decentralized technologies will power the next generation of financial infrastructure, we executed across multiple fronts-validator expansion, strategic acquisitions, product development, capital markets innovation, and institutional alignment. The results are not only financial in nature; they signal a maturing business that is now firmly positioned at the intersection of blockchain innovation and institutional-grade infrastructure.

SOL Strategies remains focused on delivering long-term shareholder value by operating and scaling critical infrastructure for the Solana blockchain, advancing the technical foundations needed for tokenized assets, and innovating across the staking economy. As one of the largest validator operators and the first public company to pursue on-chain equity tokenization, the Company is building essential tools-including real-time on-chain reporting, advanced staking analytics, and a non-custodial staking platform-while also supporting core development and testnet operations. SOL Strategies is not merely adapting to change; it is engineering the financial infrastructure of tomorrow.

**FINANCIAL & OPERATIONAL EXECUTION:**

Since adopting our Solana-focused strategy in 2024, the Company has continued to execute on its mission to build best-in-class blockchain infrastructure. As of March 31, 2025:

● **Major Validator Expansion:** The strategic acquisition of Laine's validator operations in March 2025 resulted in a material increase in our staked assets under management. Solana delegated to our validator operations grew from 1.57 million in January 2025 to 3.39 million by quarter-end, positioning the Company among the largest validator operators within the Solana ecosystem.

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● **Strategic Financing Foundation:** The Company has secured over US$525 million in capital commitments to accelerate its Solana-focused strategy. This includes a landmark US$500 million convertible note facility with an affiliate of ATW Partners - the first digital asset financing structure dedicated exclusively to acquiring and staking SOL. The Company issued an initial US$20 million tranche in May 2025, with up to US$480 million available in follow-on drawdowns, subject to conditions. In addition, the Company completed a CAD$30 million private placement with ParaFi Capital and amended its unsecured revolving credit facility with Chairman Antanas Guoga, increasing it from CAD$10 million to CAD$25 million. Additionally, since the end of the last quarter, the Company filed a preliminary US$1 billion base shelf prospectus with the OSC. Together, all these instruments provide flexible, institutional-grade financing to support continued growth.

● **SOL Treasury Growth:** The Company's Solana (SOL) holdings increased from 139,631 SOL as of December 31,

2024, to 267,321 SOL as of March 31, 2025. As of the date of this report, total SOL holdings have further increased to 420,524 SOL ($92.9 million).

● **Full Bitcoin Divestment:** In alignment with our Solana-native thesis, the Company reduced its Bitcoin holdings from 215.37 BTC as of September 30, 2023, to 3.21 BTC as of March 31, 2025. As of the date of this report, the Company currently holds no Bitcoin, reflecting a strategic reallocation of capital into Solana-focused infrastructure and operations.

**KEY GROWTH PILLARS**

● **Robust Liquidity Position:** As of the reporting date, the Company maintains over $99.2 million in liquidity. This financial strength empowers the Company to acquire additional SOL for staking, further build out validator infrastructure, and continue investing in technological innovation. Our ability to deploy capital dynamically in response to market conditions ensures we remain agile and opportunistic across cycles. The Company's expected yield on staked SOL remains competitive, with published rates between 7-9% APY, according to publicly available data from Stakewiz.com.

● **Scalable, High-Margin Infrastructure:** The Company operates a scalable and efficient validator network with minimal incremental costs. This high-margin business model generates reliable recurring revenue and positions the Company as a critical infrastructure provider within Solana's expanding ecosystem.

● **Relentless Technology Innovation:** At the core of SOL Strategies' differentiation is our commitment to building intelligent, intuitive, and scalable staking tools. From real-time yield calculators to seamless wallet integrations, our proprietary suite of products-including the widely used Stakewiz.com platform and our non-custodial staking mobile app-enhance user experience and drive organic growth. We continue to invest in next- generation infrastructure that supports institutional and retail participation in the Solana ecosystem.

● **Institutional-Grade Security and Compliance:** Maintaining the highest standards in compliance and cybersecurity is central to our operating philosophy. The Company completed SOC 1 and SOC 2 Type I audits, alongside the already existing ISO 27001 certification, reflecting the firm's proactive approach to meeting institutional expectations. These frameworks are designed to ensure secure, transparent, and reliable operations-critical for gaining and maintaining trust among institutional stakeholders and regulatory bodies alike.

As the premier publicly traded company in North America solely dedicated to the Solana blockchain, SOL Strategies occupies a leadership position at the nexus of traditional capital markets and decentralized infrastructure. We are not merely offering exposure to the Solana ecosystem-we are operationalizing it. Through our expanding validator network, growing treasury, proprietary software platforms, and institutional partnerships, we deliver a differentiated and compliant pathway for investors to participate in the future of digital finance.

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The acceleration of institutional interest in digital assets, coupled with macro-level shifts toward programmable, tokenized finance, positions SOL Strategies as a critical enabler in this market transition. Our infrastructure supports the practical deployment of real-world asset tokenization, next-generation DeFi, and on-chain financial primitives that will power tomorrow's capital markets.

By combining disciplined execution, forward-looking capital allocation, and deep alignment with Solana's ecosystem growth, we are committed to becoming the premier platform for institutional-grade blockchain infrastructure. Our long-term goal remains unchanged: to create enduring value for our shareholders while helping architect the decentralized financial rails of the future.

**VALIDATOR OPERATIONS AND STAKING REVENUE**

SOL Strategies earns income through the operation of validator nodes and by staking its own SOL tokens alongside those delegated by third-party participants. These activities constitute the core of our infrastructure revenue model:

● **Validator Acquisition and Growth:** The Company has acquired and operates multiple high-performance validators. As of March 31, 2025, 3,390,304 SOL with a value of $607.8 million, were staked at the Company's

Validators, of which 265,295 SOL were the Company's. This represents an increase of 3,289,541 SOL (3,232%) of SOL delegated to its Validators since the end of Fiscal 2024. These Validators are optimized for scalability, high availability, and competitive yields, ensuring operational efficiency and strengthening SOL Strategies' role in supporting Solana's network growth.

● **Revenue Growth from Staking**: As at March 31, 2025, 265,295 SOL of the Company's 267,321 SOL holdings, were exclusively staked to its own high-performance Validators. This marks a significant increase from the 101,200 SOL staked as of September 30, 2024, reflecting a 162% increase in SOL staked by the Company. The SOL staked to the Company's validators during the three months ended March 31, 2025, generated staking income of 3,812 SOL, an annualized staking yield of approximately 7% on a SOL on SOL basis.

● **Validation Revenue:** During the six-month period ending March 31, 2025, the Company's Validators generated 7,602 SOL of income ($2.1 million). The Company's largest validator, Laine/Stakewiz, validating approximately 45% of the SOL delegated to the Company, is only reflected in the Company's financial results for 14 days since its acquisition on March 17, 2025.

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The following table presents the growth of the Company's staking and validating business since its inception in late June 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three months ending** | **Three months ending** | **Three months ending** | **Three months ending** | **As at** |
|  | **June 30,** | **September 30,** | **December 31,** | **March 31,** | **May 30,** |
|  | **2024** | **2024** | **2024** | **2025** | **2025** |
|  | *Expressed in Solana* | *Expressed in Solana* |  |  |  |
| Solana delegated to Company validators (end of period) |  | 101763 | 1569214 | 3390304 | 3442698 |
| Validator rewards (net) |  | (11) | 1844 | 5758 | n/a |
| Solana staked by the Company (end of period) | 32206 | 101200 | 137534 | 265295 | 387597 |
| Staking rewards | 4 | 1427 | 2597 | 3812 | n/a |
|  | *Expressed in Canadian Dollars* | *Expressed in Canadian Dollars* |  |  |  |
| Solana delegated to Company validators (EOP, $000's) |  | $20800 | $424000 | $607873 | $760464 |
| Validator income (net) |  | $(10830) | $520458 | $1589700 | n/a |
| Solana staked by the Company (EOP, (EOP, $000's) | $6457 | $20857 | $45823 | $47567 | $85617 |
| Staking rewards | $802 | $286750 | $724391 | $937764 | n/a |

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*Note: Canadian dollar amounts are based on Solana prices and the USD/CAD exchange rate in effect on the referenced date.*

Technical Performance Achievements:

SOL Strategies' validator business remains a high-margin revenue engine, underpinned by industry-leading performance and continuous optimization. During Q2 2025, our infrastructure continued to outperform key network benchmarks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 100% Uptime: Laine achieved 100% uptime over all of Q2, supporting network reliability and consistent rewards generation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 9.77% Max APY: Orangefin outperformed the network average (9.28%) through performance tuning and infrastructure enhancements, delivering superior returns to delegators and attracting deals such as our Neptune and DigitalX agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Mobile App Launch: We launched the first ever mobile app dedicated to Solana native staking on iOS, Android, and Solana Mobile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Firedancer Deployment: Early adoption of the Firedancer validator client on two nodes reinforces our infrastructure leadership and positions us to benefit from future throughput improvements.

These metrics reinforce the strength of validator operations as a recurring revenue stream and a strategic pillar of our Solana-native platform. As institutional interest in staking continues to grow, we are well-positioned to scale both our footprint and rewards-driven revenue model.

**PROPRIETARY TECHNOLOGY AND INFRASTRUCTURE INNOVATION**

SOL Strategies continues to invest in technology to deliver scalable, performant, and user-centric solutions across the staking and validator landscape:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Retail Staking App: Launched on Solana's dApp Store as well as the Apple App Store and Google Play, the

Orangefin mobile app is the first mobile app ever launched dedicated to native staking on Solana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Stakewiz.com Analytics Platform: Acquired through the Laine transaction, Stakewiz.com is a widely used data platform within the Solana staking community, providing real-time validator performance metrics, network analytics, and staking education tools.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Yield Optimizations: Leveraging its technical expertise within the Solana ecosystem, SOL Strategies operates a modified version of the Solana validator client on select nodes. This implementation enables enhanced yield performance for delegators, delivering superior returns compared to competing validators-even in cases where commission rates are identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Automation Platform: SOL Strategies has developed a proprietary automation platform that streamlines the management of its Solana validator fleet. This operational efficiency has supported strategic partnerships, including with Pudgy Penguins, and reinforces the Company's ability to scale securely and reliably. Further details are outlined in a Company-published technical blog post.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Dune Dashboard: Given that the majority of the Company's revenue is derived directly from on-chain activity, SOL Strategies developed a public-facing dashboard providing daily, unaudited insights into its blockchain-based revenue. This tool enhances transparency by offering stakeholders near real-time visibility into the key performance metrics that drive the Company's operational and financial outcomes.

These tools support our broader strategic goal: to operationalize and democratize participation in decentralized capital markets.

**INSTITUTIONAL PARTNERSHIPS**

Sol Strategies continues to deepen its presence within institutional channels through a series of landmark partnerships that reflect growing confidence in our performance and infrastructure. Since September 30, 2024 to current we have partnered with the following institutional partners:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● BitGo: Sol Strategies was selected as a preferred validator for BitGo's institutional staking platform, providing access to a growing network of high-quality delegators seeking reliable, secure Solana staking infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Tetra Trust: As Canada's first licensed digital asset trust company, Tetra Trust integrated Sol Strategies as an approved staking provider. This enables institutional clients of Tetra to delegate directly to our validators through a trusted custody solution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Neptune Digital Assets (TSXV: NDA): In February 2025, Sol Strategies entered into a strategic partnership with Neptune Digital, establishing a shared-revenue validator relationship that enhances yield while preserving the decentralization and integrity of the Solana network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● DigitalX (ASX: DCC): This integration, facilitated through BitGo, marked one of the largest institutional staking mandates in the Asia-Pacific region and underscored Sol Strategies' credibility in delivering consistent validator performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Pudgy Penguins: In a notable expansion of our white-label validator program, we were selected to operate a dedicated validator for Pudgy Penguins, a premier Web3 brand. This collaboration signals the growing crossover between NFT communities and staking infrastructure, and reflects the trust placed in Sol Strategies to support brand-aligned staking experiences.

Together, these partnerships signal a shift in our distribution model toward one that mirrors the institutional reach of traditional prime brokerage services-built on performance, transparency, and trust.

**CAPITAL MARKET EXPANSION AND STRATEGIC FINANCING**

SOL Strategies undertook multiple capital markets initiatives in Q2 as well as recently to enhance flexibility and position the Company for long-term value creation:

● Nasdaq U.S. Listing: SOL Strategies has initiated the process for a U.S. Nasdaq listing to enhance market visibility and expand access to institutional investors. Significant progress has been made toward meeting the necessary regulatory and listing requirements, reflecting our commitment to scaling the Company's presence in U.S. capital markets. The Company's NASDAQ application and the commencement of trading remains subject to approvals from both NASDAQ and the SEC.

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● Preliminary Base Shelf Prospectus: On May 26th, 2025, the Company filed a US$1 billion preliminary base shelf prospectus to provide a framework for opportunistic capital raises aligned with strategic needs.

● OTC Markets: OTC Markets Listing: The Company is currently listed on the OTCQB, which supports increased U.S. trading activity and enhances overall liquidity. On May 6th, the Company transitioned from the OTCQX to the OTCQB tier due to OTC Markets' classification of SOL as an intangible asset, which impacted our eligibility under the net tangible asset threshold. This change did not affect our business operations or strategy nor our continued U.S. market access.

● US$500 million convertible note facility from ATW Investment: On April 23, 2025, SOL Strategies announced a landmark convertible note facility of up to US$500 million with an affiliate of ATW Partners, representing the first digital asset financing structure exclusively dedicated to acquiring and staking Solana (SOL) tokens. Under the agreement, SOL Strategies will issue convertible notes in the aggregate principal amount of US$20 million as an initial tranche on or about May 1, 2025, with additional capacity of up to US$480 million available in follow- on drawdowns, subject to certain conditions. This financing structure is the first of its kind in the digital asset space, reinforcing our leadership in aligning blockchain infrastructure with institutional capital.

● $30 million convertible debenture private placement:

o On January 16, 2025, the Company announced the completion of its private placement financing of $27.5 million (the "Private Placement"), by ParaFi Capital.

o On January 24, 2025 the Company added an additional 2.5mm to the announced round on January 16, 2025 making the total round $30 million.

● $25 million Credit Facility: On January 6, 2025, the Company amended its credit facility agreement with Antanas Guoga, the Company's Chairman increasing the unsecured, revolving demand credit facility from $10 million to $25 million, to be used exclusively for the purchase of Solana tokens.

Enhanced Investor Relations and Market Liquidity

SOL Strategies achieved higher trading volumes on both the CSE and OTC markets, reflecting growing investor interest. The Company maintained active investor communication through multiple channels. Effective February 25, 2025 SOL Strategies engaged ICR, LLC ("ICR") to provide certain investor relations services to the Company, including preparations for earnings reports, messaging development and execution, analyst engagement, investor targeting, which may include the distribution of information relating to the Company through digital, email and influencer marketing, development of investor relations infrastructure and best practices, and the provision of market research and intelligence. Additionally, the Company engaged Proconsul Capital, Ltd. to strengthen investor communication and outreach.

**ACQUISITIONS AND STRATEGIC INVESTMENTS INFORMATION**

The following acquisitions and investments have taken place since September 30, 2024:

OrangeFin Validators Acquisition

On December 31, 2024, the Company acquired three Validators operating in the Solana, Solana Testnet, and Arch Testnet networks, and certain assets related to the Validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services for consideration of (i) 750,000 USDC on closing, (ii) the issuance of 503,621 Common Shares at a deemed value of $2.14 per share on closing, and (iii) US$5,000,000 in additional Common Shares (valued at the trading price per Common Share at the time of issuance), to be issued in six equal tranches every six months over a period of three years from closing. In addition to the acquisition of Validators, Max Kaplan, founder of Orangefin Ventures, has joined as the Company's new Head of Staking.

*ParaFi Private Placement*

On January 16, 2025, the Company announced the completion of its private placement financing of $27.5 million (the "Private Placement"), by ParaFi Capital (<u>https://parafi.com/</u>), a leading global blockchain investment firm. The proceeds from the Private Placement will be used to increase the Company's SOL treasury holdings, for organic and inorganic expansion of its revenue-generating validator operations, as well as general working capital purposes.

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The Private Placement consisted of unsecured convertible debenture units ("CD Units") for gross proceeds of $27.5 million. Each CD Unit consists of one debenture ("Debenture") with a principal amount of $1,000, and 400 common share purchase warrants (each, a "Warrant"). Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or Common Shares and the Debentures are convertible at any time into Common Shares of the Company at $2.50 per Common Share. Each Warrant entitles the holder thereof to purchase one (1) Common Share of the Company at an exercise price of $2.50 per Common Share, exercisable at any time on or before January 16, 2030. The Debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. Any Common Shares issued on the conversion of the Debentures, the interest thereon, or upon exercise of the Warrants are subject to restrictions on trading until the date that is four months and a day following the closing date of the Private Placement.

On January 24, 2025, the Company completed a second tranche private placement of $2.5 million with updated terms reflecting the Company's improved market position. The second tranche was based on a $4.66 conversion (updated from $2.50) and warrant exercise price. This brought the total gross proceeds received pursuant to private placement financing to $30 million.

*Laine Acquisition*

During the six months ended March 31, 2025, the Company acquired the Stakewiz Assets for consideration paid at closing of $5,000,000 cash, 5,000,000 common shares priced at $3.00 per share, and 4,500,000 common share purchase warrants (each, a "Warrant"). The Warrants vest monthly in substantially equal tranches over 36 months, and each Warrant entitles the seller to purchase one common share of the company at a price of $2.98 per share for a period of 36 months from its respective vesting date. The Company is also required to issue 5,000,000 common shares on March 17, 2026 at a deemed price of $3.00 per share (the "Stakewiz Obligation")

The Laine validator had 1.5 million SOL ($317 million) delegated to it as of March 6, 2025. This acquisition increased SOL Strategies' total staked SOL to 3,351,617 SOL across its validator operations, representing a 102% increase from February 2025. Michael Hubbard, founder of Laine, joined SOL Strategies as Chief Strategy Officer, bringing extensive expertise in validator operations, blockchain infrastructure, and decentralized network analytics.

*ATW Investment*

On April 23, 2025, SOL Strategies announced a landmark convertible note facility of up to USD$500 million with an affiliate of ATW Partners, representing the first digital asset financing structure exclusively dedicated to acquiring and staking Solana (SOL) tokens. SOL Strategies issued convertible notes in the aggregate principal amount of USD$20 million as an initial tranche on t May 1, 2025, with additional capacity of up to USD$480 million available in follow-on drawdowns, subject to certain conditions.

Proceeds will be used to purchase SOL tokens, which will be staked on validators operated by SOL Strategies, with staking yield shared with note holders. This structure is expected to strengthen the Company's validator business and generate immediate yield.

**LONG-TERM INCENTIVE PLANS**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire Common Shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of Common Shares subject to options granted under the Plan is limited to 10% in the aggregate of the number of issued and outstanding Common Shares of the Company at the date of the grant of the award. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the Company's board of directors which cannot exceed five years. The plan does not require any vesting period, and the Company's board of directors may specify a vesting period on a grant-by-grant basis.

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**FUNDING**

We believe our operating activities will continue to generate adequate cash flows to fund normal operations<u>.</u> However, we continually evaluate opportunities for us to maximize our growth and further enhance our strategic position, including, among other things, acquisitions, strategic alliances, and joint ventures potentially involving all types and combinations of equity, and acquisition alternatives. As a result, we may choose to raise additional funds to support those strategic initiatives.

**HIRING**

Recent additions to the SOL Strategies team include the following:

Max Kaplan, Head of Staking on December 31, 2024 and Chief Technology Officer on January 30, 2025. Mr. Kaplan is the founder of Orangefin Ventures, which was acquired by the Company on December 31, 2024. Prior to founding Orangefin Max was senior director of Engineering at Kraken.

Doug Harris, Chief Financial Officer. Mr Harris joined the Company as Chief Financial Officer on a full-time basis on January 1, 2025. Doug joined the Company as a part-time CFO in April 2021. Doug Harris is a Chartered Accountant (CPA, CA) and Chartered Business Valuator (CBV) with over 20 years of experience in finance. His expertise spans corporate finance, accounting, private equity, and M&A, with involvement in over $2 billion worth of transactions.

Andrew McDonald, Director of Operations. Mr. McDonald joined the Company on January 21, 2025. Andrew was previously the Chief Operating Officer of Bitaccess Inc. a Canadian SaaS company serving the Bitcoin ATM industry. Andrew helped to guide Bitaccess through an acquisition and oversaw its growth to be one of the world's largest Bitcoin ATM software providers.

Michael Hubbard, Chief Strategy Officer: Mr. Hubbard joined SOL Strategies as Chief Strategy Officer on March 17, 2025, through the Laine acquisition. Michael brings extensive expertise in validator operations, blockchain infrastructure, and decentralized network analytics as the founder of Laine and Stakewiz.com.

**LEADERSHIP TRANSITION**

On January 30, 2025, Mr. Mohammed Adham resigned as director and Chief Investment Officer of the Company due to personal circumstances. The Company's Chief Economist, Jon Matonis, assumed Mr. Adham's roles and responsibilities.

**BOARD APPOINTMENTS**

On January 30, 2025, Mr. Mohammed Adham resigned as director and Chief Investment officer of the Company due to personal circumstances.

On March 3, 2025, the Company appointed Mr. Luis Berruga, Founder and Managing Partner of LBS Capital, to its Board of Directors. With over 20 years of expertise and leadership in global ETF markets and traditional finance, Mr. Berruga's extensive experience in ETFs and asset management is expected to provide critical insights and business development opportunities as SOL Strategies continues its growth trajectory and advances the development of its institutional Solana Staking platform.

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**Solana Staking and Solana Validator Operations Risk Subsequent to September 30, 2024**

Subsequent to September 30, 2024, SOL Strategies has acquired three validators, and now operates five high-performance validators, four of which are on the Solana network. As a result of those acquisitions, the Company's validator and Solana staking businesses have developed significantly since the end of the fiscal year ended September 30, 2024, which businesses are subject to their own risk factors, including those described below.

**Risks related to validator operations**

The Company expects that subsequent to the year ended September 30, 2024, a significant portion of the revenue generated by the Company will come from the awards realized by managing the Validators and by staking its own assets to such Validators. There is a risk that fewer third-party Solana holders delegate their Solana to SOL Strategies' Validators, resulting in fewer awards and lower yields to the Company.

**Risks related to Staking Operations**

The Company operates five Solana Validators, three of which were acquired subsequent to the year ended September 30, 2024, and four of which operate in the Solana network, and as such the Company earns crypto token rewards for processing transactions and securing crypto networks. Additionally, the company operates two validators on the Sui network. The Company expects to, in large part, stake its crypto token rewards to its Validators. The Company's decision to stake an individual crypto token depends on a combination of network quality, network liquidity and expected staking compensation, the percentage of which varies from token to token. The compensation percentage is determined by a combination of a network's natural inflation rate, the transaction fees generated on the network, a token's price, and the percent of total tokens being staked. As such, the Company's compensation percentage may fall temporarily due to a short-term decline in transaction volume or an increase in the percent of crypto tokens being staked. The Company has no control over the compensation percentages of the various crypto tokens it chooses to stake, and the compensation percentage may fall below expected levels temporarily or permanently. The compensation percentage is expected to decrease as sector activity increases and more crypto tokens are invested in specific tokens. Staking revenues could decrease to a level that materially and adversely affects the Company's staking assets and staking strategies, the value of its staking assets and the value of any investment in the Company.

**Overall Performance**

The Company's financial performance during the six months ended March 31, 2025, was greatly affected by the decline in SOL prices during the period. Solana traded at US$145 per token at the beginning of the period, peaking at US$262 in the middle of January 2025, dropping to a low of $113 in mid-March, and then closing out the period at US$125. On a fiat basis, this resulted in an unrealized $23.1 million loss on the Company's SOL holdings and lower revenue from staking and validator operations in the period, although on a SOL basis staking rewards and validator income increased during the period (see table above). We note that SOL prices have rebounded since March 31, 2025, trading at about US$170 per token as of the date of this report.

Despite the challenges caused by volatility in SOL prices, the Company realized a positive EBITDA of $5.6 million for the six months ended March 31, 2025.

The financial highlights for the six months ended March 31, 2025, compared to the six months ended March 31, 2024, are as follows:

● Net loss of $1.6 million (2024 - $2.4 million) including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking and validating income of $3.8 million (2024 - $nil)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $4.4 million (2024 - $ nil)

● Adjusted EBITDA $5.6 million (2024 - $2.5 million), see Non-IFRS financial measures below

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● Total comprehensive loss of $24.7 million (2024 - total comprehensive income of $14.7 million)

● Cryptocurrency holdings of $48.3 million (2024 - $25.6 million) including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ 267,321 SOL with a market value of $47.9 million (September 30, 2024 - 100,763 Sol with a market value $20.8 million) and 3.17 bitcoin with a market value of $381,000 (September 30, 2024 - 56.25 bitcoin with a market value of $4.8 million)

● Cash position of $1.7 million (September 30, 2024 - $1.8 million)

● Intangible assets (SOL validators) of $74.0 million (September 30, 2024 - $nil)

● Total assets of $124.9 million (September 30, 2024 - $28.9 million)

● Shareholders' equity of $84.7 million (September 30, 2024 - $26.7 million)

**RESULTS OF OPERATIONS**

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| | | | |
|:---|:---|:---|:---|
| **Year ended September 30,** | **2024** | **2023** | **2022** |
| Total assets | $28903645 | $17054245 | $23892055 |
| Shareholders' equity | 26723624 | 16827769 | 23583763 |
| Income | 10671027 | (4498715) | 3131499 |
| Net income | 6607664 | (6282328) | 358456 |
| EPS | $0.04 | $(0.04) | $0.00 |
| Comprehensive income | 9345023 | (6479174) | (5612877) |

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*Comparison of `the years ended September 30, 2024, and 2023*

The total comprehensive income for the year ended September 30, 2024 ("Fiscal 2024") increased $15,824,197 to $9,345,023 compared to a total comprehensive loss of $6,479,174 for the year ended September 30, 2023 ("Fiscal 2023"). The main reasons for the variance are as follows:

• Total investment income of $10,671,027 (2023 - loss of $4,498,715), an increase of $15,168,742, mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on dispositions of cryptocurrencies of $7,648,448 compared to $nil in Fiscal 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Realized gain on investments of $1,160,891 (2023 - realized loss of $1,178,765), mainly due to a realized gain on Animoca Brands Corporation Limited ("Animoca") of $1,785,473 offset by a loss realized on zkSNACKS Limited of $772,668. In Fiscal 2023 the Company realized losses of $471,116 on Isla Capital Limited AB Digital Strategies Fund ("Isla") and $707,649 on Lucy Labs Flagship Offshore Fund Rising Tide Portfolio ("Lucy Labs").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Unrealized gain on investments $1,064,911, compared to an unrealized loss of $4,060,250 in Fiscal 2023, mainly due to a recovery of $827,227 on Lucy Labs and fair value increases of $121,849 and $115,905 on Chia Network Inc. and NGRAVE NV, respectively. In Fiscal 2023 the unrealized loss of $4,060,250 was mainly due to an unrealized loss on Animoca of $4,314,020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Dividend income of $322,362 (2023 - $44,068) mainly due to an increase in dividends from zkSNACKS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Staking and validating income of $271,245 (2023 - $nil).

• Operating expenses in Fiscal 2024 were $2,479,105 (2023 - $1,810,557), the increase of $668, 548 in operating losses was mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Stock-based compensation of $1,320,919 (2023 - $430,945), an increase of $889,974.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ General and administrative expenses $344,096 (2023 - $198,052), an increase of $146,044

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Foreign exchange gain of $50,725 (2023 - loss of $346,669), a decrease of $397,394

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax expense of $1,584,258 (2023 - recovery of $26,944), the increase mainly due to realized gains on the disposition of cryptocurrencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other Comprehensive Income was $2,737,359 (2023 - loss of $196,846), an increase of $2,934,205, mainly due to the unrealized gain on cryptocurrencies.

**Selected Quarterly Information**

The selected quarterly information below summarizes the financial information for the last eight quarters.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Mar-25** | **Dec-24** | **Sep-24** | **Jun-24** | **Mar-24** | **Dec-23** | **Sep-23** | **Jun-23** |
|  | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* | *$ millions, except per share amounts* |
| Income (loss) before taxes | (6.00) | 4.30 | 7.05 | (1.26) | (0.24) | 2.64 | (2.72) | (2.11) |
| Tax Recovery (expense) | 1.20 | (1.16) | (1.58) |  |  |  | 0.03 |  |
| Income (loss) for period | (4.80) | 3.20 | 5.46 | (1.26) | (0.24) | 2.64 | (2.69) | (2.11) |
| Net income (loss) per share (diluted) | $(0.03) | $0.02 | $0.04 | $(0.01) | $- | $0.02 | $(0.03) | $(0.01) |
| Total comprehensive income (loss) | (32.50) | 7.80 | (3.80) | (1.52) | 7.74 | 6.93 | (3.45) | (1.62) |
| Total assets | 124.90 | 74.60 | 28.90 | 28.35 | 31.34 | 23.96 | 17.05 | 20.47 |
| Net book value | 84.70 | 60.20 | 26.72 | 27.88 | 31.17 | 23.79 | 16.83 | 20.25 |

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*Comparison of the three months ended March 31, 2025 to the three months ended March 31, 2024*

The total comprehensive loss of $32.5 million compared to total comprehensive income of $7.7 million, mainly due to:

• Staking in validating income of $2.5 million (2024 - $nil)

• Operating expenses of $8.5 million (2024 - $174,294), mainly due to the following:

- Stock-based compensation to $3.2 million (2024 - $24,693)

- Amortization expense to $2.5 million (2024 - $15,818), due to the amortization of the purchase of approximately $76.3 million of intangible (validator) assets

- Professional fees to $1 million (2024 - $41,401), mainly due to higher legal expenses associated with the acquisition of intangible (validator) assets and the convertible debenture financings

- Interest expense to $0.7 million, due to interest on the credit facility and convertible debentures

- Investor relations to $187,629 (2024 - $nil) due to investor relations and marketing activities initiated in fiscal 2025

- Provision for a recovery of income tax of $1.2 million (2024 - $nil) due to a reversal of a provision for income tax expense in the three-month period ending December 31, 2024

- Unrealized loss on cryptocurrencies of $27.7 million (2024 - unrealized gain of $8.0 million), a $35.7 million decrease in income due to a significant drop in SOL prices during the second quarter of fiscal 2025.

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*Comparison of the six months ended March 31, 2025, to the six months ended March 31, 2024*

Total comprehensive loss of $24.7 million compared to total comprehensive income of $14.7 million, mainly due to:

• Staking in validating income of $3.8 million in the Period (2024 - $nil)

• Realized gain on the disposition of cryptocurrencies of $4.4 million (2024 - $nil)

• Operating expenses of $9.8 million (2024 - $0.5 million), an increase of $9.3 million, mainly due to the following:

- Stock-based compensation of $3.9 million (2024 - $62,769)

- Amortization expense of $2.6 million (2024 - $15,818), due to amortization of the purchase of approximately $76.3 million of intangible (validator) assets in fiscal 2025

- Professional fees to $1.3 million (2024 - $85,867), mainly due to higher legal expenses associated with the acquisition of intangible (validator) assets and the convertible debenture financings

- Interest expense to $0.7 million (2024 - $nil), due to interest on the credit facility and convertible debentures

- Investor relations to $0.3 million (2024 - $nil) due to investor relations and marketing activities initiated in fiscal 2025

- Unrealized loss on cryptocurrencies of $23.1 million (2024 - unrealized gain of $12.3 million), a $35.4 million decrease in income due to a significant drop in SOL prices during the second quarter of fiscal 2025.

*Comparison of the balance sheet as at March 31, 2025, to the balance sheet as at September 30, 2024*

Total assets of $124.9 million compared to $28.9 million, a $96 million increase, mainly due to:

- Cryptocurrencies of $48.3 million ($25.5 million at September 30, 2024), and

- Intangible assets of $74.0 million ($nil at September 30, 2024), due to the acquisition of the Cogent, OrangeFin and Laine/Stakewiz validator assets.

Total liabilities increased to $40.2 million (September 30, 2024 - $2.2 million) an increase of $38 million, mainly due to:

- Financial liabilities of $6.7 million (September 30, 2024 - $nil), representing the estimated present value of future common share issuances for the OrangeFin validator asset purchase

- Credit facility of $16.2 million (September 30, 2024 - $nil), and

- Debt component of the $30 million convertible debenture financing of $14.5 million (September 30, 2024 - $nil)

Net book value of $84.6 million (September 30, 2024 - $26.7 million) an increase of $57.9 million, mainly due to:

- Capital stock of $36.0 million (September 30, 2024 - $17.3 million) an increase of $$18.7 million, mainly due to $17.5 million of issuance related to validator asset acquisitions and $1.2 million pursuant to the exercise of stock options

- Reserves of $81.2 million (September 30, 2024 - $17.3 million) an increase of $63.9 million, mainly due to $3.9 million of stock based compensation, $7.4 million of warrants and $37.3 million of future common share issuances related to the Cogent, OrangeFin and Stakewiz validator assets, and $15.9 million related to the equity component of the $30 million convertible debenture financing

- Accumulated other comprehensive loss of $20.6 million (September 30, 2024 - accumulated other comprehensive income of $2.5 million) a decrease of $23.1 million due to the decrease in SOL prices during the period

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*Non-IFRS financial measures*

The Company collects and analyzes operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to net income, total comprehensive income and other results under IFRS, at this time the Company utilizes Adjusted EBITDA. We believe this non-IFRS financial measures provides useful information to investors and others in understanding and evaluating our financial condition, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, non-IFRS financial measurements are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. However, this non-IFRS measure is presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with IFRS and may be different from similarly titled non-IFRS measures used by other companies.

The following presents a reconciliation of net loss, the most directly comparable IFRS measure, to Adjusted EBITDA:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
| | **2025** | 2024 | **2025** | 2024 |
| *Adjusted EBITDA* |  |  |  |  |
| Loss (income) before taxes | $**(5987305)** | $(241244) | $**(1598576)** | $2400759 |
| Add back: |  |  |  |  |
| Foreign exchange (gain) loss | **155229** | (34365) | **(48254)** | 9852 |
| Accretion (note 10) | **115517** |  | **115517** |  |
| Amortization (note 6) | **2541834** | 7909 | **2591916** | 15818 |
| Non-cash nterest expense | **669233** |  | **702068** |  |
| Share based compensation (notes 14 and 18) | **3220195** | 24693 | **3848991** | 62769 |
| **Adjusted EBITDA** | $**714704** | $(243007) | $**5611663** | $2489198 |

---

**Financial and Capital Management**

**Outstanding Share Data**

---

| | |
|:---|:---|
| **At March 31, 2025** |  |
| Common shares outstanding: | 158753866.0 |
| Options to purchase common shares: | 10307066.0 |
| Restricted share units | 1113669.0 |
| Warrants: | 16035000.0 |
| **At May 30, 2025** |  |
| Common shares outstanding: | 166030526.0 |
| Options to purchase common shares: | 8026691.0 |
| Restricted share units | 1113669.0 |
| Warrants: | 16035000.0 |

---

**Cash Flow**

For the six months ended March 31, 2025, cash and cash equivalents decreased $0.1 million (2024 - increase of $5.7 million) to $1.7 million (2024 - $7.6 million) due to $2.6 million of net cash used in operating activities (2024 - $0.4 million), $118.1 million of net cash provided by financing activities (2024 - 0.4 million used in financing activities), and $115.5 million of net cash used in investing activities (2024 - $6.4 million provided by investing activities).

------

**Off-Balance Sheet Arrangements**

The Company has no off-balance sheet arrangements as of March 31, 2025, and as at the date of this MD&A.

**RELATED PARTY DISCLOSURES**

The Company's related parties include its key management personnel, and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the six months ended March 31, 2025, the Company paid $15,796, (2024 - $60,000) for consulting services provided by an officer of the Company. At March 31, 2025, there is $nil (2024 - $30,000) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $46,312.00 (2024 - $36,000) for consulting services provided by a director and officer of the Company. At March 31, 2025, there is $nil (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $36,000 (2024 - $36,000) for consulting services provided by a director and officer of the Company. At March 31, 2025, there is $6,000 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $202,500 (2024 - $10,000) for consulting and director services provided by a director and officer of the Company. At March 31, 2025, there is $nil (2024 - $5,000) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $155,639 (2024 - $45,000) for consulting services provided by an officer of the Company. At March 31, 2025, there is $28,340 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $10,000 (2024 - $10,000) in directors fees to a director of the Company. At March 31, 2025, there is $nil (2024 - $1,384) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $10,000 (2024 - $nil) in directors fees to a director of the Company. At March 31, 2025, there is $nil (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, the Company paid $2,000 (2024 - $nil) in directors fees to a director of the Company. At March 31, 2025, there is $2,000 (2024 - $nil) of accounts payable to this related party.

During the six months ended March 31, 2025, $91,097 (2024 - $5,981) was charged for legal services by a firm of which an officer of the Company is a partner. At March 31, 2025, there is $10,311 of accounts payable to this related party (2024 - $nil).

During the six months ended March 31, 2025, the Company's chairman provided a $25 million dollar credit facility to the Company, of which $16,180,172 had been advanced as at March 31, 2025 (see note 11 of the interim unaudited condensed financial statements for the six months ended March 31, 2025).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

------

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| **Six months ended March 31,** | **2025** | **2024** |
| Consulting fees | $**456247** | $177000 |
| Director fees | **26000** | 20000 |
| Stock-based compensation | **1646417** | 62769 |
|  | $**2126441** | $259769 |

---

At March 31, 2025, included in accounts payable and accrued liabilities is $46,651 (2024 - $36,384) owed to related parties.

**FAIR VALUE**

The fair value of the Company's cash and cash equivalents are not materially different from the carrying values given the short- term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - March 31, 2025** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $- | $685662 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 48359048 |  |
|  | $**-** | $**48359048** | $**685662** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 25575512 |  |
|  | $**-** | $**25575954** | $**1512889** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrencies, convertible loan, and assets held as collateral are classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

*(ii) Valuation techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market.

------

These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

*(iii) Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the six months ended March 31, 2025 and the year ended September 30, 2024.

*(iv) Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | March 31, | September 30, | March 31, | March 31, |
|  | 2025 | 2024 | 2025 | 2025 |
| Investments | $685662 | $1512889 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at March 31, 2025 and noted that a 20% decrease would result in a $137,132 decrease in fair value.

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**FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the six months ended March 31, 2025.

**Safeguarding of Cryptocurrency Assets**

The Company retains one third-party custodian (the "Custodian") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") to hold the Company's Bitcoin and Ethereum cryptocurrency assets. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Cypherpunk is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Cypherpunk will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Cypherpunk performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affect their ability to obtain an unqualified audit opinion on its audited financial statements. Zerocap is not related to the Company.

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**Risk Disclosures**

Exposure to credit, interest rate, cryptocurrency, and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When cryptoassets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at March 31, 2025, the Company holds $1,692,837 in cash and cash equivalents at high credit quality financial institutions (September 30, 2024 - $1,808,052). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk**

The Company is exposed to interest rate risk on its outstanding debt; however, all borrowings as at March 31, 2025, bear fixed interest rates. As such, the Company is not exposed to fluctuations in market interest rates on its existing debt obligations.

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies, mainly Solana; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

------

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at March 31, 2025, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $68,566 (September 30, 2024 - $151,289).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of March 31, 2025, is $1,176,813 (September 30, 2024 - $1,762,619). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $117,681 (September 30, 2024 - $176,262).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at March 31, 2025, the Company had cash and cash equivalents balance of $1,692,837 (September 30, 2024 - $1,808,052) to settle accounts payable and accrued liabilities of $865,427 (September 30, 2024 - $232,929). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

------

**Concentration Risk**

The Company is exposed to concentration risk as the majority of its assets are held in Solana and related validator operations. The value of these assets is highly dependent on the performance, stability, and adoption of the Solana network, as well as broader cryptocurrency market and economic conditions. Any adverse developments, including regulatory changes, security incidents, or network disruptions, could materially impact the Company's financial position. The Company continuously evaluates its exposure and risk management strategies to mitigate potential adverse effects.

**Regulatory Risk**

The regulatory environment for digital assets, including Solana, remains uncertain and continues to evolve. Changes in laws, regulations, or enforcement actions in key jurisdictions could impact the Company's ability to operate validator nodes, stake assets, or transact in Solana. Regulatory developments may also affect the liquidity, valuation, or classification of Solana under applicable financial reporting standards. The Company actively monitors regulatory changes and assesses potential impacts on its operations and financial position.

**Solana Governance Risk**

Solana's development and governance are significantly influenced by the Solana Foundation, which plays a key role in protocol upgrades, ecosystem growth, and validator coordination. While Solana operates as a decentralized blockchain, the Solana Foundation's decision-making authority could impact network stability, economic incentives, or technical direction in ways that may not align with the interests of all stakeholders. Any material changes initiated by the Solana Foundation, including governance proposals, tokenomics adjustments, or network upgrades, could affect the Company's validator operations and the value of its Solana and Solana-related assets. The Company continues to monitor governance developments and assess potential risks to its operations.

On March 6, 2025, Solana validators and stakeholders commenced voting on governance proposals SIMD-0228 and SIMD-0123. SIMD-0228 proposed introducing a dynamic token emission model that would have adjusted Solana's inflation rate based on staking participation, potentially reducing annual inflation from 4.5% to as low as 0.87%. However, the proposal did not reach the required supermajority and was rejected. SIMD-0123, which proposed a mechanism allowing validator operators to share priority fees with their stakers, was approved. The Company is evaluating the implications of these outcomes and will adjust its validator operations as necessary to maintain efficiency and competitiveness.

**Other Risk Factors**

Risks which the Company is not aware of or which the Company currently deems to be immaterial may surface and have a material adverse impact on the Company's business income and financial condition. Exposure to credit, interest rate, cryptocurrency, and currency risks arises in the normal course of the Company's business.

**OTHER INFORMATION**

This discussion and analysis of the financial position and results of operation as at March 3, 2025, should be read in conjunction with the Company's interim unaudited condensed financial statements for the six months ended March 31, 2025 and 2024, and Company's the consolidated financial statements for the year ended September 30, 2024 and 2023. Additional information can be accessed through the Company's public filings under the Company's SEDAR+ profile at www.sedarplus.ca.

**MANAGMENT'S RESPONSIBILITY FOR FINANCIAL INFORMATION**

The Company's consolidated financial statements are the responsibility of the Company's management and have been approved by the Board of Directors. The consolidated financial statements were prepared by the Company's management in accordance with IFRS. The consolidated financial statements include certain amounts based on the use of estimates and assumptions. Management has established these amounts in a reasonable manner, in order to ensure that the consolidated financial statements are presented fairly in all material respects.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures are designed to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to the Company's certifying officers. The Company's Chief Executive Officer and Chief Financial Officer believe that the Company's disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed under applicable securities regulations is recorded, processed, summarized, and reported within the times specified. Management regularly reviews the Company's disclosure controls and procedures; however, they cannot provide an absolute level of assurance because of the inherent limitations in cost effective control systems to prevent or detect all misstatements due to error or fraud.

------

Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS. The design of any system of controls and procedures is based, in part, upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

"Leah Wald"

Chief Executive Officer

May 30, 2025

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## Exhibit 99.124

------

**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Douglas Harris, Chief Financial Officer of Sol Strategies Inc**., certify the following:

**1.** ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of **Sol Strategies Inc.** (the "issuer") for the interim period ended **March 31, 2025.**

**2. *No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

**3.** ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: May 30, 2025.

*Signed "Douglas Harris"<br>_______________________________________*<br> Doug Harris<br>Chief Financial Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

------

## Exhibit 99.125

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**FORM 52-109FV2**

**CERTIFICATION OF INTERIM FILINGS**

**VENTURE ISSUER BASIC CERTIFICATE**

I, **Leah Wald, Chief Executive Officer of Sol Strategies Inc**., certify the following:

**1.** ***Review:*** I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Sol Strategies Inc. (the "issuer") for the interim period ended March 31, 2025.

**2. *No misrepresentations*:** Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

**3.** ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: May 30, 2025.

*Signed "Leah Wald"<br>_______________________________________*<br>Leah Wald<br>Chief Executive Officer

&nbsp;&nbsp;&nbsp; **<u>NOTE TO READER</u>**<br> In contrast to the certificate required for non-venture issuers under National Instrument 52-109 *Certification of Disclosure in Issuers' Annual and Interim Filings* (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of<br> &nbsp;&nbsp;&nbsp;&nbsp;i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and<br> ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.<br> The issuer's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.<br>

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## Exhibit 99.126

------

**SOL Strategies Reports Q2 Results and May Strategic Update**

Toronto, Ontario--(Newsfile Corp. - June 2, 2025) - SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) (formerly, Cypherpunk Holdings Inc, "Sol Strategies" or the "Company"), a publicly traded Canadian company providing infrastructure for the Solana blockchain ecosystem, today issued a comprehensive corporate update for the month of May and highlighted its second quarter 2025 financial results, which were filed on Friday, May 30, 2025.

The Company's Q2 financial statements and management discussion & analysis are available on SEDAR+ at <u>www.sedarplus.ca</u>.

**Financial Results Webcast and Conference Call:**

SOL Strategies will hold a webcast and conference call at 4:30 PM EST today to discuss these financial results. To register to participate in the conference call, please use the dial-in instructions or webcast link below. The webcast will also be available for replay via the investor relations section of the Company's website <u>https://solstrategies.io/investors/</u>.

**Event Details:**

**SOL Strategies Second Quarter 2025 Financial Results Webcast and Conference Call<br>Webcast Date**: Monday, June 2, 2025, at 4:30 PM EST

**Live Call**: (800) 245-3047 (U.S.) or (203) 518-9765 (International), Conference ID: SOLQ225

**Webcast**: <u>https://event.on24.com/wcc/r/4950255/BFBCE094E7089059DF9190FE5FD69DC4</u>

A replay of the webcast will be available on the company's investor relations website shortly after the event <u>https://solstrategies.io/investors/</u>.

**Financial Highlights for the Three and Six Months Ended March 31, 2025:**

On May 30, 2025, the Company released its second quarter financial results. Key financial and operational highlights include:

* Revenue for the six months ended March 31, 2025, of approximately $8.2 million, up 186% from $2.9 million in the same period in 2024

* Q2 revenue of approximately $2.5 million, compared to $(67,000) in Q2 2024

* Total SOL holdings as of March 31: 267,321 SOL (~CAD $48 million)

* SOL delegated to the Company's validator network grew from 1.57 million SOL in January 2025 to 3.39 million by March 31, 2025

* Total liquidity as of March 31, 2025, was approximately $50.0 million

Webcast replay will be available at: <u>solstrategies.io/investors</u>.

Chief Executive Officer Leah Wald stated: "Our second quarter results demonstrate continued execution across multiple strategic fronts as we build SOL Strategies into the institutional gateway to the Solana ecosystem. The deployment of the initial US$20 million tranche of our convertible debenture facility proceeds into SOL acquisitions, combined with our strategic staking partnerships and our growing validator network serving over 5,500 unique wallets, reinforces our position as a leader in blockchain infrastructure and capital markets innovation. Our exploration of tokenized equity solutions through our partnership with Superstate represents our commitment to pioneering new financial products that bridge traditional and decentralized finance."

**May 2025 Corporate Highlights**

SOL Strategies continued to execute on its strategic initiatives in May, with key developments including the filing of a preliminary base shelf prospectus and the announcement of an exploratory partnership with Superstate to explore tokenized equity solutions. The Company also secured new institutional partnerships, deployed capital from its convertible note facility, and maintained strong operational performance across its validator network.

------

**Capital Markets Activity**

On May 1, 2025, the Company closed the initial US$20 million tranche of its up to US$500 million convertible note facility with ATW Partners. The net proceeds were used to acquire 122,524 SOL at an average price of $148.96, deepening the Company's staked asset base.

On May 27, 2025, SOL Strategies filed a preliminary short form base shelf prospectus with Canadian securities regulators for potential future offerings of up to USD $1 billion. This filing enhances the Company's financial flexibility and supports its ability to capitalize on opportunities within the rapidly evolving Solana ecosystem. The prospectus is available on SEDAR+ at <u>www.sedarplus.ca</u>.

**Tokenized Equity Initiative**

On May 8, 2025, the Company signed a non-binding memorandum of understanding (MOU) with Superstate to explore the issuance of tokenized common shares tradable on the Solana blockchain via Superstate's "Opening Bell" platform. This initiative supports the Company's broader vision of enabling 24/7 global trading and creating blockchain-native capital markets.

**Strategic Staking Partnership with DigitalX**

On May 12, 2025, SOL Strategies <u>announced</u> a strategic staking partnership with DigitalX Limited (ASX: DCC), an Australian Stock Exchange-listed blockchain technology company. Under the partnership, DigitalX will stake its Solana holdings through BitGo's institutional custody platform, using SOL Strategies as a preferred validator partner.

This partnership builds on SOL Strategies' integration into BitGo's validator offering, positioning the Company among a select group of trusted institutional validators globally. The collaboration validates SOL Strategies' enterprise-grade infrastructure and expands its international institutional client base.

**Compliance and Security Certifications**

The Company successfully completed SOC 1 Type 1, SOC 2 Type 1, and ISO 27001 audits for its staking platform. Conducted by Sensiba, these audits validate SOL Strategies' enterprise-grade security practices and regulatory readiness. A dedicated trust center is available at <u>trust.solstrategies.io</u>.

**Treasury and Validator Operations Update**

As of May 31, 2025:

* SOL Holdings: 395,000+ SOL (~CAD $92 million), majority actively staked

* SOL Staked to Company Validators: 3,036,462 SOL (excluding white-label validators)

* Validators operated: 4

* Unique Wallets Served: Over 5,500

* Validator uptime: 99.995%

* Peak APY delivered: 8.59% (Orangefin); Network average: 8.2%

*A validator is a specialized server node on the Solana blockchain that processes transactions, verifies blocks, and maintains network consensus. Operating validators requires significant technical expertise and capital investment and is core to blockchain infrastructure activities.*

*Source: <u>Stakewiz</u> , data sourced from stake account reward entries for epochs ending May 2025.*

**Media & Industry Engagement**

In May 2025, SOL Strategies expanded its media presence and technical thought leadership across top platforms:

* Leah Wald, CEO, appeared on <u>FintechTV</u> to discuss the global growth of the Solana ecosystem and the broader outlook for institutional adoption in crypto markets.

* Leah was also quoted in <u>MarketWatch</u> on Bitcoin's recent rally and featured in <u>Streetwise Reports</u> in a profile on SOL Strategies' approach to tokenized Solana investment and infrastructure innovation.

------

* Michael Hubbard, COO, participated in a high-profile panel at Solana Accelerate titled *<u>"Go Public,</u> <u>On-Chain:</u> <u>The Future of IPOs"</u>* (1:37:10-1:58:25), alongside Galaxy and Superstate, where he discussed SOL Strategies' leadership in tokenizing public company shares on Solana.

* Following the launch of Superstate's Opening Bell platform, SOL Strategies was featured in over 45 unique stories across top-tier outlets, including an exclusive in <u>Forbes</u>, and additional coverage in <u>CoinDesk</u>, <u>The Block</u>, <u>Blockworks</u>, <u>Benzinga</u>, and <u>CNBC Crypto World</u>, emphasizing the Company's potential to become first publicly traded company to tokenize its listed shares on Solana.

* Following the Company's partnership announcement with DigitalX, coverage appeared in over 15 outlets, including <u>Crypto News</u>, <u>Crypto.News</u>, <u>Tron Weekly</u>, and <u>99Bitcoins</u>, reinforcing SOL Strategies' focus on secure, compliant Solana staking infrastructure and its alignment with regulated global partners.

* SOL Strategies' filing of a USD $1B base shelf prospectus was covered in crypto trades like <u>The Defiant</u>, while the Company's completion of its SOC 1 and SOC 2 audit was cited as a key milestone in strengthening institutional trust in Solana-native staking in outlets like <u>GuruFocus</u>.

**About SOL Strategies**

SOL Strategies Inc. (CSE: HODL) (OTCQB: CYFRF) is a Canadian company actively investing in, supporting, and providing infrastructure for the Solana blockchain ecosystem that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications.

To learn more about SOL Strategies, please visit <u>www.solstrategies.io</u>. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's SEDAR+ profile at <u>www.sedarplus.ca</u>.

Investor Contact:<br>John Ragozzino, CFA<br><u>solstrategies@icrinc.com</u><br> 203.682.8284

**Media Contact:** <u>solstrategies@scrib3.co</u>

**Cautionary Note Regarding Forward-Looking Information:**

Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved."

Forward-looking statements in this news release include statements regarding the timing for the Company's release of its financial results, the Company's financial outlook, the potential for the Company's common shares to be tokenized and traded on the Solana blockchain, and the potential for the Company to raise capital pursuant to its short form base shelf prospectus.. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.

------

There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.

**Disclaimer:**

SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies.

None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action.

![](exhibit99-126x4x1.jpg)

To view the source version of this press release, please visit<br><u>https://www.newsfilecorp.com/release/254158</u>

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## Exhibit 99.127

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![](exhibit99-127xz001.jpg)

**CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED**

**SEPTEMBER 30, 2024 AND 2023**

 **(Expressed in Canadian Dollars)**

------

![](exhibit99-127xu001.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and Directors of

Sol Strategies Inc.

***Opinion on the Consolidated Financial Statements***

We have audited the accompanying consolidated statements of financial position of Sol Strategies Inc. (the "Company"), as of September 30, 2024, and 2023, and the related consolidated statements of income (loss) and comprehensive income (loss), changes in shareholders' equity, and cash flows for the years ended September 30, 2024, and 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and 2023 and the results of its operations and its cash flows for the years ended September 30, 2024, and 2023, in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatements of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the Company's auditor since 2025.

---

| | |
|:---|:---|
|  | **/s/ DAVIDSON & COMPANY LLP** |
| Vancouver, Canada | Chartered Professional Accountants |
| June 16, 2025 |  |

---

![](exhibit99-127xu002.jpg)

------

**SOL STRATEGIES INC.** 

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

**(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2024** | **September 30,**<br>**2023** |
| **Assets** |  |  |
| Current Assets |  |  |
| Cash and cash equivalents (note 4) | $**1808052** | $1927280 |
| Receivables and prepaid expenses (note 5) | **6750** | 117138 |
|  | **1814802** | 2044418 |
| Cryptocurrencies (note 6) | **25575512** | 7852418 |
| Investments (note 7) | **1513331** | 6464119 |
| Other assets (note 8) | **-** | 60145 |
| Deferred tax asset (note 18) | **-** | 633145 |
|  | $**28903645** | $17054245 |
| **Liabilities** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued liabilities (note 9 and 13) | $**232929** | $226476 |
| Income taxes payable (note 18) | **1547686** |  |
|  | **1780615** | 226476 |
| Long-term liabilities |  |  |
| Deferred tax liability (note 18) | **399406** |  |
|  | **2180021** | 226476 |
| **Shareholders' Equity** |  |  |
| Capital stock (note 10) | **17256668** | 17864782 |
| Reserves | **17297454** | 17669046 |
| Accumulated other comprehensive income (loss) | **2540513** | (196846) |
| Accumulated deficit | **(10371011)** | (18509213) |
|  | **26723624** | 16827769 |
|  | $**28903645** | $17054245 |

---

Nature of operations and going concern (note 1)

Subsequent events (note 20)

SIGNED ON BEHALF OF THE BOARD

(Signed) *"Rubsun Ho"* (Signed) *"Ungad Chadda"* <br> Director Director

Page 3 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.** 

**CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)**

**(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Years ended September 30,** | **2024** | 2023 |
| **Income (loss)** |  |  |
| Realized gain on dispositions of cryptocurrencies (note 6) | $**7648448** | $- |
| Realized gain (loss) on investments (note 7) | **1160891** | (1178765) |
| Unrealized gain (loss) on investments (note 7) | **1064911** | (4060250) |
| Dividend income | **322362** | 44068 |
| Staking and validating income (net) | **271245** |  |
| Other income | **148833** | 159599 |
| Gain from dissolution of subsidiary after tax (note 15) | **76096** |  |
| Realized (loss) gain on disposition of assets (Note 8) | **(21759)** | 536633 |
|  | **10671027** | (4498715) |
| **Expenses** |  |  |
| Share based compensation (notes 11 and 13) | **1320919** | 430945 |
| Consulting fees (note 13) | **479493** | 424735 |
| General and administrative | **344096** | 198052 |
| Professional fees (note 13) | **323686** | 270058 |
| Amortization (note 8) | **31636** | 70885 |
| Director fees (note 13) | **30000** | 69213 |
| Foreign exchange (gain) loss | **(50725)** | 346669 |
|  | **2479105** | 1810557 |
| **Income (loss) before taxes** | **8191922** | (6309272) |
| Deferred tax expense (recovery) (note 18) | **36572** | (26944) |
| Provision for income tax (note 18) | **1547686** |  |
| Income tax expense (recovery) | **1584258** | (26944) |
| **Net income (loss) for the year** | **6607664** | (6282328) |
| **Other comprehensive income** |  |  |
| Unrealized gain on cryptocurrencies (note 6) | **3733338** | (288197) |
| Deferred (tax) recovery on unrealized gain on cryptocurrencies (note 18) | **(995979)** | 91351 |
| **Total comprehensive income (loss)** | $**9345023** | $(6479174) |
| **Earnings (loss) per share - basic and diluted** | $**0.04** | $(0.04) |
| **Weighted average number of shares outstanding - basic and diluted** | 149187364 | 156073535 |

---

Page 4 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.** 

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Accumulated** |  |  |
|  |  |  |  | **Other** |  |  |
|  | **Common** | **Capital** |  | **Comprehensive** | **Retained** |  |
|  | **Shares** | **Stock** | **Reserves** | **Income** | **Deficit** | **Total** |
| **Balance, September 30, 2022** | **160070718** | $**18572547** | $**17238101** | $**-** | $**(12226885)** | $**23583763** |
| Share based compensation (note 11) |  |  | 430945 |  |  | 430945 |
| Purchase of shares for cancellation (note 10) | (8003535) | (707765) |  |  |  | (707765) |
| Net loss for the period |  |  |  |  | (6282328) | (6282328) |
| Other comprehensive income |  |  |  | (196846) |  | (196846) |
| **Balance, September 30, 2023** | **152067183** | $**17864782** | $**17669046** | $**(196846)** | $**(18509213)** | $**16827769** |
| Share based compensation (note 11) |  |  | 1320919 |  |  | 1320919 |
| Options exercised (note 11) | 1709625 | 170963 |  |  |  | 170963 |
| Fair value of options exercised (note 11) |  | 159847 | (159847) |  |  |  |
| Options cancelled and expired (note 11) |  |  | (1532664) |  | 1532664 |  |
| Purchase of shares for cancellation (note 10) | (7603343) | (938924) |  |  |  | (938924) |
| Dissolution of subsidiary (note 15) |  |  |  |  | (2126) | (2126) |
| Net income for the period |  |  |  |  | 6607664 | 6607664 |
| Other comprehensive income |  |  |  | 2737359 |  | 2737359 |
| **Balance, September 30, 2024** | **146173465** | $**17256668** | $**17297454** | $**2540513** | $**(10371011)** | $**26723624** |

---

Page 5 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(EXPRESSED IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **Years ended September 30,** | **2024** | **2023** |
| **Cash and cash equivalents (used in) provided by:** |  |  |
| **Operating activities** |  |  |
| Income (loss) for the period | $**6607664** | $(6282328) |
| **Adjustments for:** |  |  |
| Realized (gain) loss on cryptocurrencies (note 6) | **(7648448)** |  |
| Realized (gain) loss on investments (note 7) | **(1160891)** | 1178765 |
| Unrealized (gain) loss on investments (note 7) | **(1064911)** | 4060250 |
| Gain from dissolution of subsidiary after tax (note 15) | **(76096)** |  |
| Realized loss (gain) on sale of assets (note 8) | **21759** | (536633) |
| Stock-based compensation (notes 11 and 13) | **1320919** | 430945 |
| Amortization (note 8) | **31636** | 70885 |
| Foreign exchange gain | **(3123)** |  |
| Income received in cryptocurrencies (note 6) | **(660317)** | (36642) |
| Deferred tax expense (recovery) (note 18) | **36572** | (26944) |
| **Net change in non-cash working capital items:** |  |  |
| Receivables and prepaid expenses | **110388** | 30472 |
| Treasury management assets | **-** | 60037 |
| Accounts payable and accrued liabilities | **80433** | (81816) |
| Income taxes payable (note 18) | **1547686** |  |
| **Cash used in operating activities** | **(856729)** | (1133009) |
| **Financing activities** |  |  |
| Exercise of options and warrants (note 11 and 12) | **170963** |  |
| Purchase of shares for cancellation (note 10) | **(938924)** | (707765) |
| **Cash used in financing activities** | **(767961)** | (707765) |
| **Investing activities** |  |  |
| Purchase of cryptocurrencies (note 6) | **(19690454)** | (8120383) |
| Proceeds from sale of cryptocurrencies (note 6) | **14012576** | 19620 |
| Proceeds from sale of assets (note 8) | **6750** | 1174922 |
| Purchase of investments | **-** | (9434917) |
| Sale/redemption of investments (note 7) | **7176590** | 1591591 |
| **Cash provided by (used in) investing activities** | **1505462** | (14769167) |
| **Change in cash and cash equivalents** | **(119228)** | (16609941) |
| **Cash and cash equivalents, beginning of the year** | **1927280** | 18537221 |
| **Cash and cash equivalents, end of the year** | $**1808052** | $1927280 |

---

Page 6 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**1. NATURE OF OPERATIONS AND GOING CONCERN**

Sol Strategies Inc. (the "Company" or "Sol Strategies") is a publicly listed company incorporated in Canada under the legislation of the Province of Ontario. The registered office of the Company is located at 217 Queen St W #401, Toronto, ON M5V 0R2. Since February 4, 2019, the Company's common shares trade on the Canadian Securities Exchange ("CSE") under the trading symbol "HODL".

The Company is an actively managed crypto investment company. The Company's objective is to invest in crypto companies that drive technological innovation, demonstrate market leadership, achieve real-world adoption, navigate regulatory environments effectively, and form strategic partnerships for sustained growth (the "Investment Objective"). Sol Strategies executes its Investment Objective through three lines of effort: (1) Treasury management - Maintaining a core portfolio of cryptocurrencies for long-term growth, enhanced with risk management strategies to minimize volatility, and generating yield through lending, staking, and liquidity provisioning; (2) Private equity focused on early stage companies in the DeFi and blockchain sectors; and (3) Active investments to generate yield through strategic activities, including Bitcoin mining and stalking and validating Solana. The Company's cryptocurrencies and related investments may be subject to significant fluctuations in value and are subject to risks unique to the asset class and different from traditional financial assets (note 16). Additionally, during the year ended September 30, 2024, certain assets were held in cryptocurrency exchanges or with custodians that are limited in oversight by regulatory authorities.

**Basis of Presentation**

The consolidated financial statements have been prepared and presented on a going concern basis. The Company has sufficient cash and cash equivalents and other liquid assets to supports its operations for the next twelve months.

**2. SUMMARY OF MATERIAL ACCOUNTING POLICIES**

**Statement of Compliance**

The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standard Board ("IASB").

The preparation of the consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the accounting policies. Those areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3. The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.

On June 13, 2025, the Board of Directors approved the consolidated financial statements for the years ended September 30, 2024 and 2023.

**Principles of Consolidation**

Consolidated financial statements include all entities over which a company has control. For accounting purposes, control is established by an investor when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date control is transferred to a company and are no longer consolidated on the date control ceases.

The financial statements for the year ended September 30, 2023 are consolidated financial statements that include the accounts of the Company and its wholly owned subsidiary located in Netherlands, Khan Resources B.V. ("KRBV"). Intercompany balances and any unrealized gains and losses or income and expenses arising from intercompany transactions are eliminated in preparing the consolidated financial statements.

Page 7 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

On February 26, 2024 (the "Dissolution Date"), the Netherland chamber of commerce deregistered KRBV from the business registry and dissolved the company. KRBV was a dormant company, it had no revenue except accrued interest on its intercompany loan to the Company. As a result, the financial results of the Company are not consolidated for the year ended September 30, 2024, from the Dissolution Date onwards (see note 15).

**Basis of Measurement**

The consolidated financial statements have been prepared using on the historical cost basis except for certain financial instruments and cryptocurrencies that are measured at fair value. In addition, the consolidated financial statements have been prepared using the measurement basis specified by IFRS for each type of asset, liability, revenue and expense and the accrual basis of accounting, except for cash flow disclosure.

**Functional and Presentation Currency**

The functional currency is the currency of the primary economic environment in which the entity operates. The functional currency determinations were conducted through an analysis of the consideration factors identified in International Accounting Standard IAS 21. The functional currency of the parent company Sol Strategies is the Canadian dollar and the functional currency of the wholly owned subsidiary KRBV is the Euro. The presentation currency for the Company is the Canadian dollar.

Foreign currency transactions are translated into the functional currency of the respective entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end is measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in profit or loss.

The results and financial position of entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) assets and liabilities for each statement of financial position presented are translated at the rate of exchange in effect as at the date of the statement of financial position; (ii) income and expense items are translated at the average rates of exchange in effect during the reporting period; and (iii) all resulting exchange differences are recognized in accumulated other comprehensive income (loss).

**Cryptocurrencies**

The Company's cryptocurrencies are primarily traded in active markets and are purchased to hold as a store of value and for the long term, this is supported by the Company's risk management strategies to reduce volatility, and lending, staking and liquidity provisioning to generate yield. As a result, the Company has determined that its holdings of cryptocurrencies should be accounted for under IAS 38, as the Company is expected to access future economic benefits of its cryptocurrencies through future sale, or by exchanging the cryptocurrency asset for goods or services. The Company has elected to use the revaluation model for its cryptocurrencies, which is to measure the assets at fair value with reference to the principal market on the date of revaluation less any subsequent amortization and impairment losses.

The net Increase in fair value over the initial cost of the cryptocurrencies is recorded in other comprehensive income (loss). The accumulated other comprehensive income is transferred directly to deficit upon de-recognition (i.e., sale or exchange for another cryptocurrency). IAS 38 does not allow the amounts in accumulated other comprehensive income to be transferred to profit or loss. However, if the cryptocurrency's carrying amount is decreased as a result of a revaluation, the decrease shall be recognized in profit and loss. However, IAS 38 permits the decrease to be recognized in other comprehensive income (loss) to the extent of any credit balance in accumulated other comprehensive income in respect of that asset. The decrease recognized in other comprehensive income (loss) reduces the amount accumulated in equity under the heading of accumulated other comprehensive income. The Company has determined that its Bitcoin and Solana cryptocurrency holdings are traded in active markets and based on quoted prices at the end of each reporting period end as of 24:00 UTC.

**Cash and Cash Equivalents**

This category consists of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash within ninety days of original purchase.

Page 8 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**Financial Instruments** 

*Initial recognition and measurement (financial assets and financial liabilities)* - The Company initially recognizes financial assets and financial liabilities when it becomes party to the contractual provisions of the financial instrument. Initial measurement of the financial instrument is at fair value, plus for those financial assets and liabilities not classified at fair value through profit or loss ("FVTPL"), directly attributable transaction costs.

*Financial assets* - subsequent classification and measurement - Financial assets are classified in their entirety including any embedded derivatives. Two criteria are used to determine how financial assets should be classified and measured: (a) the Company's business model for managing the financial assets; and (b) the contractual cash flow characteristics of the financial asset. The Company's financial assets include cash and cash equivalents, treasury management investments, and investments.

Where the contractual cash flow characteristics of financial assets, taken on an instrument-by-instrument basis, give rise, on specified dates, to cash flows that are solely payments of principal and interest then a financial asset is classified as subsequently measured at amortized cost using the effective interest method. This is called the SPPI criterion. A financial asset that does not meet the SPPI criterion is always measured at FVTPL. Cash and cash equivalents are measured at amortized cost.

In addition, at initial recognition, the Company may make an irrevocable election to present in other comprehensive income ("OCI"), subsequent changes in the fair value of an investment in an equity instrument that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination. Such an equity instrument is classified as subsequently measured at fair value through other comprehensive income ("FVOCI"). Gains and losses recognized in OCI are not subsequently transferred to profit or loss, although the Company may determine to transfer the cumulative gain or loss within equity to accumulated deficit. Dividends are still recognized in profit or loss unless they clearly represent a recovery of part of the cost of the investment. Financial assets are classified as fair value through profit or loss when the financial asset is held for trading, or it is designated as fair value through profit or loss. A financial asset is classified as held for trading if: (i) it has been acquired principally for the purpose of selling in the near future; (ii) it is a part of an identified portfolio of financial instruments that the Company manages and has an actual pattern of short-term profit taking; or (iii) it is a derivative that is not designated and effective as a hedging instrument. Financial assets classified as fair value through profit or loss are stated at fair value with any gain or loss recognized in the consolidated statements of net loss and comprehensive loss. The net gain or loss recognized incorporates any dividend or interest earned on the financial asset. The Company has classified its investments at fair value through profit or loss. The Company classifies all investments in equity instruments and treasury management investments as FVTPL.

*Reclassification* - Financial assets are only reclassified between measurement categories, when and only when, the Company's business model for managing those changes. This is a significant event and thus is expected to be uncommon. There were no reclassifications across its measurement categories for the years presented.

*Impairment of financial assets* - Financial assets are subject to an impairment test at each reporting date. It also includes any off-balance sheet loan commitments and financial guarantees. At each reporting date, the Company assesses whether there is objective evidence that a financial asset is impaired. If such evidence exists, the Company recognizes an impairment loss. For financial assets carried at amortized cost, the loss is the difference between the amortized cost of the loan or receivable and the present value of the estimated future cash flows, discounted using the instrument's original effective interest rate. The carrying amount of the asset is reduced by this amount either directly or indirectly through the use of an allowance account. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. The Company's only financial assets subject to impairment are due from related party and loans receivable, which are measured at amortized cost. The Company has elected to apply the simplified approach to impairment as permitted by IFRS 9, which requires the expected lifetime loss to be recognized at the time of initial recognition of the receivable. An impairment loss is reversed in subsequent periods if the amount of the expected loss decreases, and the decrease can be objectively related to an event occurring after the initial impairment was recognized.

The expected lifetime loss of a financial asset at amortized cost, is estimated based on the expected credit loss ("ECL"). ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive. The shortfall is then discounted at an approximation to the asset's original effective interest rate.

*Financial liabilities* - Financial liabilities are subsequently measured at amortized cost using the effective interest method or FVTPL. Non-derivative financial liabilities are measured at amortized cost, unless they are required to be measured at FVPL as is the case for held for trading or derivative instruments, or the Company has opted to measure the financial liability at FVPL. The Company's financial liabilities include trade payable and accrued liabilities, which are each measured at amortized cost. All financial liabilities are recognized initially at fair value and in the case of loans and borrowings, net of directly attributable transaction costs.

Page 9 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

After initial recognition, financial liabilities measured at amortized cost are subsequently measured at the end of each reporting period at amortized cost using the Effective Interest Rate ("EIR") method. Amortized cost is calculated by taking into account any discount or premium on acquisition and any fees or costs that are an integral part of the EIR. The EIR amortization is included in finance cost, in the consolidated statements of loss and comprehensive loss. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.

Financial liabilities measured at FVPL are carried at fair value in the consolidated statements of financial position with changes in fair value recognized in the consolidated statement of loss and comprehensive loss. The Company does not have any financial liabilities classified as at FVPL. Financial liabilities include accounts payable and loan payable and are measured at amortized cost.

*Derecognition* - The Company will derecognize a financial asset when the rights to the cash flows from the financial asset have expired or where the Company has transferred substantially all risks and rewards associated with the financial asset and has relinquished control of the financial asset.

The Company will derecognize a financial liability only when extinguished - i.e., when the obligation specified in the contract is discharged, cancelled or it expires.

**Provisions** 

A provision is recognized on the statement of financial position when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

**Income Tax** 

Income tax comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case the income tax is also recognized directly in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted, at the end of the reporting year, and any adjustment to tax payable in respect of previous years. Deferred taxes are recorded for temporary differences existing at closing date between the tax base value of assets and liabilities and their carrying amount on the consolidated statements of financial position.

Deferred tax assets and liabilities are measured at the expected tax rates for the year during which the asset will be realized, or the liability settled, based on tax rates (and tax regulations) enacted or substantively enacted at year-end. They are reviewed at the end of each year, in line with any changes in applicable tax rates.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of tax losses and unused tax credits, insofar as it is probable that a taxable profit will be available, or when a current tax liability exists, to make use of those deductible temporary differences, tax loss carry forwards and unused tax credits, except where the deferred tax asset associated with the deductible temporary difference is generated by initial recognition of an asset or liability in a transaction which is not a business combination, and which, at the transaction date, does not impact earnings, tax income or loss.

**Income** 

Revenues are earned primarily from the Company's investments and include interest income (recognized as other income), and dividend income. The Company also earns income from staking and validating Solana.

Interest income is recognized at the time persuasive evidence of an agreement exists, the amount is fixed and determinable, and its collection is reasonably assured. These amounts are recognized as other income in the consolidated statements of comprehensive income.

Staking and validating Solana ("SOL") revenue is earned through the delegation of Solana tokens to a validator licensed by the Company to earn staking rewards (the "Rewards"). The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such rewards earned on a gross basis. Each validation is considered a performance obligation. Revenue is recognized over time as rewards are earned and recorded on the blockchain, with the value determined based on the fair value of the Solana tokens at the time of distribution.

Page 10 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

Dividends are received from financial assets measured at fair value through profit or loss (FVTPL). Dividends are recognized when the right to receive payment is established.

**Leases**

The Company was a lessor to unrelated third parties for certain of its intangible assets to provide customers access to the use the asset over a period of one month to up twelve months. The Company does not have any lease related liabilities. The Company sold its intangible assets that generate lease income during the year ended September 30, 2023.

**Stock-based Compensation** 

The Company has a share option plan. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. Fair value of each tranche is measured using the Black-Scholes option pricing model. Compensation expense is recognized as a charge to profit or loss over the tranche's vesting period by increasing reserves based on the number of awards expected to vest. Any consideration paid on exercise of share options is credited to capital stock. The reserves resulting from stock-based payment is transferred to capital stock when the options are exercised.

For equity settled transactions with non-employees, the Company measures goods or services received at their fair value, unless that fair value cannot be estimated reliably, in which case, the Company measures their value by reference to the fair value of the equity instruments granted.

**Capital Stock** 

Capital stock is classified as equity. Incremental costs directly relating to the issuance of new common shares are shown as a deduction net of tax from the proceeds.

**Unit Offerings**

The Company accounts for unit offering financing using the relative fair value method. Under this method, the fair values of the shares and share purchase warrants are determined separately and prorated to the actual proceeds received. The fair value of shares is determined using the share price at the issue date. The fair value of share purchase warrants is measured using the Black-Scholes valuation model at the issue date.

**Earnings (Loss) per Share** 

Basic earnings (loss) per share amounts are calculated by dividing net income (loss) for the year by the basic weighted average number of common shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net income (loss) by the weighted average number of shares outstanding during the period plus the weighted average number of diluted shares that would be issued on the conversion of all the dilutive potential ordinary shares into common shares. The options and warrants of the Company are anti-dilutive as of September 30, 2024 and 2023.

**Other Assets - Internet Protocol (IP) Addresses and Crypto Mining Equipment**

The Company's fixed and intangible assets acquired are measured at cost of acquisition on initial recognition which includes the purchase price and related acquisition costs. Subsequent to initial recognition, fixed and intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite. Fixed and Intangible assets with finite lives are amortized over their useful economic life and assessed for impairment whenever there is an indication that the fixed or intangible asset may be impaired. The amortization period and the amortization method for the fixed assets and intangible assets with a finite useful life are reviewed at least once at each fiscal year-end. The bitcoin mining equipment acquired by the Company from a third party (note 8) are amortized on a straight-line basis over 5 years from the acquisition date. The Company sold its bitcoin mining assets at the end of the fiscal year ended September 30, 2024 and its intangible assets that generated lease income during the year ended September 30, 2023.

Page 11 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**New Accounting Standards** 

*Accounting standards issued but not yet applied*

On April 9, 2024, the IASB issued a new standard on presentation and disclosure in financial statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of profit or loss, required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures), and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information.

**3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS**

The preparation of consolidated financial statements in compliance with IFRS requires the Company's management to make certain estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the of the consolidated financial statement, and the reported amounts of revenues and expenses during the period. These estimates are periodically reviewed, and any necessary adjustments are reported in the period in which they become known. Actual results could differ from these estimates due to risks and uncertainties. Significant estimates and assumptions include provisions for future tax, stock based compensation, fair value of the Level 2 and Level 3 investments, and the fair value of treasury management investments. Actual results and outcomes may differ from management's estimates and assumptions due to risks and uncertainties. To the extent that there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. The Company based its estimates on historical experience, future cash flows, discount rates, comparable market analysis, and on various other assumptions that are believed to be reasonable; the result of which forms the basis for making judgments about the carrying values of assets and liabilities, as well as reported amounts during the reported periods.

**Critical Judgements**

*Accounting for cryptocurrencies* - The Company accounts for its cryptocurrencies as Intangible assets which are recorded at fair value using the revaluation model under IAS 38 with changes in fair value recorded in other comprehensive income. There was significant judgment applied by the Company in making this assessment as accounting for cryptocurrencies depends on the nature of the asset, the use of the asset including the expected timeline or use, and how the asset is held. This judgement included consideration of the operations, strategy, and intent of management. The Company classifies its cryptocurrency holdings as noncurrent and as an intangible asset, based on the Company's overall strategy to hold a portfolio of asset tokens from an approved product list in order to buy/sell to risk-manage long positions. The Company also assessed the industry and what would appropriately reflect the operations of the Company. With the guidance under IFRS, there was significant judgment by management in determining the accounting for cryptocurrencies as well as the classification. As the Company's operations mature together with the industry, the accounting and classification of cryptocurrencies continue to be sources of critical judgment and estimation.

*Valuation techniques of certain investments (Level 2 and Level 3)* - The fair value of investments is measured using an income or market approach (note 16). The determination of the fair value requires significant judgement by the Company and include the use of the milestone method analysis and other valuation techniques.

**Significant Estimates**

*Valuation of Level 2 and Level 3 investments* - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions see note 16.

The directors have determined that they do not control any, or have significant influence over, of the Company's investments, primarily as in all cases the Company's interest in the equity of these companies are less than 5% and the Company is not exposed, and has no right, to variable returns from these companies.

Page 12 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

*Property, plant and equipment* - Property, plant and equipment and intangible assets (collectively, the "Assets") are capitalized if they are expected to have future economic benefits and are expected to be economically recoverable. Purchased Assets are valued on acquisition using established methodologies and amortized over their estimated useful economic lives, except in those cases where Assets are determined to have indefinite lives, where there is no foreseeable limit over which these Assets would generate net cash flows. The valuations and lives of Assets are based on management's best estimates of future performance and periods over which value from Assets will be derived. Assets are assessed for impairment indicators at each reporting date or earlier if events and circumstances indicate. The Company sold its bitcoin mining assets at the end of the fiscal year ended September 30, 2024. The Company estimates the useful life of Assets to be at least five years based on the expected technical obsolescence of such assets.

**4. CASH AND CASH EQUIVALENTS**

The balance consists of funds in cash and banks immediately available for use in the Company's operations. There were no restricted balances at September 30, 2024 and September 30, 2023.

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2024** | September 30,<br>2023 |
| Cash in banks | $**1808052** | $1927280 |
|  | $**1808052** | $1927280 |

---

**5. RECEIVABLES AND PREPAID EXPENSES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2024** | September 30,<br>2023 |
| Other receivables | $**6750** | $- |
| Prepaid expenses |  | 54477 |
| Harmonized sales tax |  | 62661 |
|  | $**6750** | $117138 |

---

**6. CRYPTOCURRENCIES** 

Cryptocurrencies are digital assets that are typically part of a decentralized system of recording transactions, new digital assets are issued based on reliance on cryptography to secure its transactions, to control the creation of additional digital assets, and to verify the transfer of assets.

The balance of cryptocurrencies at cost and at market value, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 56.25 | $1684587 | $2183891 | $4816138 |
| Solana | 100763.02 | 14580870 | 19977930 | 20759374 |
| **Balance at September 30, 2024** |  | $**16265457** | $**22161821** | $**25575512** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quantity** | **Cost (USD) <sup>(a)</sup>** | **Cost (CAD) <sup>(a)</sup>** | **Market Value** |
| Bitcoin | 215.37 | $**6038069** | $**8172065** | $**7852418** |
| **Balance at September 30, 2023** |  | $**6038069** | $**8172065** | $**7852418** |

---

(a) The cost is determined as the historical weighted average cost of the cryptocurrencies acquisitions and disposals.<br>(b) As at September 30, 2025 all of the Company's Solana was staked to a validator.

Page 13 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

The activity of the Company's cryptocurrencies, excluding the Bitcoin posted as collateral at Wintermute and Zerocap, for the years ended September 30, 2024 and 2023 is as follows is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022** | $**3035** |
| Cash purchases | 8120383 |
| Cash sales | (19620) |
| Investment income received in cryptocurrencies | 31625 |
| Dividend income received in cryptocurrencies | 36642 |
| Change in fair value | (319647) |
| **Balance at September 30, 2023** | $**7852418** |
| Cash purchases | 19690454 |
| Cash sales | (2984944) |
| Gain on sales | 2278025 |
| Staking income | 271245 |
| Investment income received in cryptocurrencies | 293504 |
| Cryptocurrencies posted as collateral | (7969119) |
| Crptocurrency collateral returned | 2407478 |
| Foreign exchange gain | 3113 |
| Change in fair value | 3733338 |
| **Balance at September 30, 2024** | $**25575512** |

---

During the year ended September 30, 2024 the Company resumed its treasury management investment strategy to generate income on its cryptocurrency assets, previously executed during the year ended September 30, 2022. As at the date hereof, the treasury management investment strategy involves selling covered European call options (each, an "Option") on OTC markets. During the year ended September 30, 2024, the Company transferred 50 Bitcoin to each of Zerocap Pty Ltd. ("Zerocap") and Wintermute Trading Ltd. ("Wintermute") to use as collateral. The Company recognizes premium income upon the sale of an Option. In the event the Option expires in-the-money, the Company's underlying Bitcoin used as collateral to sell the Option are sold at the strike price of the Option. There were no Options written during the year ended September 30, 2023. Prior to September 30, 2024, 51.3566 Bitcoin held at Zerocap were sold to hold nil Bitcoin. All cryptocurrencies pledged as collateral were withdrawn from treasury management accounts and there were no open treasury management trades at September 30, 2024.

The activity of the Company's cryptocurrencies posted as collateral during the years ended September 30, 2024 and 2023, is as follows:

---

| | |
|:---|:---|
| **Balance at September 30, 2022 and September 30, 2023** | $**-** |
| Cryptocurrencies posted as collateral | 7969119 |
| Cryptocurrency collateral returned | (2407478) |
| Investment income received in cryptocurrencies | 95568 |
| Cash sales | (11027632) |
| Gain on sales | 5370423 |
| **Balance at September 30, 2024** | $**-** |

---

Page 14 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**7. INVESTMENTS**

The Company's investments in equity instruments are classified as FVTPL and are carried at fair value. The detail is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Quantity** | **September 30,**<br>**2024** | <br>Quantity | September 30,<br>2023 |
| Animoca Brands Corporation Limited (a) | **909** | $**442** | 9090909 | $5120897 |
| Chia Network Inc. (b) | **19860** | **488781** | 19860 | 366932 |
| NGRAVE NV (c) | **138966** | **196881** | 138966 | 80976 |
| Lucy Labs Flagship Offshore Fund SPC (d) | **500** | **827227** | 500 |  |
| Streetside Development, LLC (e) | **-** | **-** | 1429 | 122646 |
| zkSNACKS Limited - Shares (f) | **-** | **-** | 4500 | 772668 |
|  |  | $**1513331** |  | $6464119 |

---

(a) During the year ended September 30, 2023, the Company acquired 9,090,909 shares of Animoca Brands Corporation Limited ("Animoca") at a price of AUD $1.10 ($1.04 CAD) per share, totaling AUD $10,000,000 ($9,434,917 CAD). In the year ending September 30, 2024, the Company sold 9,090,000 of these shares at an average price of AUD $0.84 per share ($0.76 CAD), resulting in net proceeds of AUD $7,670,133 ($6,905,859 CAD). This sale generated a realized gain of $1,785,473 (2023 - $nil), after accounting for accumulated unrealized losses from previous fair value adjustments. As of September 30, 2024, the fair value of the remaining 909 shares was determined to be $442 (2023 - 9,090,909 shares valued at $5,120,897), with the Company recognizing an unrealized loss of $70 (2023 - $4,314,020 unrealized loss on 9,090,909 shares).

(b) During the year ended September 30, 2021, pursuant to the Company's Simple Agreement for Future Equity ("SAFE") investment in Chia Network Inc. ("Chia"), the Company received 19,806 shares of Series B Stock priced at US$15 per share, and the Company also exercised its participation rights and acquired 600 common shares of Chia at a price of US$21.21. As at September 30, 2024, the Company estimated Chia's fair market value per share to be $23.95 (US$17.74), the Company recognized an unrealized gain of $121,849 (2023 - unrealized loss of $2,558) to a value of $488,781 (2023 - $366,932) in the consolidated statements of comprehensive income.

(c) During the year ended September 30, 2022, the Company's convertible loan to NGRAVE NV ("NGRAVE") was converted into common shares of NGRAVE pursuant to its convertible loan agreement which resulted in the Company receiving 138,966 NGRAVE common shares at a deemed price of EUR 0.7936. As at September 30, 2024, the Company estimated the fair value of NGRAVE to be C$196,881 (2023 - $80,976) as at September 30, 2024, the Company recognized an unrealized gain of $115,905 (2023 - unrealized loss $67,443) on its NGRAVE investment in the consolidated statements of comprehensive income.

(d) During the year ended September 30, 2022, the Company invested $636,075 (US$500,000) in Lucy Labs Flagship Offshore Fund Crypto Rising tide portfolio ("Lucy Labs"). On November 11, 2022, FTX Trading Ltd. ("FTX") filed for Chapter 11 bankruptcy protection. FTX was a counterparty of Lucy Labs. Based on correspondence with Lucy Labs, the Company wrote down its investments with Lucy Labs to $nil during the year ended September 30, 2023. During the year ended September 30, 2024, the Company received an offer to sell its rights to the FTX bankruptcy claims from a third party for $827,227 (the "FTX Claims Offer"), and therefore the Company wrote the value of Lucy Labs up to $827,227, recognizing an unrealized gain of $827,227 during the year ended September 30, 2024 (2023 - $707,649).The FTX Claims Offer was consummated subsequent to year end.

(e) During the year ended September 30, 2024, the founders of Streetside Development, LLC ("Streetside") were charged by the United States Department of Justice, and Streetside's operations were shut down. As a result, the Company determined the fair value of its Streetside investment was $nil as at September 30, 2024 (2023 - $122,646) and the Company recognized a realized loss of $122,646 in the financial statements (2023 - unrealized loss of $3,870).

(f) During the year ended September 30, 2024 the Company received 2.01 bitcoin of dividend income valued at $248,213 (2023 - 0.90 bitcoin of dividend income valued at $36,642) from zkSNACKS. Also, during the year, zkSNACKS management decided to cease operations at its conjoin coordination business. As a result, the Company determined the fair value of its zkSNACKS was $nil as at September 30, 2024 (2023 - $772,668) recognizing a realized loss of $772,668 (2023 - unrealized gain of $327,641).

Page 15 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

During the year ended September 30, 2022, the Company invested US$1,500,000 ($1,923,658) in three tranches acquiring 14,762.1833 Class B common shares of the AB Digital Strategies Fund (the "Isla Shares") managed by UK FCA-regulated Isla Capital Ltd. ("Isla"). During the year ended September 30, 2023, the Company redeemed its Isla shares for proceeds of $1,591,591, realizing a loss of $471,116 in the consolidated statements of comprehensive income. During the year ended September 30, 2024, Isla sold its right to FTX bankruptcy claims (the "Claims"). As a result, the Company recognized a realized gain of $270,661 for the year ended September 30, 2024 (2023 - a realized loss of $471,116) representing its pro rata share of the proceeds from Isla's sale of the Claims, which were received by the Company during the year ended September 30, 2024.

The activity of investments for the years ended September 30, 2024 and 2023 is as follows:

---

| | |
|:---|:---|
| **Balance, September 30, 2022** | $**3859808** |
| Cash purchases | 9434917 |
| Proceeds from sales (net) | (1591591) |
| Realized loss on sale of investments | (1178765) |
| Net unrealized loss on investments | (4060250) |
| **Balance, September 30, 2023** | $**6464119** |
| Proceeds from sales (net) | (7176590) |
| Realized gain on sale of investments | 1160891 |
| Net unrealized gain on investments | 1064911 |
| **Balance, September 30, 2024** | $**1513331** |

---

**8. OTHER ASSETS**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2024** | **September 30,<br>2023** |
| Cryptocurrency mining assets <sup>(a)</sup> | $**-** | $60145 |
| Intangible assets (b) | **-** | - |
| Non-current prepaid insurance |  | - |
|  | $**-** | $60145 |

---

(a) Cryptocurrency mining assets of $nil (September 30, 2023 - $60,145) due to the disposition of the Company's 25 Bitmain S19J Pro miners (the "Equipment") to a third party for gross proceeds of $6,750, recognizing a loss of $21,759. The Equipment was purchased by the Company during the year ended September 30, 2021 for cash consideration of $376,819 and leased to MineOn LLC, which hosts and operates bitcoin mining machines in Iowa, USA, for clients pursuant to managed mining and profit sharing agreements. The Equipment was amortized on a straight line basis from the date of acquisition over its estimated economic useful life of 5 years. During the year ended, September 30, 2024, the Company recognized amortization expense of $31,636 (2023 - $70,885) for total accumulated amortization of $nil (2023 - $98,035).

**9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**

The balances are comprised as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2024** | September 30,<br>2023 |
| Trade accounts payable | $**83413** | $107025 |
| Accrued liabilities | **149516** | 119451 |
|  | $**232929** | $226476 |

---

Page 16 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**10. CAPITAL STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) AUTHORIZED**

Unlimited common shares with a par value of $nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) ISSUED**

---

| | | |
|:---|:---|:---|
| **Common Shares** | **Shares** | **Stated Value** |
| **Balance at September 30, 2022** | **160070718** | $**18572547** |
| Purchase of shares for cancellation | (8003535) | (707765) |
| **Balance at September 30, 2023** | **152067183** | $**17864782** |
| Purchase of shares for cancellation | (7603343) | (938924) |
| Exercise of options (note 11) | 1709625 | 330810 |
| **Balance at September 30, 2024** | **146173465** | $**17256668** |

---

Pursuant to the terms of a normal course issuer bid, during the year ended September 30, 2024, the Company purchased and cancelled 7,603,343 shares (2023 - 8,003,535).

**11. STOCK-BASED COMPENSATION**

The Company has a stock option plan (the "Plan") in place under which it is authorized to grant options to acquire shares of the Company to directors, officers, consultants, and other key employees of the Company. The number of common shares subject to options granted under the Plan is limited to 10% in the aggregate, of the number of issued and outstanding common shares of the Company at the date of the grant of the option. The exercise price of any option granted under the Plan may not be less than the fair market value of the common shares at the time the option is granted, less any permitted discount. Options issued under the Plan may be exercised during a period determined by the board of directors which cannot exceed five years. The plan does not require any vesting period, and the board of directors may specify a vesting period on a grant by grant basis. As at September 30, 2024, the maximum number of shares issuable pursuant to the Plan was 14,617,347, of which 14,617,346 shares had been granted, leaving 1 share available for issue.

On September 11, 2024, the Company issued 149,971 options for future services to a director and a consultant to buy common shares at an exercise price of $0.145 per common share and expiring on September, 2029. The director was granted 49,971 stock options that vested on the grant date. The consultant was granted 100,000 stock options that vested on December 11, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.145, dividend yield 0%, expected volatility based on historical volatility of 95.6%, a risk free interest rate of 2.75%, and an expected life of 5 years. The estimated fair value of the options on the grant date was estimated at $15,967 of which $7,543 was charged to the statement of income (loss) and comprehensive income (loss) during the year ended September 30, 2024 .

On August 7, 2024, the Company issued 6,900,000 options for future services to a directors and officers to buy common shares at an exercise price of $0.155 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.155, dividend yield 0%, expected volatility based on historical volatility of 95.9%, a risk free interest rate of 3.0%, and an expected life of 5 years. The fair value of the options was estimated at $788,387 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

Page 17 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

------

**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

On July 8, 2024, the Company issued 2,000,000 options for future services to an officer to buy common shares at an exercise price of $0.115 per common share and expiring on August 7, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk free interest rate of 3.46%, and an expected life of 5 years. The fair value of the options was estimated at $170,432 which was charged to statement of income (loss) and comprehensive income (loss) on the grant date.

On July 3, 2024, the Company cancelled 6,900,000 options (the "Cancelled Options") that had previously been granted to directors and officers; 1,500,000 options granted on April 9, 2021 with an exercise price of $0.30 per share, 4,400,000 options granted on July 7, 2021 with an exercise price of $0.165 per share, and 1,000,000 options granted on October 7, 2021 with an exercise price of $0.20 per share. An estimated fair value of $1,273,040 had previously vested in full for the Cancelled Options and was credited to retained earnings upon cancellation (2023 - 4,000,000 options were cancelled, 2,000,000 options granted on July 7, 2021 with an exercise price of $0.165 and 2,000,000 options granted on November 11, 2021 with an exercise price of $0.24).

On July 3, 2024, the Company issued 3,000,000 options for future services to a director and an officer to buy common shares at an exercise price of $0.115 per common share and expiring on July 3, 2029. The stock options vested on the grant date. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.115, dividend yield 0%, expected volatility based on historical volatility of 96.0%, a risk free interest rate of 3.57%, and an expected life of 5 years. The fair value of the options was estimated at $255,774 which was charged to the statement of income (loss) and comprehensive income (loss) on the grant date.

During the year ended September 30, 2024, 1,719,875 options that had previously vested expired unexercised; 250,000 options granted December 1, 2020 with an exercise price of $0.10, 1,400,000 option granted on July 7, 2021 with an exercise price of $0.165 and 279,500 options granted on November 21, 2022 with an exercise price of $0.10 (2023 - 900,000 granted on February 13, 2019 with an exercise price of $0.07) and $259,629 was credited to retained earnings for expired options (2023 - $nil).

On November 21, 2022, the Company issued 3,956,500 options for future services to a director and an officer to buy common shares at an exercise price of $0.10 per common share and expiring on November 21, 2027. The stock options vest 25% on each six month anniversary of the grant date, fully vesting on November 21, 2024. The fair value assigned was estimated using the Black-Scholes option pricing model with the following assumptions: share price $0.10, dividend yield 0%, expected volatility based on historical volatility of 161.6%, a risk free interest rate of 3.32%, and an expected life of 5 years. The fair value of the options was estimated at $369,925 on the grant date of which $98,813, representing the pro rata value of options that had vested during the period, was recognized in the consolidated statement of comprehensive income for the year ended September 30, 2024 (2023 - $224,402). During the year ended September 30, 2024, 1,709,625 options were exercised, 209,500 unvested options expired, and 69,875 vested options expired.

As a result of the forgoing, during the year ended September 30, 2024, $1,320,919 was charged to the statement of income (loss) and comprehensive income (loss) for share based compensation (2023 - $430,945) and $1,532,664 was credited to retained earnings for cancelled and expired options (2023 - $nil).

The continuity of outstanding stock options for the year ended September 30, 2024 and 2023, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**September 30,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **13106500** | $**0.18** | 14050000 | $0.18 |
| Granted | **12049971** | $**0.14** | 3956500 | $0.10 |
| Exercised | **(1709625)** | $**0.10** |  | $0.00 |
| Cancelled | **(6900000)** | $**0.20** | (4000000) | $0.20 |
| Expired | **(1929500)** | $**0.15** | (900000) | ($0.07) |
| **Ending balance - outstanding** | **14617346** | $**0.13** | 13106500 | $0.16 |

---

Page 18 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

------

**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

The detail of outstanding options at September 30, 2024 and 2023 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Expiry Date** | **September 30,**<br>**2024** | <br>**Exercisable** | **Exercise**<br>**Price** | **September 30,**<br>**2023** | <br>**Exercisable** | **Exercise**<br>**Price** |
| August 28, 2025 | **600000** | **600000** | $**0.100** | 600000 | 600000 | $0.10 |
| December 1, 2025 | **-** | **-** | **-** | 250000 | 250000 | $0.12 |
| April 9, 2026 | **-** | **-** | **-** | 1500000 | 1000000 | $0.30 |
| July 7, 2026 | **-** | **-** | **-** | 5800000 | 3650000 | $0.17 |
| October 7, 2026 | **-** | **-** | **-** | 1000000 | 500000 | $0.20 |
| November 21, 2027 | **1967375** | **1967375** | $**0.100** | 3956500 | 989125 | $0.10 |
| July 4, 2029 | **3000000** | **3000000** | $**0.115** |  |  |  |
| July 8, 2029 | **2000000** | **2000000** | $**0.115** |  |  |  |
| August 7, 2029 | **6900000** | **6900000** | $**0.155** |  |  |  |
| September 11, 2029 | **149971** | **149971** | $**0.145** |  |  |  |
| **Ending balance - outstanding** | **14617346** | **14617346** | $**0.132** | **13106500** | **6989125** | $**0.16** |

---

At September 30, 2024, 14,617,346 options were exercisable at a weighted average price of $0.13 per share (September 30, 2023 - 6,989,125 at $0.16). The weighted average life of the outstanding options is 4.80 years (September 30, 2023 - 1.9 years).

**12. WARRANTS**

The continuity of outstanding warrants the years ended September 30, 2024 and 2023, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**September 30,**<br>**2024** | **Weighted**<br>**average**<br>**exercise**<br>**price** | <br>September 30,<br>2023 | Weighted<br>average<br>exercise<br>price |
| Beginning balance | **16764707** | $**0.40** | 26698442 | $0.33 |
| Expired | **(16764707)** | **-$0.40** | (9933735) | $0.25 |
| **Ending balance** | **-** | $**0.00** | 16764707 | $0.40 |

---

The detail of outstanding warrants at September 30, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **September 30,** | September 30, | Exercise |
| **Expiry Date** | **2024** | 2023 | Price |
| March 24, 2024 | **-** | 14705883 | $0.395 |
| March 24, 2024 | **-** | 2058824 | $0.425 |
|  | **-** | 16764707 |  |

---

The weighted average life of the outstanding warrants as at September 30, 2023 was 0.48 years.

Page 19 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**13. RELATED PARTY DISCLOSURES**

The Company's related parties include its subsidiary, key management personnel and any entity related to key management personnel that has transactions with the Company. Key management personnel are those persons having the authority and responsibility for planning, directing, and controlling the activities of the Company, directly or indirectly.

During the year ended September 30, 2024, the Company paid $105,540 (2023 - $nil) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $1,209 (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $87,100 (2023 - $72,000) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $nil (2023 - $6,000) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $96,800 (2023 - $77,502) for consulting services provided by an officer of the Company. At September 30, 2024 there is $nil (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $111,100 (2023 - $120,000) for consulting services provided by an officer of the Company. At September 30, 2024, there is $9,900 (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $72,000 (2023 - $72,000) for consulting services provided by a director and officer of the Company. At September 30, 2024, there is $nil (2023 - $nil) of accounts payable to this related party.

During the year ended September 30, 2024, the Company paid $nil (2023 - $5,000) for consulting services provided by a director of the Company. At September 30, 2024, there is $nil of accounts payable to this related party (2023 - $nil).

During the year ended September 30, 2024, $104,160 (2023 - $63,223) was charged for legal services by a firm of which an officer of the Company is a partner. At September 30, 2024, there is $44,050 of accounts payable to this related party (2023 - $3,819).

**Key Management Compensation**

Key management includes the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, and directors of the Company.

The compensation payable to current and former key management is shown below:

---

| | | |
|:---|:---|:---|
| Years ended September 30, | **2024** | **2023** |
| Consulting fees | $**472540** | $346502 |
| Director fees | **30000** | 69213 |
| Stock-based compensation | **1320919** | 430945 |
|  | $**1823459** | $846660 |

---

At September 30, 2024, included in accounts payable and accrued liabilities is $55,156 (2023 - $10,295) owed to related parties.

**14. CONTINGENT LIABILITIES**

Netherlands Preliminary Tax Assessment - On February 15, 2017 the Company received an income tax reassessment from the Netherlands tax authority reassessing the Company's subsidiary KRBV for an amount payable of 3.3 million euros (CAD$5 million). This reassessment was pursuant to management challenging an earlier preliminary assessment for an amount payable by KRBV of 11.4 million euros. The preliminary tax assessment and the reassessment were both issued before KRBV had filed its 2016 tax return and as such are based on incomplete information. The 2016 tax return has since been filed. It is management's opinion that the assessed amount payable of 3.3 million euros (CAD$5 million) continues to be an over assessment. The Netherlands Tax Authority has again issued a preliminary assessment, and the Company has filed a notice of objection to this assessment. The Company believes that the tax collection period of tax debts has expired, however, it is possible that the recovery period for any taxes that could be owed may have been extended. As a result, no provision has been made for this reassessment in these financial statements.

Page 20 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**15. DISSOLUTION OF SUBSIDIARY**

On February 26, 2024, the Company's wholly owned Netherland's subsidiary, Khan Resources B.V. ("KRBV") was dissolved by the Dutch Chamber of Commerce (the "Dissolution"). As a result, the Company has recognized a gain due to the Dissolution as follows:

---

| | |
|:---|:---|
| Gain on forgiveness of loan from KRBV | $**5112345** |
| Loss on Dissolution | **(5036249)** |
| Net gain on Dissolution | $**76096** |

---

**16. FAIR VALUE** 

The fair value of the Company's cash and cash equivalents, accounts payable and accrued liabilities are not materially different from the carrying values given the short term nature**.**

**Recurring fair value measurements (financial and non-financial assets)**

(i) Fair value hierarchy

The Company records certain financial instruments or assets on a recurring fair value basis as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2024** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $442 | $1512889 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 25575512 |  |
|  | $**-** | $**25575954** | $**1512889** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Recurring fair value measurements - September 30, 2023** | **Level 1** | **Level 2** | **Level 3** |
| **Financial assets at fair value through FVTPL** |  |  |  |
| Equity investment | $- | $5120897 | $1343222 |
| **Non financial assets at fair value through other comprehensive income** |  |  |  |
| Cryptocurrencies |  | 7852418 |  |
|  | $**-** | $**12973315** | $**1343222** |

---

The Company defines its fair value hierarchy as follows:

**Level 1:** The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

**Level 2:** The fair value of financial instruments that are not traded in an active market (e.g., other public markets) is determined using valuation techniques that maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Page 21 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

The Company exercised significant due diligence and judgement and determined that this presence and availability of this market was the most advantageous market and utilized the pricing available in the market as an estimate of the fair value of the investment. In addition, The Company's cryptocurrenciesare classified as Level 2 determined by taking the price from <u>www.coinmarketcap.com</u> as of 24:00 UTC.

**Level 3:** If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

(ii) Valuation *techniques used to determine fair values:*

Specific valuation techniques used to fair value financial instruments, specifically those that are not quoted in an active market. These are development stage companies, as such the Company utilized a market approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The use of quoted market prices in active or other public markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The use of most recent transactions of similar instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Changes in expected technical milestones of the investee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Changes in management, strategy, litigation mattes or other internal matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Significant changes in the results of the investee compared with the budget, plan, or milestone

(iii) *Transfers between levels 2 and 3*

There were no transfers between levels 2 and 3 during the year ended September 30, 2024 and the year ended September 30, 2023.

(iv) *Valuation inputs and relationships to fair value*

The following table summarizes the quantitative information about the significant unobservable inputs used in the level 3 fair value measurements (see above for valuation techniques adopted):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Description** | **Fair Value** | **Fair Value** | **Unobservable**<br>**Inputs** | <br>**Range of inputs** |
|  | September 30, | September 30, | September 30, | September 30, |
|  | 2024 | 2023 | 2024 | 2024 |
| Investments | $1512889 | $1343222 | (a) and (b) | N/A |

---

(vi) Valuation processes

The Investment Committee includes a team that performs the valuations of all items required for financial reporting purposes, including level 3 fair values. This team collaborates with the chief financial officer ("CFO") at least once every three months which is in-line with the Company's reporting requirements. The main Level 3 inputs derived and evaluated by the Company's team are the timeline for expected milestones and assessment of the technical matter relating to the technology.

The independent valuators utilized a variety of approaches and assumptions, including but not limited to:

- Income, comparable market multiples, precedent transactions, and cost approach

- Forecast revenue, expenses, and profitability

- Income tax

- Capex

- Discount rates

- Residual value

- Volatility of underlying asset

- Risk free rate of interest

Page 22 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

- Value of strategic coin reserves, if any

- Weighting of various valuation approaches

- Timing of liquidity date, if any

The Company performed a sensitivity analysis on the carrying value of its Level 3 assets at September 30, 2024 and noted that a 20% decrease would result in a $302,666 decrease in fair value.

**17. FINANCIAL RISK FACTORS**

**Capital Management**

The Company manages and adjusts its capital structure, based on the funds available to the Company, in order to support the investment in cryptocurrencies and blockchain companies. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company's management to sustain future development of the business. The Company considers capital to be its capital stock, warrant, and stock option components of shareholders' equity.

To effectively manage the Company's capital requirements, the management has in place a planning, budgeting, and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company ensures that there are sufficient working capital and planned future capital raises to meet its short-term business requirements, taking into account its anticipated cash flow from operations and its holding of cash and short-term investments.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company's approach to capital management during the year ended September 30, 2024.

**Safeguarding of Cryptocurrency Assets**

The Company retains two third-party custodians (the "Custodians") to safeguard its cryptocurrency assets; Coinbase Custody Trust Company, LLC ("Coinbase") and Gemini Trust Company, LLC., to hold the Company's Bitcoin and Solana cryptocurrency assets, with Coinbase holding 100% of the Company's Solana, and almost 100% of the Company's Bitcoin, at September 30, 2024. The Custodian is only responsible for holding and safeguarding the Company's cryptocurrency assets and has not appointed a sub-custodian to hold certain cryptocurrency assets.

Coinbase, located at 200 Park Avenue South, Suite 1208, New York, NY 10003, is regulated by the New York Department of Financial Services (NYDFS) and operates as an independently capitalized entity. Coinbase is a fiduciary under § 100 of the New York Banking Law and is licensed to custody its clients' digital assets in trust on their behalf. As a New York state-chartered trust, Coinbase is held to the same fiduciary standards as national banks and is a qualified custodian for purposes of § 206(4)-2(d)(6) of the Advisers Act, commonly called the custody role.

Sol Strategies is not aware of anything with regards to the Coinbase's operations that would adversely affect the Company's operations and there are no known security breaches or other similar incidents involving the custodian as a result of which the Company's cryptocurrency assets have been lost or stolen. Coinbase held 100% of the Company's bitcoin holdings and carries an annually renewed commercial crime policy, with Coinbase Global Inc., Coinbase's parent company, as the named insured. In the event of a bankruptcy or insolvency Sol Strategies will enforce its rights under the Custodial Services Agreement through Arbitration under the laws of the State of New York, and will be in contact with Coinbase's Regulator, the New York State Department of Financial Services, as well as Coinbase's named insurer.

The due diligence Sol Strategies performed on Coinbase included confirmation that an annual SOC 1 audit report pertaining to internal controls over financial reporting, as well as an annual SOC 2 audit report pertaining to controls related to operations and compliance were completed by Coinbase, a review of negative news related to Coinbase, and a review of online training and tutorials offered by Coinbase.

Page 23 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

The Company utilizes the third-party trading platform, Wintermute Asia Pte. Ltd. ("Wintermute") as an OTC desk for derivatives. Wintermute Trading Ltd (registered company number 10882520) and Wintermute Asia Pte. Ltd. (registered company number 202108542H) are proprietary trading firms providing liquidity in various crypto assets and, in the case of Wintermute Asia Pte. Ltd, certain derivatives referencing crypto assets. Wintermute Trading Limited is registered with the Financial Conduct Authority ("FCA") as a Cryptoasset firm and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The Company uses Wintermute for is OTC derivative trading desk. The Company is not aware of anything with regards to Wintermute's operations that would adversely affect the Company's operations. Wintermute is not related to the Company.

The Company utilizes the third-party trading platform, Zerocap Pty Ltd ("Zerocap") as an OTC desk for derivatives. Zerocap (registered company number 100635539) is a proprietary trading firm providing liquidity in various crypto assets and certain derivatives referencing crypto assets. Zerocap is registered with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a Digital Currency Exchange ("DCE") and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations. The Company uses Zerocap for is OTC derivative trading desk. The Company is not aware of anything with regards to Zerocap's operations that would adversely affectthe Company's operations. Zerocap is not related to the Company.

**Risk Disclosures** 

Exposure to credit, interest rate, cryptocurrency and currency related risks arises in the normal course of the Company's business.

**Credit Risk**

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company limits its credit risk by placing its cash with high credit quality financial institutions and with cryptocurrency exchanges on which the Company has performed internal due diligence procedures. The Company deems these procedures necessary as some exchanges are unregulated and not subject to regulatory oversight. Furthermore, cryptocurrency exchanges engage in the practice of commingling their clients' assets in exchange wallets. When crypto assets are commingled, transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is risk around the occurrence of transactions, or the existence of period end balances represented by exchanges.

As at September 30, 2024, the Company holds $1,808,052 in cash and cash equivalents at high credit quality financial institutions (September 30, 2023 - $1,927,280). The Company's due diligence procedures around exchanges and custodians utilized throughout the period include, but are not limited to, internal control procedures around on-boarding new exchanges or custodians which includes review of the exchanges or custodians anti-money laundering ("AML") and know-your-client ("KYC") policies by the Company's chief investment officer, constant review of market information specifically regarding the exchanges or custodians security and solvency risk, setting balance limits for each exchange account based on risk exposure thresholds and preparing weekly asset management reports to ensure limits are being followed and having a fail-over plan to move cash and cryptocurrencies held on an exchange or with a custodian in instances where risk exposure significantly changes.

There is no significant credit risk with respect of receivables.

**Interest Rate Risk** 

The Company has no exposure to interest rate risk since there are no outstanding debts or other payables subject to interest charges at the end of the reported periods.

Page 24 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**Cryptocurrencies Risk**

Cryptocurrencies are measured at fair value less cost to sell. Cryptocurrency prices are affected by various forces including global supply and demand, interest rates, exchanges rates, inflation or deflation and political and economic conditions. Further, cryptocurrencies have no underlying backing or contracts to enforce recovery of invested amounts. The profitability of the Company is related to the current and future market price of cryptocurrencies; in addition, the Company may not be able to liquidate its cryptocurrencies at its desired price if necessary. Investing in cryptocurrencies is speculative, prices are volatile, and market movements are difficult to predict. Supply and demand for such currencies change rapidly and are affected by a variety of factors, including regulation and general economic trends.

Cryptocurrencies have a limited history; their fair values have historically been volatile, and the value of cryptocurrencies held by the Company could decline rapidly. A decline in the market prices of cryptocurrencies could negatively impact the Company's future operations. Historical performance of cryptocurrencies is not indicative of their future performance.

Many cryptocurrency networks are online end-user-to-end-user networks that host a public transaction ledger (blockchain) and the source code that comprises the basis for the cryptographic and algorithmic protocols governing such networks. In many cryptocurrency transactions, the recipient or the buyer must provide its public key, which serves as an address for a digital wallet, to the seller. In the data packets distributed from cryptocurrency software programs to confirm transaction activity, each party to the transaction user must sign transactions with a data code derived from entering the private key into a hashing algorithm, which signature serves as validation that the transaction has been authorized by the owner of the cryptocurrency. This process is vulnerable to hacking and malware and could lead to theft of the Company's digital wallets and the loss of the Company's cryptocurrency.

Cryptocurrencies are loosely regulated and there is no central marketplace for exchange. Supply is determined by a computer code, not a central bank. Additionally, exchanges may suffer from operational issues, such as delayed execution, which could have an adverse effect on the Company.

The cryptocurrency exchanges on which the Company may trade on are relatively new and, in many cases, largely unregulated, and therefore may be more exposed to fraud and failure than regulated exchanges for other assets. Any financial, security, or operational difficulties experienced by such exchanges may result in an inability of the Company to recover money or cryptocurrencies being held on the exchange. Further, the Company may be unable to recover cryptocurrencies awaiting transmission into or out of the exchange, all of which could adversely affect an investment of the Company. Additionally, to the extent that the digital asset exchanges representing a substantial portion of the volume in digital asset trading are involved in fraud or experience security failures or other operational issues, such digital asset exchanges' failures may result in loss or less favorable prices of cryptocurrencies, or may adversely affect the Company, its operations, and its investments.

Furthermore, crypto-exchanges engage in commingling their client's assets in exchange wallets. When crypto-assets are commingled transactions are not recorded on the applicable blockchain ledger but are only recorded by the exchange. Therefore, there is a risk around the occurrence of transactions or existence of period end balances represented by exchanges.

**Loss of access risk**

The loss of access to the private keys associated with the Company's cryptocurrency holdings may be irreversible and could adversely affect an investment. Cryptocurrencies are controllable only by an individual that posses both the unique public key and private key or keys relating to the "digital wallet" in which the cryptocurrency is held. To the extent a private key is lost, destroyed, or otherwise compromised and no backup is accessible the Company may be unable to access the cryptocurrency.

**Irrevocability of transactions**

Cryptocurrency transactions are irrevocable and stolen or incorrectly transferred cryptocurrencies may be irretrievable. Once a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer or theft generally will not be reversible, and the Company may not be capable of seeking compensation.

Page 25 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**Hard fork and air drop risks**

Hard forks may occur for a variety of reasons including, but not limited to, disputes over proposed changes to the protocol, significant security breach, or an unanticipated software flaw in the multiple versions of otherwise compatible software. In the event of a hard fork in a cryptocurrency held by the Company, it is expected that the Company would hold an equivalent amount of the old and new cryptocurrency following the hard fork.

Air drops occur when the promoters of a new cryptocurrency send amounts of the new cryptocurrency to holders of another cryptocurrency that they will be able to claim a certain amount of the new cryptocurrency for free.

The Company may not be able to realize the economic benefit of a hard fork or air drop, either immediately or ever, for various reasons. For instance, the Company may not have any systems in place to monitor or participate in hard forks or airdrops.

**Market Risk**

Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company's investments are susceptible to other market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company's investment guidelines.

As at September 30, 2024, management's estimate of the effect on equity to a +/- 10% change in the market prices of the Company's investments, with all other variables held constant, is $252,433 (September 30, 2023 - $646,412).

**Foreign Currency Risk**

The Company is exposed to foreign currency risk on financial assets and liabilities that are denominated in a currency other than the Canadian dollar. The currencies giving rise to this risk are primarily the U.S. dollar, Australian dollar, and the Euro, the balance of net monetary assets in such currencies as of September 30, 2024 is $1,762,619 (September 30, 2023 - $1,669,621). Sensitivity to a plus or minus 10% change in the foreign exchange rates would result in a foreign exchange gain/loss of $176,262 (September 30, 2023 - $166,962).

**Liquidity Risk**

The Company is exposed to liquidity risk primarily as a result of its trade accounts payable as well as the risk of not being able to liquidate assets at reasonable prices. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at September 30, 2024, the Company had cash and cash equivalents balance of $1,808,052 (September 30, 2023 - $1,927,280) to settle accounts payable and accrued liabilities of $232,929 (September 30, 2023 - $226,476). All of the Company's trade accounts payable have contractual maturities of less than 30 days and are subject to normal trade terms.

Page 26 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

**18. INCOME TAX**

A reconciliation of income taxes at statutory rates with reported taxes is as follows:

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| | | |
|:---|:---|:---|
| **Years ended September 30** | **2024** | **2023** |
| Income (loss) before income taxes | $8191922 | $(6309272) |
| Expected income tax expense (recovery) | 2170857 | (1671959) |
| Permanent differences | (250237) | 1556368 |
| Share issue costs and other | (50134) | (50134) |
| Non-capital loss deferred (utilized) | (322800) | 165725 |
| Change in unrecognized deductible temporary differences | 36572 | (26944) |
| **Total income tax recovery reported in the statements of comprehensive income** | $**1584258** | $**(26944)** |
| Current income tax recovery | 1547686 |  |
| Deferred income tax recovery | 36572 | (26944) |

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Income taxes related to items recognized in other comprehensive income are as follows:

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| | | |
|:---|:---|:---|
| **Years ended September 30** | **2024** | **2023** |
| Current income tax |  |  |
| Unrealized gain (loss) on cryptocurrencies | 995979 | (91351) |
| **Income tax expense (recovery)** | $**995979** | $**(91351)** |

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The change for the year in the Company's net deferred tax liability is as follows:

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| | | |
|:---|:---|:---|
| **Years ended September 30** | **2024** | **2023** |
| Deferred tax assets (liabilities) |  |  |
| Share issue costs | $49511 | $99645 |
| Investments | (5770) | 1114518 |
| Cryptocurrencies | (904628) | 91351 |
| Other assets | (109608) | (1958) |
| Allowable capital losses | 565319 | 121307 |
| Non-capital losses available for future period |  | 489800 |
|  | (405176) | 1914663 |
| Unrecognized deferred tax assets | $5770 | $(1281518) |
| **Net deferred tax liabilities** | $**(399406)** | $**633145** |

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The change for the year in the Company's net deferred tax liability is as follows:

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| | | |
|:---|:---|:---|
| **Years ended September 30** | **2024** | **2023** |
| Balance, beginning of year | $633145 | $514850 |
| Deferred tax recovery recognized in net income | (36572) | 26944 |
| Deferred tax expense recognized in other comprehensive income | (995979) | 91351 |
| **Income tax recovery (expense)** | $**(399406)** | $**633145** |

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Page 27 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

The significant components of the Company's temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Expiry Date** |  | **Expiry Date** |
|  | **2024** | **Range** | **2023** | **Range** |
| **Temporary Difference** |  |  |  |  |
| Investments | (5770) | No expiry date | 1114518 | No expiry date |
| Netherlands |  | n/a | 167000 | 2024 - 2026 |

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**19. SEGMENTED INFORMATION**

The Company operates in one reportable operating segment being investment in cryptocurrencies and blockchain technology.

**20. SUBSEQUENT EVENTS**

On October 22, 2024, the Company announced that it has entered into a $10 million unsecured, revolving demand credit facility credit facility with Antanas Guoga, the Company's Chairman and director.

On November 25, 2024, acquired four blockchain validators (the "Validators") and certain assets related to the Validators from Cogent Crypto (the "Cogent Asset Acquisition") to total consideration of (i) USD $1,000,000 in cash on Closing, (ii) 1,162,000 common shares of the Company on Closing at a price of CAD $1.20 per common share, and (iii) issue 18,592,000 common shares over a period of three years from Closing on specific dates prescribed in the definitive agreement.

On December 31, 2024, the Company acquired three blockchain validators and certain assets related to the validators from Orangefin Ventures LLC ("Orangefin"), a blockchain infrastructure company specializing in validator operations and staking services (the "Acquisition") for consideration of USDC$750,000 ($1,076,250) on closing of the Acquisition, (ii) 503,621 common shares at a value of $2.14 per share on closing of the Acquisition, and (iii) will issue US$5,000,000 ($7,175,000) in additional common shares (valued at the trading price per Common Share at the time of issuance) in six equal tranches every six months over a period of three years from the Acquisition date.

On January 7, 2025, the Company announced that it had entered into an agreement to increase the $10 million unsecured, revolving demand credit facility credit facility with Antanas Guoga, the Company's Chairman and director, announced on October 22, 2024, to $25 million.

On January 16, 2025, the Company closed a private placement financing of CAD $27.5 million (the "Private Placement") of convertible debenture units (each a "CD Unit") with ParaFi Capital. Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 400 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company, and the Debentures are convertible at any time into common shares of the Company at CAD $2.50 per common share. Each warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of CAD $2.50 per common share, exercisable at any time on or before the five-year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest. As at the date hereof, 3,618,668 warrants have been exercised into common shares of the Company.

On January 24, 2025, the Company closed a private placement financing of CAD $2.5 million (the "Private Placement") of convertible debenture units (each a "CD Unit"). Each CD Unit consists of one debenture ("Debenture") with a principal amount of CAD $1,000, and 214 warrants. Interest on the Debentures accrues at a rate of 2.5% per annum, payable semi-annually in cash or common shares of the Company, and the Debentures are convertible at any time into common shares of the Company at CAD $4.66 per common share. Each warrant entitles the holder to purchase one (1) common share of the Company at an exercise price of CAD $4.66 per common share, exercisable at any time on or before the five-year anniversary of the closing of the Private Placement. The debentures are redeemable in cash after the three-year anniversary of the closing of the Private Placement at 112% of the principal value, plus accrued and unpaid interest.

Page 28 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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**SOL STRATEGIES INC.**<br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**(EXPRESSED IN CANADIAN DOLLARS)**<br>**Years ended September 30, 2024 and 2023**

On March 17, 2025, the Company completed the acquisition of three validators, including the Laine validator, as well as stakewiz.com, for consideration of $5 million in cash on closing, 5 million common shares of Sol Strategies issued at closing at a price of $3.00 per share, 5 million common shares to be issued on March 17, 2026, at a price of $3.00 per share, 4.5 million common share purchase warrants (the "Warrants"), each exercisable into one common share at an exercise price of $2.98 per Common Share, vesting monthly over a 36-month period, each Warrant exercisable for a period of 3 years from vesting

On April 23, 2025, the Company announced that it has entered into an agreement for the issuance of a convertible note (the "Notes") facility of up to USD $500 million (the "Facility") with ATW Partners (the "Investor"). Pursuant to the Facility, the Company will issue Notes in the aggregate principal amount of USD $20 million as its first tranche (the "Initial Closing"), with additional capacity of up to USD $480 million available in subsequent drawdowns, subject to certain conditions. On May 1, 2025, the Company closed on the first tranche of US$20 million, of which, as at the date hereof, USD $2,535,000 of principal has been converted into 1,057,479 common shares of the Company.

On May 27, 2025, the Company announced that it had filed a preliminary short form base shelf prospectus (the "Preliminary Shelf Prospectus") with securities regulators in each of the provinces and territories of Canada to raise up to US$1,000,000,000. Upon the filing and receipt of a final base shelf prospectus, the Company will be permitted to make offerings of common shares (including through "at-the-market" offerings), warrants, subscription receipts, units, debt securities, or any combination thereof for up to a maximum amount prescribed in the final base shelf prospectus and over the period which the base shelf prospectus is effective.

On June 6, 2025, the Company issued 3,098,667 common shares pursuant to the Cogent Asset Acquisition.

From October 1, 2024 to the date hereof, 10,438,346 stock options have been exercised into common shares of the Company.

Page 29 <br> *The accompanying notes are an integral part of these consolidated financial statements.*

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## Exhibit 99.128

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**Form 52-109F1R** 

**Certification of refiled annual filings**

This certificate is being filed on the same date that Sol Strategies Inc. (the "issuer") has refiled its annual financial statements.

I, Douglas Harris, the Chief Financial Officer of Sol Strategies Inc., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of the issuer for the financial year ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

Date: June 18, 2025.

<u>*"Douglas Harris"*</u> <br> Douglas Harris<br>Chief Financial Officer

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## Exhibit 99.129

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**Form 52-109F1R** 

**Certification of refiled annual filings**

This certificate is being filed on the same date that Sol Strategies Inc. (the "issuer") has refiled its annual financial statements.

I, Leah Wald, the Chief Executive Officer of Sol Strategies Inc., certify the following:

1. ***Review:*** I have reviewed the AIF, if any, annual financial statements and annual MD&A, including, for greater certainty, all documents and information that are incorporated by reference in the AIF (together, the "annual filings") of the issuer for the financial year ended September 30, 2024.

2. ***No misrepresentations:*** Based on my knowledge, having exercised reasonable diligence, the annual filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, for the period covered by the annual filings.

3. ***Fair presentation:*** Based on my knowledge, having exercised reasonable diligence, the annual financial statements together with the other financial information included in the annual filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the annual filings.

Date: June 18, 2025.

<u>*"Leah Wald"*</u> <br> Leah Wald<br>Chief Executive Officer

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## Exhibit 99.130

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![](exhibit99-130x001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the use in this Registration Statement on Form 40-F of our report dated June 16, 2025, relating to the consolidated financial statements of Sol Strategies Inc., which are part of this Registration Statement.

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| | |
|:---|:---|
|  | **/s/ DAVIDSON & COMPANY LLP** |
| Vancouver, Canada | Chartered Professional Accountants |

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June 18, 2025

![](exhibit99-130x002.jpg)

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