Hut 8 Announces Update to Operations and Change of Auditor

Toronto, Ontario--(Newsfile Corp. - January 8, 2019) - Hut 8 Mining Corp. (TSXV: HUT) (OTCQX: HUTMF) ("Hut 8" or the "Company"), one of the world's largest public cryptocurrency mining companies by operating capacity and market capitalization, today announced updates to its operations and a change of its auditor.

Hut 8 successfully completed the purchase of 12 additional BlockBox AC data centers from Bitfury® in December 2018 as stated in its press release on November 12, 2018. The new BlockBox AC data centers utilize the Bitfury Clarke ASIC chips, manufactured by Bitfury. The performance of these new data centers has exceeded expectations by producing 12.2 Petahash per second ("PH/s") per BlockBox AC data center, but consuming approximately 1.1 MW of electricity instead of the 12 PH/s and 1.2 MWs expected prior to installation.

In addition, as a result of electricity optimization across its sites, Hut 8's 85 BlockBox AC data centers are consuming, on average, 1.12 MWs each while still producing an aggregate output of approximately 784 PH/s. We are pleased to be consuming less electricity, without impacting our mining output. As a result, Hut 8's current aggregate operating electrical consumption is approximately 95.2 MWs, instead of the previously expected 100.2 MWs of consumption, across its 85 Blockbox AC data centers.

Hut 8 has also changed its auditors from MNP LLP ("Former Auditor") to Dale Matheson Carr-Hilton Labonte LLP ("Successor Auditor") effective January 8, 2019. There were no reservations from the Former Auditor's ending at the date of the replacement. There are no "reportable events" (as the term is defined in National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102")) between the Company and the Former Auditor. In accordance with NI 51-102, the notice of change of auditor, together with the required letters from the Former Auditor and the Successor Auditor, have been reviewed by the board of directors of the Company and filed on SEDAR.

Since beginning its mining operations in December 2017, Hut 8 has mined over 5,600 bitcoins. Hut 8's current capital structure consists of 85,359,833 common shares outstanding, 2,882,222 warrants and 965,000 options. In total, Hut 8 owns and operates two sites in Alberta, Canada utilizing 85 BlockBox AC data centers with current operating capacity of 95.2 MW and 784 PH/s.

ABOUT HUT 8 MINING CORP.

Hut 8 Mining Corp., headquartered in Toronto, Canada, is a cryptocurrency mining company established through an exclusive arrangement with the Bitfury Group, the world's leading full-service blockchain technology company. Through the Bitfury Group, Hut 8 has access to a world-leading proprietary mix of hardware, software and operational expertise to construct, optimize and manage data centers in low-cost and attractive jurisdictions. Hut 8 is led by a team of industry experts and intends to provide investors with exposure to blockchain processing infrastructure and technology along with underlying cryptocurrency rewards and transaction fees.

Hut 8 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. Hut 8 provides a secure and simple way to invest.

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

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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.