Highlights:

Record quarterly amount of bitcoin mined of 2,816 for Q2 2019.

Retained Bitcoin of 3,250, a record amount for Hut 8, an increase of 24% from Q1 2019.

Increased Retained Bitcoin Value by 222% from $14.3 million on March 31, 2019 to $46.0 million on June 30, 2019.

Release of second quarter 2019 financial results prior to market open on August 19, 2019.

TORONTO, ON, July 8, 2019 – Hut 8 Mining Corp. (“Hut 8” or “the Company”) (TSXV: HUT) (OTCQX: HUTMF), one of the world’s largest public cryptocurrency mining companies by operating capacity, announces that for the second quarter it has mined 2,816 bitcoin and has Retained Bitcoin of 3,250, both the highest quarterly amount in Hut 8’s history. Hut 8 also announces that it will release its second quarter 2019 financial results prior to market open on Monday, August 19, 2019.

For the second quarter of 2019, Hut 8 mined 2,816 bitcoin compared to 2,405 bitcoin in the first quarter of 2019, and 786 bitcoin in the second quarter of 2018. In addition, Hut 8’s Retained Bitcoin increased by 635 bitcoin in the second quarter from March 31, 2019 to the June 30, 2019 balance of 3,250. The bitcoin price as at June 30, 2019 was $14,156 (US$10,817) resulting in a Retained Bitcoin Value of $46.0 million. The price of bitcoin as at March 31, 2019 was $5,486 (US$4,105), compared with $14,156 (US$10,817) as at June 30, 2019, an increase of 158% over the course of the quarter.

“Hut 8’s strategy to only mine and retain bitcoin, after paying its expenses, has resulted in substantial value creation for investors in the second quarter of 2019,“ said Andrew Kiguel, Chief Executive Officer of Hut 8. “In Q2-2019, we experienced lower electricity prices than the prior quarter and a much improved bitcoin price.”

A conference call has been scheduled to discuss the Company’s second quarter 2019 financial results, hosted by Andrew Kiguel, Chief Executive Officer, and Jimmy Vaiopoulos, Chief Financial Officer with further details below:

Date: Monday, August 19, 2019

Time: 10:00 a.m. ET

Dial-In: 1 (888) 465-5079, Canada

1 (888) 424-8151, USA

Passcode: 8540 288#

Pursuant to the press release dated March 15, 2019, the Company issued 29,918 common shares at a deemed price of $2.20 per common share to Induna Energy Inc. in consideration of the services provided in May 2019.

ABOUT HUT 8 MINING CORP.

Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, inclusive of Bitfury Holding BV, one of the world’s leading full-service hardware and software blockchain technology companies. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 85 BlockBox AC data centers with current operating capacity of 98.2 MW and 784 PH/s.

Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.

The Company’s common shares are listed under the symbol “HUT” on the TSX Venture Exchange and as “HUTMF” on the OTCQX Exchange.

Key investment highlights and FAQ’s: https://www.hut8mining.com/investors.

Keep up-to-date on Hut 8 events and developments and join our online communities at Facebook, Twitter, Instagram and LinkedIn.

Hut 8 Corporate Contact:

Andrew Kiguel

Chief Executive Officer

Tel: (647) 256-1992

Email: info@hut8mining.com

Jimmy Vaiopoulos

Chief Financial Officer

Tel: (647) 256-1992

Email: info@hut8mining.com

FORWARD-LOOKING STATEMENTS

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

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Hut 8 as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of the Filing Statement dated March 1, 2018 relating to the Qualifying Transaction of Oriana Resources Corporation and Hut 8, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Hut 8; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Hut 8 expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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

NON-GAAP MEASURES

This press release presents certain non-GAAP (“GAAP” refers to Generally Accepted Accounting Principles) financial measures to assist readers in understanding the Company’s performance. These non-GAAP measures do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Management uses these non-GAAP measures to supplement the analysis and evaluation of operating performance.

The following term is used, which is not found in the Chartered Professional Accountants of Canada Handbook and does not have a standardized meaning under GAAP.

“Retained Bitcoin” represents the bitcoin mined less the the bitcoin used by the Company.

“Retained Bitcoin Value” represents the bitcoin mined less the bitcoin used by the Company, multiplied with the bitcoin price at period end.