Investor Presentation January 2017 Safe e Harb rbor or Stat - PowerPoint PPT Presentation

More than Power Ticker: CLSK Investor Presentation January 2017

Safe e Harb rbor or Stat atem ement nt Statements in this presentation relating to plans, strategies, testing and operational performance, projections of results of specific activities and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company's products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission (the "SEC"). For a more detailed description of the risk factors and uncertainties affecting the Company, please refer to the Company's recent SEC filings, which are available at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. OTC: CLSK 2

Invest estor or High ighlig lights hts Develope ped d a p proprie prietar tary y micr crogri grid d energy gy operati ting ng platf tform orm capable of managing ng comp mplex x power syst stems s from the 4 k kW to 10 MW range in real-ti time Microgrids 101 • CleanSpark is at the forefront of the U.S. micr icrogri rid mar arket et wh whic ich is is pr proje oject cted ed to to grow 300 300% from $225M in 2016 to $1B in 2020 • Growi wing ng and nd urgen ent worl orldwi dwide ne need ed for secure and localized energy production to replace aging and vulnerable centralized grid • Pri Prime mar market et for or resi siden enti tial al micr microg ogrid id solu solutio tions ns driven by precipitous drop in cost of energy storage over the last 5 years Competitiv ompetitive ad advan anta tage ge: New, proprietary “DNA” • monitoring system that enables “real - time” management across multiple microgrids • Techn hnolog ologies ies are pr ar proven en with multiple turnkey microgrid installations which are in operation today Expect pect to to grow reven enue from $15M in 2017 to • >$100M over the next five years OTC: CLSK 3

Compe peti titiv tive e La Land ndscape scape Dynamic ic Netw twork ork Analy lysis is Energy gy Operati ting ng Platf tfor orm Differe erentiat ntiator ors Deliv liver ery Turn-Key Monitoring Automated Rate Wholesale Performance Performance Low-Cost Intelligence Scheduling of Intelligence Market and Financial Wrapped Solution Company Identifying New Demand Enabling Interaction Modeling* Solutions (Vendor Agnostic Opportunities Management Energy Sales Systems (Performance Procurement) Incorporating Certainty) (ESS Upsell) (Business Cases) (Multi-Tenant) (Future Market) (Vendor Agnostic)                                                          Less capable  No competing  Not agnostic,  Pending in modeling equipment practice ∴ higher cost * Internally developed modeling platform offering financial modeling and optimization based on various vendors’ validated sys tem performance and pricing details OTC: CLSK 4

Mark rket t Overvie iew: : Microgrids ogrids – Poised sed for Growt wth Total Global Microgrid Revenue ($ in billions) $50 $40.7 CAGR: : 27% $40 $32.3 $25.8 $30 $19.8 $15.9 $20 $12.2 $9.8 $10 $0 2014 2015 2016 2017 2018 2019 2020 Source: Navigant Consulting Globa obal Microgri rid Market: Microgr grid id Enabli bling ng Techno nolog logie ies (MET): Est. $9.8B in 2014 and projected to exceed Worldwide investment in Microgrid Enabling $40.7B by 2020 Technologies is estimated at $155B from 2014 through 2023 OTC: CLSK 5

Mark rket t Tren ends ds Drivin ving g Tremen emendo dous us Oppor ortu tunity ity Opportu tuni nity Mark rket et Trends nds • Traditional microgrid ids wer ere e Growing state e and d feder deral l • Cost lead ader er in the market. t. • expen ensiv ive e and used for governmen ment renewable ble • Early ly mover er adv dvantag antage; adoption bac ackup power er mandat dates es will drive market will scale exponentially • Rapid growth and • Delivers a turn-key, , bankab able le • Comple lex, , custom om dec eclin lining ing cos osts ts of solutio ion that is lower cost and integ egratio ations s at a high cost st renewable generation and able to enhance investor returns storage technology • Single vendor solutions • Increa easi sing plug-and and-pla lay • Hard socia ial l shift toward have limited competition functionality tionality: the most rapidly renewable technologies and resulted in higher er cost st deployable, technology logy agnost ostic ic, • R&D over past decade has integrated microgrid software and Primary source of past • resulted in proven control platform on the market microgrid generation has hardware and devices • Leading the path towar ards the been diesel fuel which is future e sustainab ainable le smar art t grid id with non-ren enewab able le and subject strong partner ecosystem to price vola latili ility OTC: CLSK 6

Today’s Grid: The Central Model Problem • Central aging distr trib ibutio ion, largely reliant on fossil sil fuel l combustion • Increasing outag tages es and interruptions due to comple lexity ity and increased number of threa eats • Ingrained ained inter erest sts s disallo sallow innovatio ation in a time of rapid technological transformation • Baseload energy source reliant on local utilities; renewable sources (solar, wind) not baseload Limited capacity for distributed solar and wind On-site back up power required by each customer Significant energy loss Only 10% % to to 25% % of Energy System losses of an before leaving power energy rgy is deliv ivered ered to to additional 5% to 20% inefficiency plant custom omer ers OTC: CLSK 7

Our Solut ution ion: : Flex x Power er Syst stem em (FPS PS) Integ egrat rated d micr crogrid grid softw tware re and contr trol platf tform rm for plug-n-pla play y micr crogri grids ds Optimizes energy consumption Cost through efficiency and user interaction Savings Provides true energy and Grid Connected cyber security Storage Security Integrates and autonomously controls Islandable advanced energy storage Enables 100% renewable microgrid solutions Renewables Most adva vance ced tool for behind nd-th the-met eter er microgri rid and DERs mark rket et OTC: CLSK 8